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Mohd Suhaimi Fariz

MAS Privatisation

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Not going to happen...

I suspect it may have escaped your attention they are Malaysian entities operating in Malaysia under Malaysian laws ..... :)

 

Anyway, if we can recall TSTF's declaration about how his health vastly improved after unwinding of previous merger, and the 'never again' quip; now quoted in TheEdge article as having declined to comment when contacted ...... you knowlah very likely something is brewing :)

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I suspect it may have escaped your attention they are Malaysian entities operating in Malaysia under Malaysian laws ..... :)

 

Anyway, if we can recall TSTF's declaration about how his health vastly improved after unwinding of previous merger, and the 'never again' quip; now quoted in TheEdge article as having declined to comment when contacted ...... you knowlah very likely something is brewing :)

Of course, we should never say never...

 

But Airasia X is now shaping up nicely - Thai Airasia X is flying and Indonesia Airasia X has taken delivery of its first A330. Malaysia Airasia X has just placed a massive order for 50 A330-900neo aircraft.

 

So I am now asking - what will injecting MAS into Airasia X do to benefit the combined entity? Airasia X is only doing medium to long haul routes. So MAS short haul and Firefly does not fit into its plans. Morever, Airasia X will have more flavours - Airasia X India and Japan are on the cards.

 

The only thing I can see Airasia X wanting is MAS' rights to destinations - e.g. two slot pairs at LHR....

 

I think the staff are the biggest stumbling block. All those MAS staff who would like to work for Airasia have already left. Those who chose to stay with MAS will never ever want to have Tony Fernandes as the boss.

 

As for him being tight lipped these days - he learnt his Twitter lessons. As such, he is keeping things close to his chest nowadays. Recently, he has advised Lufthansa not to go into the LCC business as FSCs and LCCs don't jive.

 

Lets see if he takes his own advice...

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The only thing I can see Airasia X wanting is MAS' rights to destinations - e.g. two slot pairs at LHR....

 

 

They should be looking at other alternatives to get LHR slot pairs. Virgin perhaps?

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Saving the airline has already exceeded the amount Malaysia spent bailing out its biggest tollroad company in 2001, following the Asian financial crisis in the mid 1990s.

 

A fourth state cash injection will buy time for Malaysian Air to improve its business by reducing its fleet size and headcount, according to Jerry Lee, an analyst in Kuala Lumpur at RHB Research, a unit of the nation’s fourth-largest lender, RHB Capital.
The company could narrow its losses by 80 percent by 2015 if it trimmed 10 percent of its seat capacity, 20 percent of its staff costs and 10 percent of its operating costs, he said by phone yesterday.
More from;
Wonder which routes are bleeding MH? FRA, NRT, BKI, KCH?

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AKL should be on top of the list.

 

Why and how?

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Yup why AKL?SQ is going to be daily A380 SIN/AKL.

 

MH should eat the humble pie and approach SQ to code share with SQ on long haul services (remember passages,MH,SQ CX?). If they can achieve that then the frequencies from Europe via KUL/SIN to australia will be equal to that of EK.

Hence pax on SQ website/MH website should be able to book flights to europe via KUL or SIN from australia,thus giving addded flexibility to timing.Only way to beat middle east carriers. Just like the quote of a single matchstick that is easy to snap,but put them together and the dynamics change.

At this point even SQ need some help,hence an ideal partnership.

For comparison,EK has 5 A380 services to London daily,With MH and SQ services combined,is also 5 A380!

This will also give value to MH brand image which is in dire straits.

Edited by jadivindra

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I apologise for digging up this 2nd biggest thread in MW from its long sleep but I would like to share some interesting info about the list of destinations that was cut in early 2012.

 

I had a 4 eyes meeting with a spy from the MH Rumour Department yesterday and according to the spy, there are 2 more destinations that were (or probably still are) bleeding but it survived the cut despite being listed down as candidates for the culling to the grand master up high, back then. The 2 destinations are AKL and BNE. The most shocking part is that AKL is the 2nd most unprofitable destination/route at that time, beaten by only CPT-EZE. This route has not only survived but even soared in current times being served by the airline with a daily frequency. We tried to figure out what is the reason behind this prevailing feat but the best that we can conclude is that MH would probably does not want to lose its non stop service to New Zealand. And yes, we did discussed about why BNE and AKL do not being tagged together as well since both destinations were in the list.

 

Another shocking info is that some of the other routes that I personally thought were not making money due to its low frequency and far distance from KUL were actually isn't. IST (currently 3 weekly B772) and FRA (currently 5 weekly B772) were/are profitable.

 

However, there is no mention of TPE (now NRT)-LAX.

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Quite frankly, I can't see how much more MAS' network can be trimmed any further.

 

It's existing European network serving Europe's 4 most important hubs is the bare minimum a full-service carrier should have if it's to maintain any meaningful presence. MAS must stay in Europe. Even if it's not making money, pulling out is actually the easy way out. One only has to look at airlines that gave up Europe for aeons and who are now re-entering it. Garuda and PAL have discovered how difficult it is to regain traffic rights at these hubs and to rebuild their branding. The pain will come back and bite MAS even harder years from now if it exits Europe now.

 

Also, there is no reason why stations like AKL and NRT shouldn't be making money, as these places are still underserved from KUL as compared to other Southeast Asian hubs.

 

The existing routes shouldn't be MAS' problem. Many other things are.

 

The government has to get this right once and for all.

 

This patient is suffering from internal bleeding. Stop handing out plasters.

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Most importantly there are passengers travelling, there are load factors. LAX route for example was cut despite the load factor was about 70%?

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Most importantly there are passengers travelling, there are load factors. LAX route for example was cut despite the load factor was about 70%?

At extremely discounted rate.

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Because you were looking at ex-MYS.

Yup. I've been cheking on flights to London. KUL-LHR return is now more than RM4k. However same flight on same date from SIN-KUL-LHR return is only S$1.1k

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Quite frankly, I can't see how much more MAS' network can be trimmed any further.

 

It's existing European network serving Europe's 4 most important hubs is the bare minimum a full-service carrier should have if it's to maintain any meaningful presence. MAS must stay in Europe. Even if it's not making money, pulling out is actually the easy way out. One only has to look at airlines that gave up Europe for aeons and who are now re-entering it. Garuda and PAL have discovered how difficult it is to regain traffic rights at these hubs and to rebuild their branding. The pain will come back and bite MAS even harder years from now if it exits Europe now.

 

Also, there is no reason why stations like AKL and NRT shouldn't be making money, as these places are still underserved from KUL as compared to other Southeast Asian hubs.

 

The existing routes shouldn't be MAS' problem. Many other things are.

 

The government has to get this right once and for all.

 

This patient is suffering from internal bleeding. Stop handing out plasters.

Part of the problem is that MH does not have the right aircraft to serve AMS/FRA and AKL routes. They should immediately place purchase or lease orders for the A330-900neo so that this can be used to improve yields on these routes.

 

MH may also consider using the A330-900neo on their longer regional routes and let the existing fleet of A330-300s ply the shorter routes.

 

The B777s have seen better days and can be retired once more economic aircraft is available.

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Giving up Europe means giving up on the A380s. Unless PMB can secure a buyer, I don't think it is even a very remote alternative solution for MH no matter how unprofitable the routes are.

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believed if there's a "New" privatlsed MAS, air asia shd have at least a 30% stake in MAS and its expertise in how to operationally run a airline. Doubt MAS will code share with SIA partner SIA or even allow SIA to buy into MH for obvious political reasons.

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First and foremost, the airline need to be given a free hand to run its operation with very minimum interference from the Government.

However, this is almost impossible because when it comes to making an operations more efficient, it more often than not involves trimming down the workforce, and cutting down if not out a list of Government favoured suppliers. Like the national car makers, it can't be effective and efficient because it needs to take care of the Government's core needs, to provide employment.

 

MAS partnering with AX can be a good combination, provided it is run as a business, and not a social givers.

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Malaysia Airlines in brand overhaul after MH17 and MH370
The beleaguered airline considers a name change in an attempt to repair its reputation after the downing of flight MH17
Malaysia Airlines is likely to change its name as part of a radical overhaul in the wake of the death of 298 passengers in a missile attack on a flight over Ukraine.
The Malaysian flag carrier, majority-owned by the government, will also seek new investors to rebuild its business after two major tragedies within six months.
Work has begun on a strategic review that will restructure the airline’s routes and expand ousourcing to increase profitability.
Sources said additional private investment for the airline could come from rival aviation groups.
At the same time, Malaysia Airlines is also calling for a single global body to monitor threats and decide where civilian aircraft are allowed to fly.
Writing in The Sunday Telegraph, the airline’s commercial director Hugh Dunleavy insists that despite the “tragic loss” of both aircraft, the airline would eventually “emerge stronger”.
Mr Dunleavy adds: “Our majority shareholder, the Malaysian government, has already started a process of assessing the future shape of our business and that process will now be speeded up as a result of MH17.
“There are several options on the table but all involve creating an airline fit for purpose in what is a new era for us, and other airlines.”
Those options are said to include renaming and rebranding the airline, which carries 50,000 passengers a day and employs 20,000 staff.

 

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