JNB/EZE Route May Be Money Spinner

[Isaac 0]

MALAYSIA AIRLINES managing director Idris Jala thinks loss-making EZE is a destination he can salvage following a route profitability analysis.

 

The analysis showed that the national carrier can actually make money flying to the Argentinian capital via JNB in South Africa.

 

MAS is looking at raising the fares on the route by 30% and still dominate the route as its competitors are not flying the sector.

 

"I did not exclude it (from the list of destinations to be dropped and reviewed) for reasons of mischief or anything like that." he told Business Times.

 

In the airline's 3-year turnaround plan unveiled last Tuesday, Idris named CCU, AMD, XIY, CTU, FUK, VIE, ZRH, MAN, ARN, FCO, DXB, IST, CAI, BEY as destinations which are being reviewed.

 

He said MAS may not make a lot of money out of the JNB/EZE sector "but if we pull all the levers on pricing, sales and distribution and working out the best schedule going forward and cutting the cost, we can mek money."

 

Idris said MAS has been "testing the waters", selling tickets at a higher price out oF jnb BUT NOT eze.

 

"We are nrgotiating with them (the Argentinians) to increase the fare to equal that sold in JNB because people flying out of JNB are prepared to pay the fare that we think will make the route profitable."

 

MAS will request for financial help to serve internationalroutes that are strategically important to the government but not to the company.

 

"I've to look at the fiduciary interest of this company to make it profitable as a commercial outfit. In fact, the PM said that MAS is not a government department."

 

With the arrival of the A380 beginning next year, MAS will have to exploit that investment to the maximum.

 

"We must focus on hub and spoke concept for Europe. Instead of flying from KUL to 10 points in EU, MAS will consolidate it to 4 points namely LHR, AMS, CDG and FCO.

 

"We cannot stick to point-to-point. If you look at BA in SE Asia, they are not flying to 10 points here, only 2. If they fly to 10 points, it is unlikely they have enough traffic to fill the aircraft of the right premium segment of travelers.

"We have to put the A380 on the main truck likes and then do a lot of bilaterals with many other airlines to bring traffic onto the truck lines," Idris added.

 

 

 

Source : NST

 

 

"We must focus on hub and spoke concept for Europe. Instead of flying from KUL to 10 points in EU, MAS will consolidate it to 4 points namely LHR, AMS, CDG and FCO.

Surprise surprise ! FRA is not in the list. 3 out of 4 cities are SkyTeam hub.

 

 

"We cannot stick to point-to-point. If you look at BA in SE Asia, they are not flying to 10 points here, only 2. If they fly to 10 points, it is unlikely they have enough traffic to fill the aircraft of the right premium segment of travelers.

BA is aiming mainly at front business, so it's different. AF is serving about 5 destinations in SE Asia while SQ have 10 points in Europe, just like MAS.

[Naim 6]

"We must focus on hub and spoke concept for Europe. Instead of flying from KUL to 10 points in EU, MAS will consolidate it to 4 points namely LHR, AMS, CDG and FCO.

 

Surprise surprise ! FRA is not in the list. 3 out of 4 cities are SkyTeam hub.

 

Even more surprising, earlier in the report FCO is listed as being under review.

...

In the airline's 3-year turnaround plan unveiled last Tuesday, Idris named CCU, AMD, XIY, CTU, FUK, VIE, ZRH, MAN, ARN, FCO, DXB, IST, CAI, BEY as destinations which are being reviewed.

...

 

Idris's mistake or misreporting?

 

.ny

[KK Lee 5]

 

He keeps FCO instead of FRA because the GSA in Italy is owned by a loyalty.

 

Doubt he can offline EZE with TM is still hanging around.

 

Guess he will be offered a Datoship soon.

 

[Milla 0]

LOL terminate Frankfurt but continue FCO, those MAS executives must be crazy.

[kandiah k 0]

I was surprised too when I read the article in NST today abt EZE posibly being a money spinner if properly planned.

 

 

Also, there may be a typo error or as usual, some journalist just don't have a good product knowledge; simply blaberring about this and that.

 

 

Who knows !!!!!!!

 

 

 

 

[Seth K 3]

Increase fare by 30% ..........since no other airline fly between EZE and JNB, what the heck, people still use MAS especially for direct flight and luxury on the air(good service lo)

[Khalil Abd Halim 0]

that's great,we'll still be flying "Across 6 Continents"!

[Seth K 3]

that's great,we'll still be flying "Across 6 Continents"!

 

I read news somewhere bout' MAS..........they said MH fliying to more than 5 continents, why can't just say 6?

[Azman MN 1]

If MH can cut cost properly, then any route with a decent load will be a money spinner.

 

 

[M N Fairizuan 0]

Currently we have some new South African stewardesses (new batch) doing their training at the academy plus some new latinas crew (just graduated).

 

 

 

[Pieter C. 5]

Currently we have some new South African stewardesses (new batch) doing their training at the academy

 

Caucasian look or African look ?

[Seth K 3]

I got two white South Afrian fren(girl), they hot..........I hope the new one is White, African pon OK, no prob.

[M N Fairizuan 0]

Pieter, all Caucasian crew.

 

Ermm, guys actually they're South African Airways stewardesses from South Africa doing training at Malaysia Airlines Academy. Most probably 747-400 crew. Sorry my mistake!

 

 

[Jessnor Arif 1]

So any further report on profitability on this route...?

 

Dont know whether it's true or not...that MH still keep KUL-EZE is due to Tun Dr. Mahathir has a Ranch in Argentina..

[Walter Sim 1]

Why Malaysia??

 

SAA coming?

[Fairul 0]

read somewhere this week that SAA will start JNB-EZE later next year...perhaps MAS can code share then...

[KK Lee 5]

 

If SAA is willing to codeshare with MH, it should have done with MH without flying to EZE.

 

Until TM is recalled to his maker, no one will dare to terminate EZE.

 

With so much political interference, that’s why can’t have much hope or expectation on MH’s rationalization, big bang or what not.

 

 

[Seth K 3]

If SAA is willing to codeshare with MH, it should have done with MH without flying to EZE.

Or SAA can codeshare with MH to EZE using MH metal

I really hoping MH didn't drop the African route at least until next year since it will be one of my flight option to Nigeria(KUL-CPT/JNB/LOS). AFAIK, MH route to African cities from Asia vv has contracts with major oil companies, not sure about the it now, but EK offered same deal sometimes ago So much competition!!

Edited December 17, 2006 by Seth K

[KK Lee 5]

I really hoping MH didn't drop the African route at least until next year since it will be one of my flight option to Nigeria(KUL-CPT/JNB/LOS). AFAIK, MH route to African cities from Asia vv has contracts with major oil companies, not sure about the it now, but EK offered same deal sometimes ago So much competition!!

 

Believe it is more convenient to travel from KUL to LOS via DXB by EK, unless you are planning a side trip in JNB.

 

If you insist to take MH, it is possible on KUL/DXB sector but may be more expensive and hassle.

 

[Sandeep G 1]

An exotic route for an airline with exotic tastes hehehe

 

EZE/GIG would be another interesting step. Given the fall of Varig, perhaps some Asian carriers could do well on this sector??? Maybe MAS should be bold and petition for flights between East Coast Australia (i.e. SYD) to South America (GIG).. there are plenty of South Americans in Australia and the operating costs are too high for Australian airlines. IIRC, LanChile is the only South American airline to operate to Australia..

 

Just a wild suggestion

[Sing Yew 1]

An exotic route for an airline with exotic tastes hehehe

 

EZE/GIG would be another interesting step. Given the fall of Varig, perhaps some Asian carriers could do well on this sector??? Maybe MAS should be bold and petition for flights between East Coast Australia (i.e. SYD) to South America (GIG).. there are plenty of South Americans in Australia and the operating costs are too high for Australian airlines. IIRC, LanChile is the only South American airline to operate to Australia..

 

Just a wild suggestion

 

Aerolineas Argentina operates SYD-AKL-EZE as well.

 

[Jessnor Arif 1]

Until TM is recalled to his maker, no one will dare to terminate EZE.

 

can you explain this.. i personally dont understand..

[Seth K 3]

If you insist to take MH, it is possible on KUL/DXB sector but may be more expensive and hassle.

True more expesive than EK, still EK have more to offer on KUL-DXB route than MH.

Edited December 19, 2006 by Seth K