Sarawak Says More Time Needed To Prove MAS Flights Profitable

[Naim 6]

Same sentiment as Penang's CM. I think if a place is attractive enough for visitors, lack of direct flights would not deter them from getting there.

 

.ny

 

+++

 

March 02, 2006 21:09 PM

 

Sarawak Says More Time Needed To Prove MAS Flights Profitable

 

KUCHING, March 2 (Bernama) -- National carrier Malaysia Airlines (MAS) should have given more time to Sarawak to prove that its three international flights via Kuching are profitable before scrapping them, Minister of Urban Development and Tourism Datuk Seri Wong Soon Koh said Thursday.

 

He said Sarawak was disappointed that MAS had decided to cut its international flights from Sydney and Frankfurt and to Perth via Kuching under the airline's turnaround plan announced last Monday.

 

"It is like the chicken and egg situation now. The state government had invested a lot to promote the state aggressively abroad after the introduction of the flights a few years back. The time frame is not enough.

 

"It's regrettable that MAS has cancelled these routes. MAS should have given more time to prove that these international routes will profit the carrier in future although it will take some time. I hope MAS will reconsider," he said to Bernama.

 

The financially ailing national carrier decided to cut all flights via secondary hubs -- London-Langkawi-KLIA, London-Penang-KLIA, Sydney-Kuching-KLIA, KLIA-Kuching-Perth and Frankfurt-KLIA-Kuching -- under the turnaround plan.

 

Wong, who is also Second Finance Minister, said the Kuching-Perth route, which was introduced three years ago, had been popular.

 

"I hope this route will be reinstated as soon as possible," he said, adding that the flights from Sydney and Frankfurt had not been too successful from the beginning.

 

"I admit that these two routes (Sydney and Frankfurt) were not that popular but we need more time to swing the promotional activities," he said.

 

-- BERNAMA

[Radzi 2]

I'd rather have a MAS that don't fly SYD-KCH direct than no MAS at all!

 

I've asked ground staff at KCH on how many passangers are actually flying direct from KCH to FRA or SYD. The answer: very few. The flights are however quite full but the passangers are either domestic KCH-KUL or SYD-KUL direct.

 

And PEN and LGK are doing better actually in ther direct flights, but still not enough.

[Adrian M 0]

I think it's not too bad if MAS able to give each of the routes 1 flight a week to evaluate to see if it's profitable or not.

[S V Choong 4]

Obviously he is more concerned about getting tourists into Sarawak than the survival of MAS. MAS have been flying these unprofitable routes for ages and it is really time to stop them.

[Fairul 0]

like i've said in the other thread, Sarawakian politician will join the list of politicians to express their dissapoinment on MAS route rationalisation...

hm..i wonder who's next ?

 

[Ruiz Razy 1]

Politicians are well known all over the world to make silly remarks for self interest and wanting things their way. Of course it can be done, but they should pay for it!

 

y not make these people pay for the losses incurred and plus say additional 25% for loss of profit potentials should these routes to be kept.

[Naim 6]

Politicians are well known all over the world to make silly remarks for self interest and wanting things their way. Of course it can be done, but they should pay for it!

 

y not make these people pay for the losses incurred and plus say additional 25% for loss of profit potentials should these routes to be kept.

 

Yes, I agree. I really hate seeing them meddling in MAS mgmt right now - just let Idris & gang do the job lah. Remember the bunch of senators who demanded that the MAS bldg not be sold off? These ppl are virtually clueless about running businesses.

 

.ny

 

[Bing Chu 0]

...... These ppl are virtually clueless about running businesses.

Pretty ironic statement, considering who were the people responsible for the billion ringgit losses at MH !

 

As for Mr Jala, I get the impression many of us here see him as a messiah of sort, destined to help deliver MAS out from the dark abyss with this wonderfully authored MAS Way plan. Time may yet prove this to be so - I for one would be overjoyed in such eventuality. In the meantime, I guess it's best to bear in mind words of wisdom from SV, previously posted elsewhere on this forum ;

"Before you jump into a hasty conclusion, give him sometime and see how he performs."

 

[Seth K 3]

"I admit that these two routes (Sydney and Frankfurt) were not that popular but we need more time to swing the promotional activities," he said.

 

Well Mr., every second worth a penny

[S V Choong 4]

just let Idris & gang do the job lah. Remember the bunch of senators who demanded that the MAS bldg not be sold off?

 

Hmm, is it my problem or am I behind of times. Do you have "Senators" in Malaysia? I thought we are pretty much an anglocised country with only Members of the Parliament (PM). Not being sarcastic or anything, I wanna know! BC, can you help?

 

Like BC said, don't see Idris Jala as a Messiah or God, just give him a fair chance and see how he performs. That way we will should be fairly easy to steer ourself back in neutral if things doesn't happen the right way I guess I am just sick of seeing people screwing up MAS, ALL THE BLOODY TIME!

[Naim 6]

Hmm, is it my problem or am I behind of times. Do you have "Senators" in Malaysia? I thought we are pretty much an anglocised country with only Members of the Parliament (PM). Not being sarcastic or anything, I wanna know! BC, can you help?

...

 

Senators are members of the Dewan Negara. More info here:

http://en.wikipedia.org/wiki/Dewan_Negara

 

And the news:

 

Senators Club Members Disagree MAS Sell Building To Recuperate

December 21, 2005 20:01 PM

read on here: http://www.bernama.com/bernama/v3/printable.php?id=172250

 

.ny

[Rozhan 0]

Isn't the domestic sector profit and loss is borne by the gov through Penerbangan Malaysia Bhd (PMB) and not MAS directly?

 

Anyway the sight of B747 at LGK never fail to attract spectators at the perimeter fencing. Too bad it is about to come to an end.

[Bing Chu 0]

SV,

Hope Naim's link cleared up your query - man, you have been away a long time !! Actually, the British still have their House of Lords, the most direct comparison to our Dewan Negara I suppose. One glaring difference, the House of Lords can block the passage of a bill of law outright, our Dewan Negara can only delay - dentureless canines !!

 

Rozhan,

Yes, this arrangement between MH and PMB regarding profit/loss of MH's domestic flight operations seem to be a great mystery to most - worthy of investigative work by Discovery channel or something ! Can someone please provide some insight ?

[S V Choong 4]

Hope Naim's link cleared up your query - man, you have been away a long time !! Actually, the British still have their House of Lords, the most direct comparison to our Dewan Negara I suppose. One glaring difference, the House of Lords can block the passage of a bill of law outright, our Dewan Negara can only delay - dentureless canines !!

 

Thanks both Naim and BC... Yes a long time! 16 years in NZ......

 

Are you in anyway implying that the British still has a say in our legal system?? Thought we are an independent entity on our own.

 

Read that if you are in countries with no Malaysian Embassy or High Commission, you should visit the British High Commission or Embassy to seek help. Thanks to the Commonwealth thing eh?

Edited March 3, 2006 by S V Choong

[Keith T 2]

Thanks both Naim and BC... Yes a long time! 16 years in NZ......

 

Are you in anyway implying that the British still has a say in our legal system?? Thought we are an independent entity on our own.

 

Read that if you are in countries with no Malaysian Embassy or High Commission, you should visit the British High Commission or Embassy to seek help. Thanks to the Commonwealth thing eh?

 

Nope the UK has no say in the Malaysian system. Malaysia is only politically linked to the UK through the Commonwealth, which also gives Malaysian citizens the right to participate in politics in Commonwealth countries, although the level of participation is open to interpretation.

 

I believe Naim and BC were comparing the British and Malaysian systems as opposed to trying to prove a link. And I believe Naim meant that the House of Lords can block Bills originating from the British House of Commons, NOT the Malaysian Lower House. The Malaysian system is based on the British Westminster tradition, but is more democratic, in theory at least, in the sense that the Upper House, which is not elected by the public, cannot deny the democratic mandate of directly elected reps in the Lower House to pass Bills.

 

In Australia we have a mixed US-Westminster system - cutely known as the 'Washminster mutation.' We have a directly elected Senate, with people of every state electing 12 Senators per state. The Senate can block Bills from the Lower House (House of Representatives), and acts as a House of Review. The weird bit is every original state is guaranteed 12 Senators regardless of the population, which corrupts the notion of one vote = one voice, but was neccessary at that time to convince the smaller states to join the bigger ones in federation. Senators' terms are 6 years, half of them go up for election every 3 years along the House of Representatives.

 

A little quirk of the British Commonwealth... the independence of the Commonwealth nations were enshrined in the form of Acts of the Westminster Parliament. I know for a fact that the Australian Constitution was enacted as an Act of the British Parliament. Therefore, the UK can theoretically reclaim its former colonies like Australia and Malaysia by repealing those statutes that established their independence, and send troops over to recolonise the lands. But in practice - not a chance.

Edited March 3, 2006 by Keith T

[Peter Smith 1]

MH126/7 (PER-KCH-KUL rtn) are very popular, however from my general observation, about 90% of the pax were all transit through KCH for our ultimate destination of PER. The pax that did join us were mostly transit passengers off flights from BKI. If MAS plan to completely withdrawl that service all together, they are losing some very big bucks from PER, they should simply make the flight direct.

[Bing Chu 0]

SV,

I think what you thought I was implying has been more than adequately clarified by Keith - heck, he even clarified on stuff I never knew about !

 

Keith,

Are you aware one (at least) of the Australian Senators is of Sabahan origin ? Penny Wong, Labour if I recall correctly. As for the notion of one vote = one voice, it has always been, currently is and will forever more remain just that, a mere notion - anywhere on the face of this earth !! Politicians involved you see.

 

As for UK 'reclaiming' its former territories, my impression is the 'motherland' has been colonized by it's dependants already nowadays - judging by the hodgepodge of Indians, Chinese, Africans etc living there now !!

 

My, aren't we going off topic here !

[Pieter C. 5]

My, aren't we going off topic here !

 

you are.....ain't you afraid I've to raise my pointing-finger again ???

[Keith T 2]

SV,

I think what you thought I was implying has been more than adequately clarified by Keith - heck, he even clarified on stuff I never knew about !

 

Keith,

Are you aware one (at least) of the Australian Senators is of Sabahan origin ? Penny Wong, Labour if I recall correctly. As for the notion of one vote = one voice, it has always been, currently is and will forever more remain just that, a mere notion - anywhere on the face of this earth !! Politicians involved you see.

 

As for UK 'reclaiming' its former territories, my impression is the 'motherland' has been colonized by it's dependants already nowadays - judging by the hodgepodge of Indians, Chinese, Africans etc living there now !!

 

My, aren't we going off topic here !

 

Yeap Penny Wong. She's a member of Labor's Socialist Left and hails from South Australia. Never met her in person though. But then again I'm from the so called 'right wing facists' Labor Unity faction and reside in Victoria.

 

Now where were we...

Edited March 3, 2006 by Keith T

[Bing Chu 0]

We're doomed - Pieter is obliged to hunt us down now !

[Rozhan 0]

Rozhan,

Yes, this arrangement between MH and PMB regarding profit/loss of MH's domestic flight operations seem to be a great mystery to most - worthy of investigative work by Discovery channel or something ! Can someone please provide some insight ?

 

I was thinking that MH 7 is an international flight from LHR to PEN / LGK, but becomes a domestic flight from PEN / LGK to KUL... and PMB bears the profit or loss on that domestic sector. Now with MH stopping it, I suppose the entire flight is regarded as international so MAS has to account for it in its books. In the interview with Idris Jala on TV3's 'The Exchange' just now, apparently MAS lost RM 70 million a year on these flights through secondary hubs.

 

Indeed not much is known on PMB's operations...., especially the part of it managing MAS' domestic operations profit and loss!

[Isaac 0]

Wong, who is also Second Finance Minister, said the Kuching-Perth route, which was introduced three years ago, had been popular.

The KCH/PER sector has been around for more than 5 years, or probably even longer. The flight initially started with only 1x flight weekly.

 

And PEN and LGK are doing better actually in ther direct flights, but still not enough.

Another good reason for MAS to get the 788

 

I think it's not too bad if MAS able to give each of the routes 1 flight a week to evaluate to see if it's profitable or not.

When MAS first introduced the new route, it was operated with only 1 flight a week.

 

MH126/7 (PER-KCH-KUL rtn) are very popular, however from my general observation, about 90% of the pax were all transit through KCH for our ultimate destination of PER. The pax that did join us were mostly transit passengers off flights from BKI.

Wow, perhaps MAS should consider to introduce a new international route (BKI/PER)

 

Anyways, i'm glad that BKI international routes are not in their list. So i guess all the non-stop international flights in/out of BKI are still doing ok. But i really hope MAS will get the 738 (with winglets) soon. To drive the cost down, MAS can simply base several 738 (with winglets) at BKI and fly them to NRT, KIX, ICN, HKG, TPE, PVG, CAN, MNL, KHH. I believe the 772 is a bit too big for NRT and KIX and the 333 for ICN. It will be more profitable to fly to these cities with the much smaller 738 (with winglets) with more frequencies.

 

With the 738 (with winglets), MH can fly to many other international destinations from/to BKI profitably (i believe) such as PER, NGO, FUK, PEK and many more (well, if they ever launch it).

Edited March 3, 2006 by Isaac

[KK Lee 5]

 

The routes that Mas is genuinely losing money are the rural air service, about Rm6 millions a year. The rest are purely inefficient, unproductive and over cost.

 

It is about time for Mas to grow up to spokes and hub routing.

 

Again, Mas business objectives may not be commercial.

 

[H C Chai 4]

The routes that Mas is genuinely losing money are the rural air service, about Rm6 millions a year. The rest are purely inefficient, unproductive and over cost.

 

 

I thought MAS RM1b loss is purely from their international operations and the losses on domestic are absorbed by PMB anyway. Please correct me if I am wrong?

[Seth K 3]

I have to say that their rural services are worthless, most weights are cargo