Jump to content
MalaysianWings - Malaysia's Premier Aviation Portal
Mohd Suhaimi Fariz

MAS Privatisation

Recommended Posts

Malaysia Airlines Ends Frankfurt Route from late-May 2015

 

by JL

 

 

 

Share this post

Share on Facebook 0 Tweet about this on Twitter 9 Share on LinkedIn 0 Share on Google+ 0 Share on Reddit 0 Email this to someone

 

Update at 0500GMT 20APR15

 

Malaysia Airlines from 29MAY15 is cancelling Kuala Lumpur Frankfurt service, nearly 40 years of operating this flight. The oneWorld member currently operates 5 weekly flights with Boeing 777-200ER aircraft.

 

Reservation for this route is closed as of Monday morning local time (20APR15). Last flight departs KUL on 28MAY15, FRA on 29MAY15

 

MH006 KUL2359 0640+1FRA 772 x13

MH005 FRA1230 0625+1KUL 772 x24

 

MH launched service to Frankfurt around 1977. In Winter 1978/79 season, according to the OAG, it operated one weekly DC10 service with Kuala Lumpur Kuwait Frankfurt London Heathrow routing

Share this post


Link to post
Share on other sites

not sure if this is the right thing by letting go of Frankfurt while keeping some other less "popular" routes. If this sector is not profitable, then even Lufthansa would have scrapped the service to and from KUL long ago - and of course now Lufthansa is smiling all the way as MH no longer fly this route by end May.

Perhaps its best that MH stops all its European flights and code-share with other airlines - save for its London service.

Share this post


Link to post
Share on other sites

If this sector is not profitable, then even Lufthansa would have scrapped the service to and from KUL long ago - and of course now Lufthansa is smiling all the way as MH no longer fly this route by end May.

It's sort of a different market. FRA-KUL is not a huge O&D market (compared to say FRA-SIN). So both MH and LH relies quite a bit on transfer traffic from their respective hubs. And plus, from what I hear is KUL yields aren't that great for LH either. But having that said, I am sure LH will probably stick around KUL longer now that they have a monopoly on this route.

Share this post


Link to post
Share on other sites

The last info leaked by the MH Rumour Department a couple of years back is that IST is more profitable than FRA.

 

Based on the same source, the top 2 most unprofitable destinations in MH international network at that time are AKL and BNE.

Share this post


Link to post
Share on other sites

Khazanah says ‘too early to tell’ if MAS revamp will be successful

http://www.themalaysianinsider.com/malaysia/article/khazanah-says-too-early-to-tell-if-mas-revamp-will-be-successful#sthash.aBQWzxLG.dpuf

 

 

Today, Azman said: "I think it is too early to tell. It is a five-year plan with 20 quarters (to go)."

For sure that is the way to go if you intend to buy time :D

Share this post


Link to post
Share on other sites

It's the failure to continuosly update products that makes a difficult for MH to compete with others. And it's worst now as the updates are being done more regular by "others" compared to 20 years ago.

Share this post


Link to post
Share on other sites

The last info leaked by the MH Rumour Department a couple of years back is that IST is more profitable than FRA.

 

Based on the same source, the top 2 most unprofitable destinations in MH international network at that time are AKL and BNE.

 

Interesting that you said that, both BNE and AKL seem to be problem routes for TG too, I think both routes lack high enough yields.

 

There was another article mentioning BNE, DRW, SYD, MEL, KIX having reduced frequency or total termination. I doubt SYD, MEL and KIX will get the axe, these by far are very important routes for MH, DRW is most likely to face the axe.

Share this post


Link to post
Share on other sites

Malaysia Airlines Expands ETIHAD Codeshares from late-April 2015

 

by JL

 

 

 

Share this post

Share on Facebook 0 Tweet about this on Twitter 3 Share on LinkedIn 0 Share on Google+ 0 Share on Reddit 0 Email this to someone

 

Update at 0420GMT 23APR15

 

Malaysia Airlines starting 30APR15 continues to expand codeshare partnership with ETIHAD, which sees MH code appears on ETIHAD flights on following routes:

 

Malaysia Airlines operated by ETIHAD

Abu Dhabi Dammam

Abu Dhabi Riyadh

 

http://airlineroute.net/2015/04/23/mhey-codeshare-may15/

Share this post


Link to post
Share on other sites

Khazanah says ‘too early to tell’ if MAS revamp will be successful

http://www.themalaysianinsider.com/malaysia/article/khazanah-says-too-early-to-tell-if-mas-revamp-will-be-successful#sthash.aBQWzxLG.dpuf

 

 

For sure that is the way to go if you intend to buy time :D

Time for talk is over. What I am waiting to see is action. If MH can make the staff cuts stick, that is a good first step.

Share this post


Link to post
Share on other sites

Funny how just as a German is taking over the helms, MAS is exiting Germany.

 

MAS, it's cost cutting you need to do, not revenue cutting.

 

Silly move. An example of utter incompetency in making an important route work.

Share this post


Link to post
Share on other sites

T-168 hours until Mueller takes over officially. Let the countdown begin.

 

 

Funny how just as a German is taking over the helms, MAS is exiting Germany.

 

MAS, it's cost cutting you need to do, not revenue cutting.

 

Silly move. An example of utter incompetency in making an important route work.

Exiting FRA is Mueller's call no? Although he is not in yet officially

Share this post


Link to post
Share on other sites

Funny how just as a German is taking over the helms, MAS is exiting Germany.

 

MAS, it's cost cutting you need to do, not revenue cutting.

 

Silly move. An example of utter incompetency in making an important route work.

There's zero feed in FRA for MH. LH is definitely NOT going to channel their passengers to MH & airberlin's presence in FRA is minuscule for MH to benefit. There's only so much cost cutting that can be done before it becomes untenable.

 

Go ask Qantas how they're doing after loping off their EU network bar London.

Share this post


Link to post
Share on other sites

Yes, a lot of MH's international routes are flown not because of a sound business case. They are flown for prestige and for political reasons, e.g. how many Malaysians go to EZE regularly?

 

MH needs to have a route network based on business priorities rather than for showing off.

Share this post


Link to post
Share on other sites

Yes, a lot of MH's international routes are flown not because of a sound business case. They are flown for prestige and for political reasons, e.g. how many Malaysians go to EZE regularly?

 

MH needs to have a route network based on business priorities rather than for showing off.

 

With over 70% of EK, EY and QR pax are trasnit, MH shouldn't be limited to Malaysians or O&D from KUL only. MH failed largely because;

 

1. Didn't offer daily or multiple daily to many destinations

2. Aircraft capacity didn't match with demand

3. Either arrival or departure time was not suitable for pax live beyond the O&D city boundary.

4. Regional connection at KUL was not synchronize with intercontinental

5. Didn't offer code share (before joining OW).

6. Bloated headcount and overhead

7. Bean counter place KPI ahead of pax need

 

the list could goes on and on.

Share this post


Link to post
Share on other sites

EZE


 

With over 70% of EK, EY and QR pax are trasnit, MH shouldn't be limited to Malaysians or O&D from KUL only. MH failed largely because;

 

1. Didn't offer daily or multiple daily to many destinations

2. Aircraft capacity didn't match with demand

3. Either arrival or departure time was not suitable for pax live beyond the O&D city boundary.

4. Regional connection at KUL was not synchronize with intercontinental

5. Didn't offer code share (before joining OW).

6. Bloated headcount and overhead

7. Bean counter place KPI ahead of pax need

 

the list could goes on and on.

 

before joining oneworld, MH has such extensive codeshare agreement with other airlines, esp skyteam members, AZ,KL,CZ

but, totally agreed with the rest of your points there.

 

as for EZE, if i recall correctly the flight always around 70% full, with mainly passenger from mainland China. ive seen them boarding 747 when i was working as special pax ground handler before.

Edited by Yang Zulhilmi

Share this post


Link to post
Share on other sites

Putting a destination like Frankfurt into the same basket of destinations like Buenos Aires isn't fair.

 

It's one of the world's major air hubs. Germany is one of Malaysia's most important trading partners. It's also a decent source of business travellers and tourists into Malaysia. And while Frankfurt isn't its largest city, it is Germany's most important one. Hugely affluent too. It's position in the middle of Germany means it remains an ideal catchment area for feeder traffic from Germany's most important and populous regions.

 

Granted, MAS doesn't have the advantage of being in Star Alliance. Airlines like Thai and SIA will always be more competitive there. But that can't and shouldn't be the main factor for not making it work. If that was the case, you might as well cull most of MAS's existing network altogether. Lame excuse.

 

 

There comes a certain point whereby one needs to stop blaming yield as the source of the problem. Rather, as in this case, did the airline do itself any favour?

 

The reasons for the failure of this route isn't down to a lack of demand. KK Lee's outlining of the factors is spot on.

 

And as for the comparison with Qantas. That also misses the mark on several fronts.

 

KUL may not be blessed with the geographical advantage of the Middle Eastern Big 3 hubs. But it isn't perched in a remote part of the world like Sydney or Melbourne either. MAS still has large parts of Southeast Asia and ANZ for it's feeder traffic.

 

It also doesn't suffer from a fragmented and very spread out hub system that Qantas has to contend with (think the big 5 Australian cities that Qantas has to try to serve over 3 times zones) for feeding traffic onto it's European flights. Qantas also suffers from extremely high Australian labour costs. Rubbish airport at Sydney. Slot constraints. Curfews. The list goes on.

 

In a nutshell, one can't use Qantas' situation wholly to justify MAS' shortfalls in Europe.

Share this post


Link to post
Share on other sites

Putting a destination like Frankfurt into the same basket of destinations like Buenos Aires isn't fair.

 

It's one of the world's major air hubs. Germany is one of Malaysia's most important trading partners. It's also a decent source of business travellers and tourists into Malaysia. And while Frankfurt isn't its largest city, it is Germany's most important one. Hugely affluent too. It's position in the middle of Germany means it remains an ideal catchment area for feeder traffic from Germany's most important and populous regions.

 

Granted, MAS doesn't have the advantage of being in Star Alliance. Airlines like Thai and SIA will always be more competitive there. But that can't and shouldn't be the main factor for not making it work. If that was the case, you might as well cull most of MAS's existing network altogether. Lame excuse.

 

 

There comes a certain point whereby one needs to stop blaming yield as the source of the problem. Rather, as in this case, did the airline do itself any favour?

 

The reasons for the failure of this route isn't down to a lack of demand. KK Lee's outlining of the factors is spot on.

 

And as for the comparison with Qantas. That also misses the mark on several fronts.

 

KUL may not be blessed with the geographical advantage of the Middle Eastern Big 3 hubs. But it isn't perched in a remote part of the world like Sydney or Melbourne either. MAS still has large parts of Southeast Asia and ANZ for it's feeder traffic.

 

It also doesn't suffer from a fragmented and very spread out hub system that Qantas has to contend with (think the big 5 Australian cities that Qantas has to try to serve over 3 times zones) for feeding traffic onto it's European flights. Qantas also suffers from extremely high Australian labour costs. Rubbish airport at Sydney. Slot constraints. Curfews. The list goes on.

 

In a nutshell, one can't use Qantas' situation wholly to justify MAS' shortfalls in Europe.

 

Well said :clapping:

Share this post


Link to post
Share on other sites

Japan Airlines and Qantas were both bleeding and needed to take drastic actions. So they cut their networks to the bare minimum to stop the bleeding.

 

I think that this is what MH is also trying to do. When MH recovers from its catastrophic losses, the network will have to be evaluated again and, perhaps, FRA will be returned for strategic reasons then.

 

Meanwhile, MH should code share with its oneworld partners. As a passenger, I will probably like to try out Qatar's spanking new A350s to FRA!

Edited by flee

Share this post


Link to post
Share on other sites

Your last sentence brings about an interesting question, why isn't MAS doing more with its OW partners? Quite puzzling.

 

I have a feeling it has something to do with the fact that the Qantas team-up (their OW sponsors) didn't materialize, meaning MAS is now a lone soldier in the alliance.

Share this post


Link to post
Share on other sites
MAS Can't Recover With Bloated Workforce, Says Think-tank Head


KUALA LUMPUR, May 4 (Bernama) -- Malaysia Airlines (MAS) cannot recover if it continues to have a bloated workforce, according to the head of a local think-tank.


Datuk Dr Chin Yew Sin, who is President of the International Strategy Research Centre, lauded Khazanah Nasional Bhd Managing Director Tan Sri Azman Mokhtar for taking a firm stand in cutting 6,000 jobs as part of the sovereign wealth fund's 12-point Recovery Plan for the ailing national carrier.


"The Recovery Plan provides for a more ideal 14,000 workforce size, and retaining the 6,000 staff earmarked to leave is a recipe for failure.


"This time, it is no longer the financial restructurings as it had undergone before.


"This is a comprehensive and holistic restructuring to stop the national airline from haemorrhaging cash," Chin said.


"This is the final call for MAS after three restructuring exercises. International routes are now being cut.


"More international routes are expected to be taken out as MAS focuses on regional routes while other structural changes are in store in moving towards more profitable regional and domestic routes," he said.


He pointed out that cutting these international routes would not stop MAS from having its presence internationally as MAS is part of the OneWorld Alliance.


"The New MAS cannot be what the Old MAS was, it needs a structural as well as change in its work culture.


"And importantly, the key to turning around MAS is getting the stakeholders on your side i.e. the workers, unions, government, suppliers and all those in MAS' eco-system," said Chin, who is a member of the Malaysian Anti-Corruption Commission's Consultation and Prevention advisory panel.


"This time around, the Government has the political will to turn around MAS. The workforce has to be reduced in order to save MAS.


"I hope the in-house unions will be more sensible and understand the Government's decision to rightsize the airline as this is the last chance to save MAS."


Chin said MAS' ending the Frankfurt route effective May 29 is just the beginning of the shrinking of several more international routes including Dubai, Paris and Amsterdam, and the restructuring of the national carrier in its early stages should not be distracted by requests from 'third parties.'


Among other things, Khazanah's Recovery Plan provides the necessary enabling framework for change, delisting of MAS, moving its headquarters from Subang to Sepang, the MAS Act already passed in Parlliament and the creation of a New MAS to prepare and execute its own detailed Business Turnaround Plan.


Khazanah, which has a 100 per cent stake in MAS, will inject RM6 billion into the national carrier, which is expected to turn its first profit in 2017.


MAS currently flies to around 80 destinations across Asia, Australia, Europe, the Middle East and North America.


OneWorld membership brings together 15 of the world's leading airlines including MAS and around 30 affiliates, serving more than 1,000 destinations in 155 countries and carrying more than 510 million passengers a year -- almost a thousand boarding a OneWorld flight every minute, 24 hours a day.


It operates a combined fleet totalling some 3,500 aircraft and offering more than 14,250 flights a day -- an average of one OneWorld airline departure or arrival somewhere around the world every three seconds around the clock.


MAS's entry adds 16 new destinations into Oneworld's route map, strengthening the alliance's connectivity between key business cities in Asia.


The International Strategy Research Centre, a think-tank that engages in political, economic and cultural research, was set up 16 years ago by a group of academics.

Share this post


Link to post
Share on other sites

×
×
  • Create New...