Y. J. Foo 0 Report post Posted March 10, 2006 (edited) KUALA LUMPUR, Thurs. The long-awaited decision on which airline operates domestic routes in the country has been made. The New Straits Times understands that a Cabinet committee today decided that national carrier Malaysia Airlines (MAS) will concentrate on flying to a few select domestic destinations while budget carrier AirAsia Bhd will operate the remaining rural and domestic routes. The decision will end nearly two years of wrangling between MAS and AirAsia over the domestic routes. The committee chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi decided that MAS be allowed to only operate flights to premier domestic routes such as Penang, Kuching, Kota Kinabalu, Alor Star and Langkawi, the sources said. Some of these destinations tie into MAS’ international routes’ network. The details of the decision are expected to be fine-tuned and announced later, the sources added. The decision will remove an obstacle that has divided the two carriers for so long and allow them to move on and focus on providing more efficient and cheaper services to the public. MAS and AirAsia have both long declared that they want to operate loss-making domestic air services that are owned by Penerbangan Malaysia Bhd (PMB), which is also the parent company of MAS. MAS now operates all domestic services on behalf of PMB and is reimbursed for operational costs in return for giving PMB all the revenue generated from the domestic operations. MAS has been losing millions of ringgit on many domestic routes it flies to. AirAsia, which says it can make these loss-making routes profitable, has been appealing for some time to the Government to give it a chance to do so. The Cabinet committee’s decision will be a win-win solution for MAS and AirAsia, the sources said. "This is the best way for both to leverage on their strengths. MAS will then be able to focus on high-yielding international and domestic flights while AirAsia can further develop its no-frills, affordable flights to Malaysians," one source said. Source But will AK take over those Twin Otters?? Edited March 10, 2006 by Y. J. Foo Share this post Link to post Share on other sites
Seth K 3 Report post Posted March 10, 2006 Yer lah, EK wants to fly "rural"routes? Share this post Link to post Share on other sites
Andrew K 0 Report post Posted March 10, 2006 I'm surprised that JHB isnt there. Good place for picking up Singaporeans, non? Share this post Link to post Share on other sites
Raj 0 Report post Posted March 10, 2006 This means that they gonna get rid of quite alot of 734's rite.. Y. J. Foo, I don't think AK is gonna take over the twin otters..And in another post it said that they were gonna get rid of all the small airports in sarawak..Meaning twin otters are the one that fly to these small airports..So maybe twin otters gonna go.. Share this post Link to post Share on other sites
S V Choong 4 Report post Posted March 10, 2006 It means we will see MAS B734, Fokker F-50s and DHC-6 in AK colours and highly qualified MAS pilots leaving MH for AK. Who knows, the grass might be greener on the other side! So AK will become the sort of national carrier? Say bye bye to MAS and say Hello to AK, sob sob.... Share this post Link to post Share on other sites
Radzi 2 Report post Posted March 10, 2006 ......and highly qualified MAS pilots leaving MH for AK. Not so sure about that Share this post Link to post Share on other sites
Imran K. 0 Report post Posted March 10, 2006 Dubai is a nice place too for highly qualified MH pilots.... Hmmm...Looks like AK is proving its worth to the world! Share this post Link to post Share on other sites
Min Chun 0 Report post Posted March 10, 2006 oops..hope this really make both airlines profitable..let's have look how will it be.. Share this post Link to post Share on other sites
Rozhan 0 Report post Posted March 10, 2006 The impact on the staff will be severe. Where will they go then? Share this post Link to post Share on other sites
Azuddin 1 Report post Posted March 10, 2006 i hope some of those 734 not gonna end up in Mojave. if MH let them go, hope that they will find a new home quickly. Azuddin Share this post Link to post Share on other sites
S V Choong 4 Report post Posted March 10, 2006 s#1t man, I don't hope that this will be the end of our national carrier!! But the government should learn by now that politics and business cannot be mutually inclusive!!! Will MAS follow the footsteps of Garuda?? Look at Garuda these days.......sad......... Share this post Link to post Share on other sites
Ruiz Razy 1 Report post Posted March 10, 2006 I hope "split and key routes means just direct services to state capitals from KUL such as JHB, AOR, TGG, KBR, BKI, KCH, PEN and LGK. It that's the case ...it's not that bad. But if MH is totally out from the above, then our aviation industry is really bad and substandard. Share this post Link to post Share on other sites
Keith T 2 Report post Posted March 10, 2006 s#1t man, I don't hope that this will be the end of our national carrier!! But the government should learn by now that politics and business cannot be mutually inclusive!!! Will MAS follow the footsteps of Garuda?? Look at Garuda these days.......sad......... On a brighter note, let's hope MH follows the path of NZ - rebirth! Share this post Link to post Share on other sites
W Goh 0 Report post Posted March 10, 2006 Well at least they're still flying to KCH. Somehow the thought of flying in AK narrowbodies for the next 3 years doesn't seem to appeal to me...Bro Azahan and JKong might beg to differ though Share this post Link to post Share on other sites
Ignatius 4 Report post Posted March 10, 2006 Woo hooo.. AK AK AK AK! Share this post Link to post Share on other sites
Sim Lim Shen 0 Report post Posted March 10, 2006 s#1t man, I don't hope that this will be the end of our national carrier!! SV, let's not forget that AK is a public listed company in Malaysia, with the Malaysian public being its major shareholder, and flying with a Malaysian flag on its fuselage. So it is essentially one of Malaysia's national carrier, isn't it? Share this post Link to post Share on other sites
S V Choong 4 Report post Posted March 10, 2006 SV, let's not forget that AK is a public listed company in Malaysia, with the Malaysian public being its major shareholder, and flying with a Malaysian flag on its fuselage. So it is essentially one of Malaysia's national carrier, isn't it? Well suppose so.... but the definition of flag carrier can be quite different. Air Asia might be a de-facto national carrier. Things get a bit more confused when you see Air Asia of Thailand and Air Asia of Indonesia. Suppose the next time I fly BKI-TWU and BKI-SDK or SDK-TWU will be on AirAsia.com..... Share this post Link to post Share on other sites
Bing Chu 0 Report post Posted March 10, 2006 Doesn't mention anywhere if AK will still be allowed to do the 'key routes' I can't imagine AK willing to let go of PEN, KCH & BKI though. Hey SV, why bother with BKI ? Just go "rest of the world"-KUL-TWU/SDK !! Hub and spoke the way to go ! Share this post Link to post Share on other sites
Benjamin Ng 0 Report post Posted March 10, 2006 Haha good seeing both of our country airline working up together... Share this post Link to post Share on other sites
Bing Chu 0 Report post Posted March 10, 2006 Haha good seeing both of our country airline working up together... You don't honestly believe in the media hype about MH & AK 'working together' do you ?! In the real business world, smile and shake hands with your competitor by all means. Make sure you get hold of a big stick behind your back all all times though ! Share this post Link to post Share on other sites
Isaac 0 Report post Posted March 10, 2006 Suppose the next time I fly BKI-TWU and BKI-SDK or SDK-TWU will be on AirAsia.com..... Seems like that would be the case ...... I can hear many rich Malaysians screaming now ...... Share this post Link to post Share on other sites
Aaron Goh 1 Report post Posted March 10, 2006 MAS now operates all domestic services on behalf of PMB and is reimbursed for operational costs in return for giving PMB all the revenue generated from the domestic operations. MAS has been losing millions of ringgit on many domestic routes it flies to Doesn't make sense at all. If reimbursed, then how can make lose some more?????????????? Can someone clarify what it means????? Share this post Link to post Share on other sites
Bing Chu 0 Report post Posted March 10, 2006 Aaron, Somewhere in the MasWay plan, the current arrangement between MH vs PMB is briefly mentioned, along with two other options being considered (all according to MH's side of story, remember) Goes on to describe 2005 as a year MH's domestic operations lost money big time, on behalf of PMB, on behalf of Malaysian govt. Goes on to say Malaysian govt is not keen to continue with current arrangement (can read no change, no gain, more pain ?) Another option mentioned was for AK to take over all domestic routes - a pill too bitter for authors of the report to contemplate beyond its mere mention The last option is the one being pursued by MH now, whereby they take full responsibility of P/L and impose 'hands off' criteria on its operations Hope I have not muddled the issue further ! Share this post Link to post Share on other sites
S V Choong 4 Report post Posted March 10, 2006 (edited) I think government intervention plays a strong role with MAS, I heard from Sing Yew that the political connection is also strong. MAS will need to cut these ties (as it will incur a cost to MAS) and seems like it won't be an easy job for Idris Jala to change all these. Obviously the introduction of the whistle blowing policy had highlighted these issues - indirectly. I think it is better for MAS to have been bought by a business tycoon like Tony Fernandes who successfully turned over Air Asia. Someone who really understand what business, profit means. But with the 'national' pride and the chain of political connection, I don't see this happen anytime soon. Good luck, Idris Jala, it will be a difficult task for you. But for now it seems MAS way is the probably the only way, so from now on it is either MASway or the highway. Wow, my 1000th post.....now a platinum member. Gavin or Pieter, any platinum card for me? Edited March 10, 2006 by S V Choong Share this post Link to post Share on other sites
S V Choong 4 Report post Posted March 10, 2006 Hey SV, why bother with BKI ? Just go "rest of the world"-KUL-TWU/SDK !! Hub and spoke the way to go ! True, but for my situation (departing from AKL), it is still convenient for me to fly MAS. Especially the KUL-TWU on MH2662, otherwise it means I have to stop at BKI twice! Now it means I have to purchase a sector fare by Air Asia.com. I have never flown with Air Asia.com before but now I am glad that I am given a chance . Seems like that would be the case ...... I can hear many rich Malaysians screaming now ...... If MAS had taken the correct step like what Air NZ had done years ago. Reventing herself from a full fledge carrier to a semi-LCC carrier, I believe they would not have landed on the situation today. Air NZ's domestic does not have first class very much like an LCC with online booking facility. MAS seeked to challenge Air Asia with their full fledge service when the income level an average Malaysian is not particularly high, which means MAS only either attracted a limited amount of rich customer who would rather pay full fledge service and those who booked Air Asia's flights too late and left with no choice but to fly with MAS, especially during the peak season. MAS has been lacking in intelligent leadership. MAS' business model is old like from the 1970s, which in someway is very true. Share this post Link to post Share on other sites
