MAS and AirAsia Shares Swap

[flee 5]

Another alternative view is that if FY, AK and MH were to carry on like before, all three airlines will find that the intense direct competition will not be sustainable and sooner or later, one or more of them will be forced to withdraw to cut losses.

 

Since MH/FY are in a weaker financial position with billion RM losses already booked, they will die from bleeding earlier and may be forced to withdraw. AK's victory will be a hollow one, as its nose will be severely bloodied.

 

This kind of "orderly" transition will preserve MH/FY's cash better and AK will also not need to keep fares artificially low (i.e. unsustainable in the long term) just to offer "wasteful competition".

 

The resulting cash savings from domestic routes can be channeled to their international operations where the real competition with foreign carriers needs to be waged if Malaysia is to develop KUL as an ASEAN hub like SIN/BKK/CGK.

[Sharil Abdul Rahman 0]

Lets say bye bye to MH lah.

 

kill it off, make Air Asia the national airline.

 

that is what TF wants kan?

[flee 5]

Are you sure? Where can the cronies go to "milk" the taxpayers?

[Sandeep G 1]

I'm very suprised at the announcement of the termination of Rome-FCO.

 

1. It doesn't speak volumes about the on-going mutual partnership discussions between QF and MH. Australia has a high population of migrant-italians whom still have links with their motherland. If MAS completely removes itself from FCO and Italy - there goes the potential for connecting traffic. OneWorld doesn't seem to benefit at all?

 

2. Are the network planners at MH asleep? or are they screaming their lungs off to the decision makers from a sound-proof room?? MH operates KUL-FCO on Monday/Thursdays/Saturdays. At present, MH also operates KUL-IST on Monday/Wednesday/Saturday. Here are the Schedules:

 

KUL-FCO B772 DEP 2350 ARR 0535+1

FCO-KUL B772 DEP 1220 ARR 0650+1 Total Aircraft Transit IDLE time in FCO: 6 Hours 45 Minutes

 

KUL-IST B772 DEP 0030 ARR 0600+1

IST-KUL B772 DEP 1500 ARR 0710+1 Total Aircraft Transit IDLE time in IST: 9 hours 00 Minutes

 

Why not make the route KUL-IST-FCO/FCO-IST-KUL????? Crew may operate IST-FCO-IST as a shuttle service and thus layover in IST - cheaper than having the crew layover in ROME.

Plus 9 hours of idle time in IST currently? Aircraft utilisation would improve markedly!!! Instead of sending 2 B777s in the same direction with questionable loads at roughly the same time - SEND JUST THE ONE! And perhaps increase frequency to cope with combining two flights from 3 - 5 a week - thus further improving aircraft/crew utilisation.

 

The shuttle operations could actually help MAS restart a number of lost ports and improve aircraft utilisation and crew utilisation/productivity. Think of

 

If it's a question of rights - then bang on the governments door and ask them to help with Traffic rights between IST-FCO - that's what MH SHOULD be banging on the govts door for, instead of the usual rhetoric..

 

For Example: SQ operates SIN-IST-ATH vv WITHOUT fifth freedom in IST, but loads are still healthy!!!

 

WAKE UP MH! Remember the proverb: THERE ARE MANY WAYS TO SKIN A CAT!

[Isaac 0]

MAS is currently flying 56 times/month on the KK-HK route.

56 times/month ? MAS itself is operating 49 flights/week with its own aircraft and another 35 flights/week are operated by KA, a total of 84 flights a month from Kota Kinabalu to Hong Kong. I wondered how they come up with the number 56 times/month

 

 

AirAsia planning increase in KK-HK frequencies in anticipation of MAS withdrawal

MAS has not announced definite cuts to its international routes from the KK hub but earlier indicated that these are on the chopping board. In anticipation

of the MAS move, AirAsia will from 21 February 2012 increase its KK-Hong Kong flights from seven times/week (once daily) to 10 times/week, a net increase of 24 one-way flights/month. MAS is currently flying 56 times/month on the KK-HK route. Hence, if MAS abandons the KK-HK route altogether, there will be a net 15% reduction of capacity (Dragonair also serves the route).

MAS has been serving this route (BKI/HKG) since the 70s, if i'm not mistaken and as far as i am concerned, MAS benefits greatly from the connecting passengers they get from Mainland China mostly through China Eastern Airlines on this route. BKI/HKG has a strong O&D traffic as well as connecting traffic. One of the reasons why KA is still serving BKI too.

 

I personally have flown this route a few times and the flights were either full or near full. Load in Business Class seemed good too. Both MH and KA would have even more passengers flying with them if it wasn't because of BI. I flew BI to BWN three times already this year and there were always many HKG and PVG bound passengers flying BI.

 

I also don't think yield is the problem especially for the HKG flight. All international flights tickets ex-BKI are always more expensive than flying out from KUL.

 

 

From KK, AirAsia also flies to Taipei and Shenzhen, and may benefit from reduced competition to Taipei if MAS pulls out. AirAsia does not currently fly

from KK to Seoul, Perth, Tokyo or Osaka. However, if MAS cancels its flights from KK to the latter four destinations, it may open up new route opportunities

for AirAsia.

Monopoly in the making If this happens, i hope foreign carriers such as KA, OZ etc. will seize this opportunity and increase the frequency to BKI because not everyone wants to fly Air Asia.

[V Wong 0]

WAKE UP MH! Remember the proverb: THERE ARE MANY WAYS TO SKIN A CAT!

 

Unfortunately the cat are taxpayers...

[BC Tam 2]

Unfortunately the cat are taxpayers...

(unfortunately, being a taxpayer, I should be crying instead !)

[Jeffery Lim 0]

i guess the best way now to travel to FCO is through EK, or maybe Etihad/Qatar Airways

[Arzman 0]

I'm very suprised at the announcement of the termination of Rome-FCO.

 

1. It doesn't speak volumes about the on-going mutual partnership discussions between QF and MH. Australia has a high population of migrant-italians whom still have links with their motherland. If MAS completely removes itself from FCO and Italy - there goes the potential for connecting traffic. OneWorld doesn't seem to benefit at all?

 

2. Are the network planners at MH asleep? or are they screaming their lungs off to the decision makers from a sound-proof room?? MH operates KUL-FCO on Monday/Thursdays/Saturdays. At present, MH also operates KUL-IST on Monday/Wednesday/Saturday. Here are the Schedules:

 

KUL-FCO B772 DEP 2350 ARR 0535+1

FCO-KUL B772 DEP 1220 ARR 0650+1 Total Aircraft Transit IDLE time in FCO: 6 Hours 45 Minutes

 

KUL-IST B772 DEP 0030 ARR 0600+1

IST-KUL B772 DEP 1500 ARR 0710+1 Total Aircraft Transit IDLE time in IST: 9 hours 00 Minutes

 

Why not make the route KUL-IST-FCO/FCO-IST-KUL????? Crew may operate IST-FCO-IST as a shuttle service and thus layover in IST - cheaper than having the crew layover in ROME.

Plus 9 hours of idle time in IST currently? Aircraft utilisation would improve markedly!!! Instead of sending 2 B777s in the same direction with questionable loads at roughly the same time - SEND JUST THE ONE! And perhaps increase frequency to cope with combining two flights from 3 - 5 a week - thus further improving aircraft/crew utilisation.

 

The shuttle operations could actually help MAS restart a number of lost ports and improve aircraft utilisation and crew utilisation/productivity. Think of

 

If it's a question of rights - then bang on the governments door and ask them to help with Traffic rights between IST-FCO - that's what MH SHOULD be banging on the govts door for, instead of the usual rhetoric..

 

For Example: SQ operates SIN-IST-ATH vv WITHOUT fifth freedom in IST, but loads are still healthy!!!

 

WAKE UP MH! Remember the proverb: THERE ARE MANY WAYS TO SKIN A CAT!

 

 

SQ operates with 5th freedom right between IST/ATH. I just read a trip report in A.Net moments ago!

[Isaac 0]

i guess the best way now to travel to FCO is through EK, or maybe Etihad/Qatar Airways

Or SQ, CX and TG

[BC Tam 2]

A mail just dropped in from MASholidays trying to entice me to go Cape Town and/or Buenos Aires - travel by 30 Jan 2012

It's really like mopping up the last bit of gravy before dinner plate is cleared away

Edited December 15, 2011 by BC Tam

[Nik H. 3]

Aaaa....Masholidays.....place run by an ex auditor/accountant who was extended even after retirement and has absolutely no experience handling business clientele ever in her life.....

One of the many personnel inconstancies of MH failure root cause.....

[alberttky 0]

MyCC to look into MAS-AirAsia deal

 

Malaysia Competition Commission (MyCC) will officially look into the deal between Malaysia Airlines (MAS) and AirAsia when the Competition Act comes into effect on January 1 next year.

 

 

However, chief executive officer Shila Dorai Raj said neither MAS nor AirAsia had submitted any report to MyCC.

 

MyCC received several complaints from consumers, especially during its road show in Sabah and Sarawak recently.

 

"Our priority is the consumers. We will investigate the deal next year onwards. From our initial analysis, we think there could be something," she told reporters.

 

Yesterday, International Chambers of Commerce (ICC) organised the "ICC Malaysia CEO Business Luncheon Talk on Competition Act 2010: An Insight into What to Expect".

 

MyCC chairman MyCC chairman Tan Sri Siti Norma Yaakob was present as a guest speaker to give an insight into the Competition Act.

 

"The Act is important to further boost foreign investment to help spur Malaysia's vision to be a high income economy by year 2020," she said.

 

Earlier, in an interview with another media, she said the commission will follow the development of MAS-AirAsia deal closely to see if any anti-competitive activities or agreements arise following the alliances between both airlines.

 

The Competition Act is to prevent business monopolies or cartels. It will apply to all commercial activities undertaken within and outside Malaysia that affect competition in the country.

 

The Act will provide a regulatory framework including powers to investigate, adjudicate and impose penalties.

 

The introduction of the Act would create healthy competition, which would in turn stimulate production and innovation thus leading to a wider choice of products with better quality and reasonable prices.

 

Since its inception in June 2011, MyCC has initiated advocacy programmes to increase awareness of the Act among the stakeholders, especially businessmen.

 

 

Read more: MyCC to look into MAS-AirAsia deal http://www.btimes.com.my/Current_News/BTIMES/articles/comps/Article/#ixzz1gedYjsOI

[Raymund Yeoh 1]

If MH can cut PEN - SIN shuttle flights............then personally I dont think there is any more future for this airline.....MI has increase from 3 to 4 flights daily and so does AK and 3K......

I dont understand why this route can be a money losing route.......

[Ikman Ikreza 0]

If MH can cut PEN - SIN shuttle flights............then personally I dont think there is any more future for this airline.....MI has increase from 3 to 4 flights daily and so does AK and 3K......

I dont understand why this route can be a money losing route.......

 

If MH cut PEN-SIN then give to Firefly as new route it's good. Currently FY's operation from SIN only to IPH, KUA and SZB.

[flee 5]

Yes, FY's operating costs will be lower due to turbo prop usage. They can also increase frequencies. FY's SIN-IPH route is doing very well.

 

On a seperate subject, here is more proof the the A380 will attract more pax:

Ticket sales of A380 flights are better than it is expected by China Southern Airlines

 

Therefore, MH should study all the A380 operators on how to introduce the A380 to best effect. None of the airlines that have started A380 operations report inability to fill up the A380. Lets hope MH has the same experience.

[michgyver 0]

Heard the latest news AAX already got the green light to fly to Sydney Australia...ahead of Scoot!!

[flee 5]

There are some similarities between AA's and MH's problems.

 

Good analysis:

http://www.centreforaviation.com/blogs/aviation-blog/bankruptcy-may-save-american-airlines-but-what-will-save-the-us-airline-industry-64662

[V Wong 0]

It was reported in the Sun today that MH will redeploy some 10,000 workers as part of its turnaround strategy and AJ will meet the union today... any truth in this?

[Mike P 0]

It was reported in the Sun today that MH will redeploy some 10,000 workers as part of its turnaround strategy and AJ will meet the union today... any truth in this?

 

Redeploy 10,000 workers and AJ will meet the union? Hmmm does it signal that these 10,000 workers would be the new workforce for the new premium airlines like RedQ by QF? In collaboration with MH & AK? And perhaps leave some for the QF operations in KUL soon.... who knows?

[Izanee 0]

AJ= ahmad jauhari not alan joyce!

[Nik H. 3]

Redeploy 10,000 workers and AJ will meet the union? Hmmm does it signal that these 10,000 workers would be the new workforce for the new premium airlines like RedQ by QF? In collaboration with MH & AK? And perhaps leave some for the QF operations in KUL soon.... who knows?

 

Workforce already got their backs against the wall. Not much by way of negotiation as they have no choice. Management's got this well sewn up I hope. And have in them some compassion for the staff.

 

Staff was never the problem. It was Leadership that's been wanting.

[Mike P 0]

AJ= ahmad jauhari not alan joyce!

 

Haha, so misleading!

[Izanee 0]

Those worried about duopoly from the CCF, think twice. It is going to be monopoly...and the possible slow and painful extinction of MH, infiltrated by the cancerous growth that is AK?

 

 

Are we in the minority here? seems like many people are in love with TF! it seems like he is systematically cannibalising MAS for his own benefit. MAS will soon lose its flag carrier status when suddenly, AK/D7 is flying to more places than them.

 

Also having tried to book his 'now everybody can fly' low fares on multiple occasions and failing epically, I think he is one big CON job. Unfortunately, in my line of work, I don't have the luxury of planning my leave 5 years in advance. Thanks Tony, but no thanks.

Edited December 16, 2011 by Izanee

[KC Sim 2]

I just love it ... AJ is Ahmad Jauhari as well as Alan Joyce!!!

 

Nik H : Staff was never the problem. It was Leadership that's been wanting.

 

What a sobering thought and what a direct hit on the nail. For as long as MH's leaders are political appointees, the woes of Malaysia Airlines will just re-surface once every few years.

 

KC Sim