MAS and AirAsia Shares Swap

[AlvinLvK 0]

I wonder what will they do with their -MX a/c after suspend all these routes from BKI....all base in KUL??

[flee 5]

I wonder what will they do with their -MX a/c after suspend all these routes from BKI....all base in KUL??

My guesses:

 

Some would go to the new premium airline. However I think those would need some reconfiguration work to be done to make the cabins more luxurious.

 

Others might be used to replace B734s so that the old workhorses can be finally retired.

[CH Teo 0]

I wonder what will they do with their -MX a/c after suspend all these routes from BKI....all base in KUL??

 

I am pondering the same question too...

[Waiping 12]

Hopefully they won't be laying around KLIA...

[KK Lee 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.

 

FY’s ATR may have lower CASK than 738 and A320 but slower and cruise at lower altitude, which is less comfortable in cloudy weather.

 

Given many of PEN-SIN regulars are on day trip may find additional travelling time on ATR reduce their working hours.

 

FY is doing very well on SIN-IPH is purely lack of competition.

[Arthur Van Straten 0]

MAS probes graft claims in cargo unit, boss put on leave.

 

I am referring to a posting of KK Lee on December 21.

Have just read it and was wondering what happened here.

 

Is in this case, "on leave" a euphemism for sacked?

Any more info on this not small matter from the inside, as a graft probe

on the highest echelons of MasKargo looks a serious issue to me.

I do not expect that "people in the know" would spill all the beans here

but as the issue is now in the public domain, is there nothing else which can be revealed?

 

Since J.J. took over and also under the now on leave GM, MasKargo has been making good money.

Is there more to this story? (not wanting to be the conspiracist)

 

As it is actually off topic in this thread, maybe the moderators can

put it in a new topic when there is more interest?

 

Thx.

Art

[V Wong 0]

from thesun 28/12/11 :

 

"MAS’s way forward

Posted on 28 December 2011 - 05:06am

WITH reference to “MAS proposals merely short-term” (Letters, Dec 22), I would like to thank the writer for his interest in Malaysia Airlines and to respond to a number of points he raised.

 

Malaysia Airlines on Dec 7 unveiled its Business Plan, which spells out the way forward for the airline following three consecutive quarters of losses in 2011, amounting to over RM1.2 billion.

 

The Business Plan contains two key strategies for the airline to undertake. The first is to stem the unsustainable losses that the airline is experiencing and put it on a sound footing for recovery. The second is to introduce a number of game changers that will fundamentally overhaul our business model and sustain our long-term performance in a dynamic and ever-changing airline landscape.

 

Seen within the context of the Business Plan, the writer’s conclusion that the cancellation of routes and spinning off of ancillary businesses were “short-term and ineffective measures” is misleading and incorrect.

 

The cancellation of unprofitable routes is one key area of our recovery strategy. We are shrinking to grow and as we get back to firm financial footing, we will expand our network. The cancellation of unprofitable routes will lead to a reduction of Available Seat Kilometres (ASKs) by 12% and this is estimated to generate savings of RM220 million a year.

 

Many financially-troubled airlines including JAL of Japan and Garuda of Indonesia had to resort to aggressive network cuts before they could return to the black.

 

The spin-off of ancillary business such as cargo, engineering and pilot training, contrary to the writer’s conclusion, is a move to sustain the performance of the group over the long term.

 

The rationale behind this is simple. As it is, Malaysia Airlines has become a complex business with a number of operating entities. We need to de-clutter the business to ensure proper focus on our core business, that is, flying our customers.

 

Spinning off the ancillary businesses has advantages, both for the core airline business as well as for the spun-off entities. It allows the core airline to focus on growing the business and access to a lower cost base in terms of such services, while the spun-off entities will have the opportunity to grow by servicing other airlines.

 

On the delivery of new aircraft, there are several cogent business reasons for Malaysia Airlines to take delivery of 23 new and fuel-efficient aircraft by next year which will phase out the ageing A330-200 and B747-400. The average age of our entire fleet is 13 years, compared to seven for Cathay Pacific and 10 for Singapore Airlines. Having a newer fleet will help us realise savings on fuel, which makes up about 40% of our operating cost.

 

Equally important, the new aircraft, equipped with best-in-class hardware and coupled with our award-winning cabin service, will help to win back customers. These advantages will be supported by a revamped approach to branding, distribution and loyalty.

 

The writer is right in acknowledging that our cabin crews have won recognition over the past few years – an advantage that Malaysia Airlines will leverage as it strives to be the preferred premium carrier, with the support and encouragement of all stakeholders, including well-meaning Malaysians.

 

Ahmad Jauhari Yahya

Group Chief Executive Officer

Malaysia Airlines"

 

 

A whole load of ...... !Not addressing the real issue of why customers are deserting the airline, low load/yield in unprofitable routes, etc. There is a limit that you can blame on oil price, while other carriers are making profit...

Edited December 27, 2011 by V Wong

[sweekee 0]

A news from airliners net.

B772 will operate KUL-AMS daily instead of B747 from March 2012,it seems like MH gonna retire their B747 as fast as possible

[Isaac 0]

As many of you already know, Air Asia is to introduce another 3x weekly flights between BKI/HKG starting in February next year. I noticed BKI/TPE is cut down from the current daily to just 4x weekly when the new additional morning flight between BKI/HKG starts. The timetable still shows BKI/TPE as daily. Can anyone please confirm if the flight to TPE has indeed been cut to just 4x weekly ?

[Mohd Azizul Ramli 2]

A news from airliners net.

B772 will operate KUL-AMS daily instead of B747 from March 2012,it seems like MH gonna retire their B747 as fast as possible

Wow, lots of A.Netters are going to be heartbroken. AMS has been hoping for MH to be their first A380 operator. And now with AMS being downgraded from B744 to B772, this is a very clear indication that MH will not be sending the A380s to AMS at all. This is the full news from Jim's blog. http://airlineroute.net/2011/12/28/mh-ams-mar12/

 

Also, confirmation of all the route cuts from Jim's blog:

 

http://airlineroute.net/2011/12/14/mh-seasia-jan12cxld/

http://airlineroute.net/2011/12/14/mh-khidxbdmm-jan12/

http://airlineroute.net/2011/12/07/mh-feb12/

http://airlineroute.net/2011/12/14/mh-fco-w11cxld/

[Pieter C. 5]

Wow, lots of A.Netters are going to be heartbroken. AMS has been hoping for MH to be their first A380 operator. And now with AMS being downgraded from B744 to B772, this is a very clear indication that MH will not be sending the A380s to AMS at all. This is the full news from Jim's blog. http://airlineroute.net/2011/12/28/mh-ams-mar12/

 

Also, confirmation of all the route cuts from Jim's blog:

 

http://airlineroute.net/2011/12/14/mh-seasia-jan12cxld/

http://airlineroute.net/2011/12/14/mh-khidxbdmm-jan12/

http://airlineroute.net/2011/12/07/mh-feb12/

http://airlineroute.net/2011/12/14/mh-fco-w11cxld/

 

Quite shocking indeed for AMS...does this also has something to do with the termination of the KLM-codeshare (because of Oneworld) ?

 

Rumours are now overhere, EK will start A380 flights between DXB and AMS, and therefore will become the 1st A380 operator into the Netherlands...

[Mohd Suhaimi Fariz 2]

Quite shocking indeed for AMS...does this also has something to do with the termination of the KLM-codeshare (because of Oneworld) ?

 

I think it's obvious that it has everything to do with Oneworld

[Yang Zulhilmi 0]

but,different alliance is not really a big matter..AF still codesharing with QF for Oz destinations ex-SIN as far as i know

[alberttky 0]

Garuda Indonesia reports 124% profit increase in 11 months to Nov-2011

Garuda Indonesia reports (23-Dec-2011) a 42% year-on-year revenue increase; 124% profit growth in 11 months to Nov-2011:

 

Unconsolidated revenue: IDR22.29 trillion (USD2.5 billion), +41.9% year-on-year;

Income: INR725 billion (USD80 million), +124%;

Passengers: 15.45 million, +36.4%;

Capacity (ASKs): 29.67 billion, +26%;

Yield: USD9.6 cents, +13%;

Flight frequency: 118,009, +25.5%;

Load factors: 75.3%, +5.5 ppts;

Aircraft utilisation: 10.42 hours, +13.0%;

OTP: 85%, +5.6 ppts.

 

http://www.centreforaviation.com/news/garuda-indonesia-reports-124-profit-increase-in-11-months-to-nov-2011-134668

 

Sigh... when's MH's turn??

[filipeseda 0]

Equally important, the new aircraft, equipped with best-in-class hardware and coupled with our award-winning cabin service, will help to win back customers.

 

Really, I find this very hard to believe.

 

He does have a point that shaving unprofitable routes does give the airline more breathing space. However, without a niche market, MHs route network will be highly unfocused and inadequate on all fronts. If MH wants to cut back it has to find a market where it'll focus on. Seriously, MHs committee knows nuts about network planning.

[flee 5]

I think that the initial urgency is to stop the bleeding. Unfortunately, the bleeding isn't just on the routes, it is also happening on other things like procurement and HR costs. While they have cut the routes that bleed, they have not made any announcements on further cost savings measures.

 

I think that they have decided to focus on Asian routes - that is where new routes will be launched once the new A330-300s arrive next year. They are not too keen to use old, fuel guzzling and uncompetitive aircraft to launch new Asian routes, thereby giving the impression that it is only cutting routes and trimming the network.

[Isaac 0]

I think that the initial urgency is to stop the bleeding. Unfortunately, the bleeding isn't just on the routes, it is also happening on other things like procurement and HR costs. While they have cut the routes that bleed, they have not made any announcements on further cost savings measures.

 

I think that they have decided to focus on Asian routes - that is where new routes will be launched once the new A330-300s arrive next year. They are not too keen to use old, fuel guzzling and uncompetitive aircraft to launch new Asian routes, thereby giving the impression that it is only cutting routes and trimming the network.

Any idea when they will start retiring the old 333 ? The recent reports did not mention about the old 333 exiting the fleet, just the 734 and 332.

[V Wong 0]

No to MAS downsizing

Posted on 29 December 2011 - 05:41am

KANG SIEW LI

 

PETALING JAYA: Malaysia Airlines’ (MAS) unionised staff are unhappy over a potential plan by its management to downsize the workforce as part of the struggling national carrier’s turnaround plans.

 

MAS Employees’ Union (Maseu) president Alias Aziz told SunBiz that MAS management had indicated its intention to reduce its workforce during a Dec 16 meeting chaired by MAS group CEO Ahmad Jauhari Yahya and his deputy Mohammed Rashdan Mohd Yusof, which was attended by representatives of Maseu, Malaysia Airlines Pilots’ Association, Airline Workers Union of Sarawak, Air Transport Workers Union of Sabah and MAS Executive Staff Association.

 

“However, the management did not say how many employees will be affected, although it was told that only 3,000 staff were needed for the airline’s short haul operations which include Firefly and the new yet-to-be-named regional premium carrier (that will be launched by mid-2012),” said Alias on Wednesday.

 

MAS also wants its employees to first resign from the airline if they opt to join the new regional airline.

 

Right now, MAS has about 20,000 workers.

 

theSun had reported on Dec 16, quoting sources, that about half of MAS’s total workforce will be affected by the airline’s business plan, which involves cutting money-losing routes, deploying new aircraft, managing costs and spinning off ancillary businesses.

 

“We (union members) are not happy with the latest business plan for MAS. We are concern about the impact of cuts on MAS’s unprofitable routes, closing of some stations overseas and spinning off its subsidiaries which may inevitably lead to staff cuts.

 

“This is not the way to turnaround MAS,” said Alias.

 

“This (possible job cuts) also goes against Prime Minister Datuk Seri Najib Razak, who had in a meeting with me (as Maseu president) in September gave an assurance that there would be no job cuts nor voluntary separation schemes (VSS) to follow the latest reshuffle at the airline,” he added.

 

Alias said the union members also disagree with the MAS-AirAsia share swap as they see AirAsia benefiting more from the deal, not MAS.

 

When contacted on Wednesday, a MAS spokesman said any move to redeploy or cut its workforce is “still a work in progress and we will make announcements when details are finalised”.

 

“These are still in planning stages. We are now engaging staff through a series of meetings for them to understand our plans and hear their feedback and questions.

 

“We will engage all stakeholders including the media at the right time when we have the detailed information,” he said

 

 

theSun Daily, 29th Dec 2011

[Ikman Ikreza 0]

 

“However, the management did not say how many employees will be affected, although it was told that only 3,000 staff were needed for the airline’s short haul operations which include Firefly and the new yet-to-be-named regional premium carrier (that will be launched by mid-2012),” said Alias on Wednesday.

 

MAS also wants its employees to first resign from the airline if they opt to join the new regional airline.

 

 

As my friend (MAS staff) told, the new regional airline don't have any employees' union soon.

[Mohd Suhaimi Fariz 2]

Unfortunately, the bleeding isn't just on the routes, it is also happening on other things like procurement and HR costs.

 

They don't have to do much - resignations are coming in every day from top to bottom.

[flee 5]

They don't have to do much - resignations are coming in every day from top to bottom.

These may be the very people MH need whereas the dead wood are still around.

 

AirAsia 2012 Target Optimistic & Achievable, Says OSK

 

KUALA LUMPUR, Dec 29 (Bernama) -- OSK Research Sdn Bhd is optimistic on AirAsia Bhd's outlook for 2012 on anticipation that earnings will climb 21 per cent on the back of lower fuel prices amid resilient growth in low-cost travel.

 

OSK said as low-cost air travel dominated Asean skies with 32 per cent penetration, AirAsia was the best proxy to this resilient segment during times of economic uncertainty.

 

"AirAsia, which stands to benefit from its two new hubs in Manila and Tokyo, will also get an earnings boost from its fruitful AirAsia Expedia joint venture and its ability to monetise its training academy," it said in an investment note today.

 

It said it expected more yields upside for AirAsia going forward as the competitive barriers between it and Malaysian Airlines (MAS) came down after the two agreed to collaborate.

 

"Under the tie-up, MAS and AirAsia will serve their own target markets and steer clear of head-on competition via heavy airfare discounts.

 

"AirAsia would be able to reap more benefits from the collaboration following the cessation of Firefly's jet services," it said.

 

OSK has maintained its 'buy' call on AirAsia with a fair value of RM4.57.

[flee 5]

MAS Unveils New Management Structure

 

KUALA LUMPUR, Dec 30 (Bernama) -- Malaysia Airlines today unveiled a management structure effective Jan 1, 2012, to rally its staff and steer the national carrier into a new era for the success of its business plan announced earlier.

 

In the new structure, Customer Experience, Operations, Human Capital, Network, Alliance, Strategy and Planning will now report directly to Group Chief Executive Officer (CEO), Ahmad Jauhari, who also takes on the role as CEO of Long-Haul.

 

Deputy Group CEO and CEO of Short-Haul, Mohammed Rashdan will lead the charge for the operations of Short-Haul, Group Finance, Aircraft Finance and Management, and in the interim, helm Commercial.

 

"The organisation structure signals a new era for the Malaysia Airlines group that will further build pride among our employees and confidence for our customers and stakeholders.

 

"It involves the setting up of several new business units and the re-naming of existing functions as well as the introduction of new leaders to take over from familiar faces who have decided to pursue other career opportunities," Ahmad Jauhari said in a statement, Friday.

 

He added that this will ensure both the smooth transfer of responsibilities and the successful execution of the business plan to enhance the Group's reputation and significance for its eventual entry into the one world alliance by the end of 2012.

 

Among the new and re-named business units are, Network, Alliance, Strategy and Planning, Programme Management Office, Communications, renamed Strategic Communications, Corporate Finance, renamed Aircraft Finance and Management and Audit and Business Advisory which has been renamed Internal Audit.

 

MAS said the new organisation structure proceeds with the departure of several leaders of the Malaysia Airlines team, including Datuk Dr Amin Khan (from Commercial Strategy), Mohd Roslan Ismail (from MAS Aerospace Engineering), Shahari Tan Sri Sulaiman (from MASkargo) and Datin Sharifah Salwa Syed Kamaruddin (from Revenue Management).

 

"Moving forward, the group's leadership team will be strengthened with the entry of highly experienced talent, namely Hugh Dunleavy to lead Network, Alliance, Strategy and Planning and Shihaj Kutty to lead Revenue Management," Ahmad Jauhari said.

 

Hugh Dunleavy, with more than 30 years experience in the aviation industry, joins Malaysia Airlines with a solid reputation to deliver results in his assigned areas, including strategy and planning, revenue/yield management, airline alliances, decision support systems, operations research and regulatory affairs.

 

Meanwhile, Shihaj Kutty has over 15 years experience in aviation, specifically in sales and revenue management, as well as managing reservations and ticketing offices for major European and Gulf carriers while based in the Gulf region.

 

Both Hugh and Shihaj will report for duty at Malaysia Airlines by mid-January 2012.

[Mohd Azizul Ramli 2]

Finally we see some 'import' from people not from the crony GLC gang circle. I did some searches and I think both new managers mentioned are of worthy credible, the former came from Westjet, while the latter came from Etihad Airways:

 

 

[BC Tam 2]

..... introduction of new leaders to take over from familiar faces who have decided to pursue other career opportunities, .....

Very eloquently phrased, credit to the PR machinery

[V Wong 0]

Good news.. especially news of some of those dinosaurs leaving MH. Enrich head still intact....

Edited December 31, 2011 by V Wong