MAS Restructuring Plan

[Andrew K 0]

Man, oh man. I just read the report. Increasing seats in Y class? Damn. So by the report 'new products' and 'new planes' are coming in year 3. So i'm guessing thats 2009. A380 arrives 2007. So they'll fly two years with the current F/C product and then they'll replace them? Jeez. The painful truth aye?

 

[kandiah k 0]

LON-LGK-KUL, LON-PEN-KUL, SYD-KCH-KUL, KUL-KCH-PER and FRA-KUL-KCH will be cut immediately ..

no more MR Bond flight (MH 007) and no more B777 for Kuching...sad..

 

 

This could also mean that the LHR route may have some reduction because if I am not mistaken, it was routed through PEN and LGK to get additional slots in LHR.

 

 

Any ideas ??

 

 

[Pieter C. 5]

This could also mean that the LHR route may have some reduction because if I am not mistaken, it was routed through PEN and LGK to get additional slots in LHR.

Any ideas ??

 

Slots at LHR are VERY precious; guess, they'll want to use them for the non-stop flights, rather then giving up on them

[Bing Chu 0]

For many years MAS have been trying to balance herself with government's interest against commercial viability. Unfortunately our government has yet to know what "fittest survives" means let alone the commercial reality.

Sadly SV, I doubt if the people in charge of MH know the concept of 'survival of the fittest' either, much less commercial reality It would be embarassing to recount the number of times the airline has had to ask for help from the govt, just so it can carry on its merry way and either repeat the same mistakes or create new problems.

 

I reckon this episode could perhaps be its most serious case to date ; or it could be more widely dissected upon nowadays due to these brilliant online forums !

 

Imagine stretching out your hand asking for RM2b and in the same breathe declare you expect to dump another RM1.7b during the next 12 months. My calculator rounds it off to RM4.66 million a day, RM194k every hour, RM3,233 every minute !

 

And to cap it off, there is this request for 'no interference' in its operations.

 

How do these people reconcile fantasy and reality so seamlessly - fascinating !!

[Bing Chu 0]

Oh, another thought - I hope Datuk TF has managed to pick himself off the floor after bout of laughter !!

 

I imagine one could quite readily get a decent new airline flying with RM4b available, maybe less is required. Would Malaysian govt be willing to consider this option ? Are we ready for this ?

[Seth K 3]

MAS got
GREEN LIGHT
from the government

Looks like Penang Minister not happy with MAS pulled out LHR-PEN
He said there must be another way................looks like he don't really concern what happen a.k.a. dont care

[H C Chai 4]

LON-LGK-KUL, LON-PEN-KUL, SYD-KCH-KUL, KUL-KCH-PER and FRA-KUL-KCH will be cut immediately ..

no more MR Bond flight (MH 007) and no more B777 for Kuching...sad..

 

Immediately as in when they started the summer timetable (26 Mar), or even before this?

[Fairul 0]

maybe Abang Johari of Sarawak will join the list of the politicians since he's the one to lobby MAS to have non-stop flights from Australia and Sarawak.

[Seth K 3]

Whatever happen to politicians mind right now, it doesn't really matter. Badawi already gave green light for MAS to do whatever the best. If the politicians mad at MAS, guess no one cares anymore there. I can feel that the price will be increase soon they take over.

 

 

what happen to MAS headquaters right now?

[Bing Chu 0]

PM has given green light to restructuring plan, but has he given green light to requested money from govt ?! Trump card may yet be dealt. And politicians being politicians, well ................

[Seth K 3]

I know Petronas can help a lil bit here

[S V Choong 4]

It would be embarassing to recount the number of times the airline has had to ask for help from the govt, just so it can carry on its merry way and either repeat the same mistakes or create new problems.

 

I reckon this episode could perhaps be its most serious case to date ; or it could be more widely dissected upon nowadays due to these brilliant online forums !

 

Imagine stretching out your hand asking for RM2b and in the same breathe declare you expect to dump another RM1.7b during the next 12 months. My calculator rounds it off to RM4.66 million a day, RM194k every hour, RM3,233 every minute !

 

And to cap it off, there is this request for 'no interference' in its operations.

 

How do these people reconcile fantasy and reality so seamlessly - fascinating !!

 

Yeah I think of the same thing as you Bing Chu.

 

So long as the idea of "government backup" is around, it is likely that they will ask the government to bail them out again. Perhaps now it is clear as water as to what lead to the break up of MSA. Obviously one is looking to take care of the benefits of their own people and the other one is more about commercial reality. SIA is also a very insightful airline, unlike her counterpart MAS, who is more of a follower.

 

The government is very likely to help MAS anyway, just counting the number of people MAS have employed.

 

Anyway, these screw ups will no doubt be shared by Malaysian tax payers (not including me) or be financed through foreign debt.

 

 

 

 

[Bing Chu 0]

The government is very likely to help MAS anyway .....

Yeah, I guess the reality is such, though 'help' would be an understatement of the highest degree in my books !

 

All in all, I reckon the Malaysian govt needs MH around just as much as MH needs the govt to be generous. The govt has its own agenda for development of the aviation industry, of which I reckon MH plays a pivotal role. AK for all its recent success may well remain an interesting side-kick.

 

Reason ? AK is not grovelling for money from the govt - hence much less inclined to follow orders as they are barked out.

 

Ah, the power of money !!

[KK Lee 5]

 

Mas business model is 70's, inefficient and non-commercial.

 

Althought Mas is trying to attract premium passengers with better inflight service but have failed to provide what customers really need i.e. convenience schedule and connection. It is not at all surprise that those expensive upgrade are failing to bring in the expected yield.

 

It is better for Mas to work with alliance and focus on a few European hubs (i.e. LHR, AMS and FRA) than flying to every major cities.

 

As for the Indian routes, Mas is purely inefficient and over cost.

 

As long as Mas is seen as a Umno coffer and redundancy is not made, it is unlikely Mas can be profitable in the long term.

 

 

 

[Seth K 3]

Surprise, surprise, surprise..........MAS will keep Rome. LHR, AMS and Paris will remain yet others will be axe which I think, VIE, ZRH, MAN, FRA- I don't know if this is from reliable source?@#$%^&*

[Fairul 0]

if MAS drop MAN, then this is great opportunity for Thai since TG gonna start service to MAN

[Keith T 2]

Surprise, surprise, surprise..........MAS will keep Rome. LHR, AMS and Paris will remain yet others will be axe which I think, VIE, ZRH, MAN, FRA- I don't know if this is from reliable source?@#$%^&*

 

Might well be true.

 

FCO - Aitalia hub

LHR - high yields and well..you just don't stop flying there...

AMS - KLM hub

CDG - AF hub

[S V Choong 4]

Will AKL be safe from being axed? Thats what I am more concerned about. 2-3 years ago, MAS was thinking of axing AKL altogether as yield was poor. Or is MAS thinking of KUL-BNE-AKL again?

[KK Lee 5]

 

If Mas is axing FRA but keeping Rome is because the Mas GSA in Italy is owned by a royalty.

 

http://www.mggpillai.com/sections.php3?op=...cle&artid=13363

 

The new kid on the block operating without political interfering? I doubt it but for sure, he will be given a datukship soon.

 

 

 

[Keith T 2]

http://www.flyertalk.com/forum/showthread.php?p=5411199

 

Interesting discussion in Flyertalk about MH's restructuring.

 

I too wondered about FCO as MH's presence there isn't too strong. Cynicism aside, it made sense when you think about their new emphasis on hubs and spokes - they would be able to reach many destinations in SE Europe by codesharing on Aitalia. That's assuming the latter doesnt go under before MH joins ST of course!

[Pieter C. 5]

if MAS drop MAN, then this is great opportunity for Thai since TG gonna start service to MAN

 

 

Will AKL be safe from being axed? Thats what I am more concerned about. 2-3 years ago, MAS was thinking of axing AKL altogether as yield was poor. Or is MAS thinking of KUL-BNE-AKL again?

 

Assuming MH will join Skyteam eventually, MAN can be served thru AMS...lot's and lot's of flights there per day by KLM (as well as many other UK destinations !!!)...

AKL should be kept, once in Skyteam, as, otherwise no Europe/New-Zealand connection by ST-partner in the offering (maybe via SEL, but that's considered a big "de-tour" by most Europeans: they'd rather transit at KUL or SIN on their way to/from N-Z)...

[Naim 6]

...

what happen to MAS headquaters right now?

 

If you have MYR130mil to spare, take a look at this:

http://www.nst.com.my/Weekly/PropertyTimes...100416/Article/

 

More firesale here:

http://www.bernama.com.my/bernama/v3/news_...s.php?id=174639

 

.ny

[Naim 6]

Here we go!

 

.ny

 

+++

 

March 03, 2006 22:31 PM

 

MAS To Implement First Phase Of Route Rationalisation

 

KUALA LUMPUR, March 3 (Bernama) -- Malaysia Airlines (MAS) will implement the first phase of its route rationalisation programme from March 26.

 

In a statement Friday, the national carrier said the first phase will involve rationalisation of the following existing frequencies:

 

* Twice weekly London-Langkawi-Kuala Lumpur B747 one way flights;

* Twice weekly London-Penang-Kuala Lumpur B747 one way flights;

* Twice weekly Sydney-Kuching-Kuala Lumpur B777 one way flights; and

* Twice weekly Kuala Lumpur-Kuching-Perth A330 return flights.

 

From March 26, these long haul flights will be realigned to operate direct between the Kuala Lumpur International Airport (KLIA) and the cities of London, Sydney and Perth.

 

In addition, the current thrice-weekly Kuching-Kuala Lumpur-Frankfurt B777 return flights will be operated Kuala Lumpur-Frankfurt return from the same date.

 

MAS will use its existing Malaysian domestic services between KLIA and Langkawi, Penang and Kuching to provide immediate connections for the realigned long haul international flights.

 

This rationalisation is part of the national airline's business turnaround plan to refocus from a largely point-to-point carrier to a world-class connecting carrier with a major hub in KLIA.

 

Given the existing market realities, MAS said its flight operations will gradually shift from point-to-point network to a "hub and spoke" network, thus increasing its competitiveness to connect as many core markets as possible in Malaysia and internationally.

 

The airline released its business turnaround plan on Feb 27 this year which is aimed at achieving sustained profitability by going beyond expectations in five thrusts -- flying to win customers, mastering operational excellence, financing and aligning the business on profit and loss, unleashing talents and capabilities, and winning coalitions.

 

MAS currently operates the following weekly international frequencies -- Kuala Lumpur-London with 18 flights; Kuala Lumpur-Perth with 9 flights; Kuala Lumpur-Frankfurt with 7 flights; and Kuala Lumpur-Sydney with 14 flights.

 

-- BERNAMA

[Isaac 0]

Whatever MAS are going to do under this restructuring plan, i just hope MAS will never ever take away the generous pitch (34") from the Economy Class fliers.

 

Good luck !

[Seth K 3]

Whatever MAS are going to do under this restructuring plan, i just hope MAS will never ever take away the generous pitch (34") from the Economy Class fliers.

 

What do you mean.............I don't think MAS going to reconfigure their economy seats with less than 34" seat....That's a waste