Imran K. 0 Report post Posted March 3, 2006 Hi guys, I was chatting with Gibby this evening, and we came onto the topic of MAS cancelling the KCH-PER extension. Subsequently, we discussed the motivations from both parties (Malaysia and Australia) with regards to the implementation of such a strange route, and I was told that MAS was given an x amount of slots into Australia, whilst Qantas was granted unlimited slots into Malaysia. After the initial shocker from my end ( ), we discussed the possibilities of QF operating to LHR through KUL. The main points which came up were the tax breaks, and unlimited slots...but the pax volume worried us a little. What do you think? Do you think it would be feasible for QF to operate through KUL? Are the tax breaks and unlimited slots a big enough motivation? Let's create a healthy debate. Share this post Link to post Share on other sites
Keith T 2 Report post Posted March 3, 2006 (edited) Hi guys, I was chatting with Gibby this evening, and we came onto the topic of MAS cancelling the KCH-PER extension. Subsequently, we discussed the motivations from both parties (Malaysia and Australia) with regards to the implementation of such a strange route, and I was told that MAS was given an x amount of slots into Australia, whilst Qantas was granted unlimited slots into Malaysia. After the initial shocker from my end ( ), we discussed the possibilities of QF operating to LHR through KUL. The main points which came up were the tax breaks, and unlimited slots...but the pax volume worried us a little. What do you think? Do you think it would be feasible for QF to operate through KUL? Are the tax breaks and unlimited slots a big enough motivation? Let's create a healthy debate. As has been pointed out by MAS's own turnaround plan, the premium market to and from Malaysia isn't very big compared to BKK and SIN. KUL could however sustain a healthy leisure market - making it feasible for JQ to operate there. Hence QF would need to sell very cheap business class fares if they were to operate via KUL with an acceptable load factor. This would in turn canibalise its premium traffic on its SIN and BKK routes as people would simply purchase a cheap business class ticket to KUL then interline to an MH/SQ/TG shuttle to BKK or SIN. Decent loads but terrible yields were the primary reason why QF and BA both left KUL. And also notice how LH has to make KUL a tag-on to BKK in order to operate the route profitably. Actually it was BA that prompted the mini exodus of KUL as for some reason airlines seem to take BA's lead. I was told of the extensive pleas made by the Malaysian government for BA to stay as they knew that once BA left, others would immediately follow. BA did try everything to make KUL work however it was the start of an era in BA's history where profits matterred more than the prestige of flying the British flag everywhere and anywhere. Edited March 3, 2006 by Keith T Share this post Link to post Share on other sites
KK Lee 5 Report post Posted March 3, 2006 Furthermore, about half of Malaysian population are avoiding travelling on foreign airlines because of worry on 'non-halal' food, and operation cost at KLIA is not cheap. Hence, market size in Malaysia is a lot more smaller amd unattractive than people assumed. Share this post Link to post Share on other sites
Seth K 3 Report post Posted March 3, 2006 I read somehwere that if a new airline fly to KUL, they will get free ??????............anyone knows out there? Share this post Link to post Share on other sites
Imran K. 0 Report post Posted March 4, 2006 Furthermore, about half of Malaysian population are avoiding travelling on foreign airlines because of worry on 'non-halal' food Be that as it may, look at how many Malaysian's fly on SQ and TG.... Share this post Link to post Share on other sites
