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Mohd Suhaimi Fariz

MAS Privatisation

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Malaysia Airlines Berhad (MAB) Routes by 01 September 2015 -

 

 

From/To KLIA

 

Domestics

1. Alor Setar

2. Johor Bahru

3. Kota Bharu

4. Kota Kinabalu

5. Kuala Terengganu

6. Kuantan

7. Kuching

8. Penang

9. Langkawi

10. Bintulu

11. Labuan

12. Miri

13. Sandakan

14. Sibu

15. Tawau

 

Asean

16. Bandar Seri Begawan

17. Phnom Penh

18. Siem Reap

19. Denpasar

20. Jakarta

21. Medan

22. Yangon

23. Manila

24. Singapore

25. Bangkok - Suvarnabhumi

26. Phuket

27. Hanoi

28. Ho Chi Minh

 

North Asia

29. Beijing - Capital

30. Guangzhou

31. Shanghai - Pudong

32. Xiamen

33. Hong Kong

34. Taipei - Taoyuan

35. Seoul - Incheon

36. Osaka - Kansai

37. Tokyo - Narita

 

South Asia

38. Dhaka

39. Bangalore (Bengaluru)

40. Chennai (Madras)

41. Delhi

42. Hyderabad

43. Mumbai (Bombay)

44. Kathmandu

45. Colombo

 

Australasia

46. Adelaide

47. Darwin

48. Melbourne

49. Perth

50. Sydney

51. Auckland

 

Middle East and North Africa

52. Jeddah

53. Dubai

 

Europe

54. Paris - Charles de Gaulle

55. Amsterdam

56. London - Heathrow

 

 

From/To Kota Kinabalu

1. Kuching

2. Labuan operations on ATR 72 aircraft through MASwings

3. Sandakan

4. Tawau

5. Shanghai - Pudong

6. Taipei - Taoyuan

7. Tokyo - Narita

8. Perth

 

From/To Kuching

1. Bintulu operations on ATR 72 aircraft through MASwings

2. Miri

3. Sibu operations on ATR 72 aircraft through MASwings

4. Singapore

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MAB to unveil new name, logo and livery next month

 

It is understood that the changes, which include an overhaul of the design and colour of its livery, are part of a plan to shed a negative image many in the international markets have following the twin tragedies of flights MH370 and MH17 last year.

“MAS will get a fresh new look that will include a new name and logo. The changes are basically to address the negative perception of the brand, especially among international travellers following MH370 and MH17,” one source told The Edge Financial Daily.
More:

http://www.theedgemarkets.com/my/article/malaysia-airlines-unveil-new-name-logo-and-livery-next-month

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MAB to unveil new name, logo and livery next month

 

It is understood that the changes, which include an overhaul of the design and colour of its livery, are part of a plan to shed a negative image....

More:

http://www.theedgemarkets.com/my/article/malaysia-airlines-unveil-new-name-logo-and-livery-next-month

 

Am I the only one confused whether a new livery/name change is involved in the rebranding? Just a few weeks back Mueller said it was just going to be a soft rebrand, keeping the same livery and name.

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Mueller's words were not interpreted correctly. Certain news agencies reported A while others reported B. Indeed confusing.

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Malaysian Air Chief Putting Last Touches to Southeast Asia Hub

Malaysia Airlines said a network restructuring aimed at establishing its base in Kuala Lumpur as a hub for travel to fast-growing regional economies including China and Vietnam is 90 percent complete.

“We’re fine-tuning with regard to the frequency pattern, but the capacity-per-destination is fixed,” Chief Executive Officer Christoph Mueller said Wednesday in an interview in London. “The network design was 15 years old and largely driven by traffic from Europe to Australasia.”

 

http://www.bloomberg.com/news/articles/2015-11-04/malaysian-air-chief-putting-last-touches-to-southeast-asia-hub

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Malaysia Airlines' restructuring enters new phase with fleet & possible regional capacity reductions

 

Malaysia Airlines (MAS) has begun a new phase of its long restructuring process, as it starts to reject aircraft leases. MAS transitioned to a new company on 1-Sep-2015, but the restructuring in many respects is far from complete, and will take another year to implement.
MAS still has the flexibility to reject aircraft leases, giving it a benefit similar to US airlines that are restructuring through bankruptcy protection. While MAS cut capacity and head count prior to the transition to the new company, the flag carrier has only begun the process of reviewing its fleet.
A large portion of the fleet is expected to be returned over the next several months. More capacity cuts are possible, particularly in the domestic and short-haul sectors, as MAS has already cut back its network outside Asia to a minimum level.
Pace of MAS restructuring has been very slow

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Malaysia Airlines’ report card coming?

 

MALAYSIA Airlines Bhd (MAB) is expected to release a progress report on how it has fared over the past three months of its existence.
The report card may come out this week or early next week.
It may want to tell the world that all is fine and dandy, so one can expect a positive spin.
However, is it really yielding the results it should?

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Malaysia Airlines Recovery Plan Quarterly Update (1 Sept-30 Nov 15)


Malaysia Airlines Berhad, benefits from encouraging momentum in its first quarter and moves into the next phase of its restructuring.


· In spite of macro-economic headwinds, adverse currency exchange rates and a significantly reduced headcount, Malaysia Airlines saw good and sustained progress.


·The newly incorporated airline started seamlessly on the 1 September as a new legal entity with a new air operator’s certificate


· Network expanded via new global aviation partnership with Emirates while remaining a member of the oneworld alliance


·7 new crew bases will be opened across Peninsular Malaysia, Sabah and Sarawak to improve connectivity and service quality


·A new product strategy with enhanced customer experience will be rolled out over the next 18 months


· Negative trend of revenue per available seat kilometer stopped and reversed


· Cost saving measures and renegotiation of vendor contracts remains main imperative of the turn-around


·Leadership team further strengthened with appointment of Chief Financial Officer, Chief Human Resource Officer and Head of Corporate Finance


·Establishment of Work Council to promote and foster industrial harmony




Sepang, 3 December 2015: Malaysia Airlines Berhad today announced its first quarterly update, since becoming a new legal entity on September 1, 2015. This is in line with its commitment to good corporate governance and full transparency.


Group Chief Executive Officer of Malaysia Airlines Berhad, Christoph Mueller said: "It is very rewarding to see the new team of employees creating a truly new airline, entirely customer focused and commercially led. We still have a long way to go but existing and new partners believe in our success and Malaysia Airlines has been set on a path towards reclaiming its position as one of the world’s leading airlines.


Next phase of restructuring


Malaysia Airlines moves into its next phase of its restructuring through a global aviation partnership with Emirates. The partnership will significantly expand the airline’s global coverage and provide a dramatically extended range of travel options for customers.


Malaysia Airlines will add its code on flights of Emirates to Europe, Middle East, Africa and the Americas. In return, Emirates will add its code on flights of Malaysia Airlines to domestic routes in Malaysia, South East Asia and selective cities across the Asia Pacific region. The partnership will see Malaysia Airlines suspends its Paris and Amsterdam routes from 25 January 2016. The partnership with Emirates will enable Malaysia Airlines’ passengers to continue having access to these destinations, and many more, with the added advantage of better schedules and more frequencies. It will also make it much easier for travelers from all corners of the globe to visit Malaysia and experience its rich culture, nature and Malaysian hospitality. This is one of the airline’s initiatives towards enhancing air connectivity with key priority markets overseas for increased tourist arrivals into Malaysia.


Malaysia Airlines remains a member of the oneworld alliance, providing co-ordination with carriers such as British Airways, American Airlines, Qantas and Cathay Pacific.


New crew bases


Concurrently, Malaysia Airlines will be opening seven new crew bases in Malaysia, with a total of 18 Boeing 737-800s being relocated with locally employed pilots and cabin crew staff to permanent bases in Kota Kinabalu, Kuching, Miri, Labuan, Kota Bahru, Penang and Johor Baru. The move will improve connectivity and service quality on the domestic network and emphasizes the airline’s commitment to the respective states, boosting local economies and fostering inbound tourism. Malaysia Airlines has also applied to extend its rural contract agreement with the Ministry of Transport, to further underline its commitment to rural air service in Sabah and Sarawak.


To ensure convenience and improved connectivity for passengers, Malaysia Airlines intends to reorganise its operations in Kuala Lumpur International Airport (KLIA) to concentrate operations in the main terminal. The plan, expected to be in place by early next year, will mean quicker connections for ASEAN passengers between international and domestic flights. This will mean faster and more reliable baggage transfer and ultimately ensure better customer satisfaction.


Malaysia Airlines has seen an improved on-time performance (OTP) since the seamless transition to becoming a new entity on the 1 September 2015, with 89.8% OTP on the day despite major disruptions caused by the recent haze.


Performance and product improvements


The route optimisation work conducted in the previous quarter has already started to show the anticipated effect. Revenue per available seat kilometer for the quarter has improved year on year with the seat load factor also showing improvements.


Demand out of China and North Asia is showing a positive trajectory, boosted by increased inbound tourism demand. Capitalising on this, Malaysia Airlines has signed an agreement to operate 180 additional charter flights from China to Sabah. Moving forward, the airline will be introducing more charter flights from selected key cities in China beyond the airline’s network, on top of the existing 180, to meet the increased appetite for inbound tourism.


The airline’s charter service has seen great success with the Umrah operations ferrying pilgrims to Madinah on its A380-800. This year saw an increase in capacity from 282 seats to 494 per flight on 45 direct flights from Kuala Lumpur to Madinah.


Greater focus has been given to improving customer service. The quarter saw a new product initiative with the introduction of a premium business class lay flat seat for the A330-300 fleet. The seat marks the beginning of a planned product roll-out of more customer centric, personalised and innovative offerings. The fully flat seat will be introduced from April 2016 on all A330-300 aircrafts. The conversion will be completed by September 2016. Other new and improved product offerings are in the pipeline, including a new catering concept in all classes and on-board Wi-Fi.


The entire customer experience is being re-examined starting with a total refurbishment of KLIA lounges as well as a centralised global customer contact centre where reservations and ticketing will be housed together to ensure faster response times.


IT as an important enabler


A key aspect of improving customer experience will be an overhaul of Malaysia Airlines’ IT systems as the airline looks to become a technology driven company. The airline will be introducing systems for easier and faster bookings both on the website and on mobile applications. A new passenger service system has been put out to tender and, after the final vendor selection, implementation will start in the first quarter of 2016. This will result in a much better booking experience on the company's website and mobile applications. The airline has also signed a contract to introduce AirPas, a state-of-the-art software system, to maximize cost savings from ground operations and audit accurate billing. AirPas has been successfully used by other world leading airlines and the company is looking at a target saving of up to 20% on ground operations over the next 18 months.


The IT strategy has been approved to enable a new data centre. The migration to a state-of-the-art cloud based data centre infrastructure will improve reliability and resilience and data protection.


Centralisation of operations


A move to new headquarters has now been completed with most of the working teams now under one roof in KLIA's South Support Zone. The new working environment allows for better working access and teamwork across the separate divisions. Close proximity of staff has allowed for a new and jointly developed set of values and behaviours upon which the new Malaysia Airlines will operate in future.


Cost saving remains main imperative of the turnaround


Significant cost saving initiatives has been identified across the new aviation group, with its more than 10 subsidiaries. A focal point will be the renegotiation of uncompetitive contracts with suppliers. In a structured process, most vendor relationships will be retendered over the months ahead in order to reduce the number of suppliers and to consolidate purchase volumes for better discounts.


Most aircraft leasing contracts are still in the hands of Malaysia Airline System Berhad which is in administration. The new airline will only permit leasing agreements at competitive market rates. This process of contract renegotiation will continue into 2016.


Enhancing corporate governance


Malaysia Airlines places the utmost importance on transparency, accountability and good corporate governance. The MAB Board of Directors (Board) plays a pivotal role in ensuring these principles across the group. The Board recently approved two new policies - the Malaysia Airlines Group Governance Framework and the Corporate Approving Authority Policy (LOA) - to improve empowerment and accountability.


Malaysia Airlines is working towards a new group structure which will streamline its operations into individual profit centre subsidiaries such as airline, ground handling, cargo, engineering and aircraft ownership. This will ensure P&L (profit and loss) accountability which will unlock the value of assets by driving new levels of operational and financial efficiency. Concurrently the airline is disposing its non-core assets for better management focus on its core business.


Investing in a talent pipeline


The leadership team is complete with the appointment of Omar Siddiq Amin Noer Rashid, as the Chief Financial Officer, Claudia Cadena as the Chief Human Resource Officer and Linda Yeow as Head of Corporate Finance. The quarter also saw new Executive Counsel, Nik Azli Abu Zahar and Chief Commercial Officer, Paul Simmons commence work with the company.


The new team is an important building block in an overall strategy of having world class and diverse talent that reflects the company’s global business and operations.


The development of talent and human capital will be a major focus to ensure a more robust and sustainable organisation. Experienced and industry talent have been brought in to provide on the job training for staff. The end goal is that a future generation of leaders for the airline will be recruited entirely from within. The airline also saw its first leadership training session in the quarter whilst the search for a new Head of the Malaysia Airlines Academy started in earnest.


Strengthening industrial relations


As part of promoting harmony and a constructive dialogue with employees, the Malaysia Airlines Work Council has been created and is expected to be fully established by January 2016. The Work Council aims to provide a platform for employees to brainstorm ideas, voice concerns and ultimately work together with management towards a common goal. The council will have two elected representatives from the separate employee groups which include pilots, cabin crew, engineers, ramp services and cargo handling amongst others. The formation of the Work Council will enable Malaysia Airlines to begin with a new and mutually cooperative relationship between management and employee groups.


“We are working hard to change the structure of the airline fundamentally, from the inside out. This will involve looking at process, efficiency and tighter cost controls. Through diligent execution, we’ve scored some quick wins this quarter. There is still a long way to go towards putting in the foundations for sustainable long term growth, but our progress in the quarter signals a positive trend in the right direction” added Mueller.



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I hope that MAB should allocates total of 18 738 at crew bases consists of non-BSI and MS-series,and dont forget FF series while leaving all BSI (MLM onwards) and MX series 737 at KLIA hub for regional flights.

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Malaysia Airlines Recovery Plan Quarterly Update (1 Sept-30 Nov 15)
New crew bases
Concurrently, Malaysia Airlines will be opening seven new crew bases in Malaysia, with a total of 18 Boeing 737-800s being relocated with locally employed pilots and cabin crew staff to permanent bases in Kota Kinabalu, Kuching, Miri, Labuan, Kota Bahru, Penang and Johor Baru. The move will improve connectivity and service quality on the domestic network and emphasizes the airline’s commitment to the respective states, boosting local economies and fostering inbound tourism. Malaysia Airlines has also applied to extend its rural contract agreement with the Ministry of Transport, to further underline its commitment to rural air service in Sabah and Sarawak.
To ensure convenience and improved connectivity for passengers, Malaysia Airlines intends to reorganise its operations in Kuala Lumpur International Airport (KLIA) to concentrate operations in the main terminal. The plan, expected to be in place by early next year, will mean quicker connections for ASEAN passengers between international and domestic flights. This will mean faster and more reliable baggage transfer and ultimately ensure better customer satisfaction.

 

 

MH should extend local crew base to SIN, CGK, BKK, HKT, PNH, SGN, MES, etc within 2 hours flight time to KUL, so these pax could connect first wave out from KUL.

 

Operating from MBT and Satellite at KUL is a waste of resources and inefficient. Focusing at MTB is long overdue. May mean there will be new Golden lounge at MTB.

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No news on a change in the booking system? Damn it - that's their Achilles heel!

They did mention IT, but nothing specific about booking system.

 

I am also disappointed in the lack of numbers (other than ontime performance). They said RASK improved, so even if it went up 0.1 sen per km, it is still improved. So I am led to conclude that the number is so insignificant that they dare not announce it.

 

MAB still has a long, long way to go....

Operating from MBT and Satellite at KUL is a waste of resources and inefficient. Focusing at MTB is long overdue. May mean there will be new Golden lounge at MTB.

Yes, it makes sense to consolidate resources. MAB's operations are now smaller and there is no point spreading things out.

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Great decision to consolidate the entire MH's operation only at MTB. But I think it can only be successfully implemented once the A380 is decommissioned and LHR is served by the incoming leased A359.

 

Put all the foreign airlines at the Satellite regardless of their aircraft size. MTB should be EXCLUSIVE for MH only. Terminate Satellite Golden Lounge's lease and let other operator take it up (a new bigger and better Plaza Premium Lounge perhaps?)

 

While opening up crew bases abroad should be the strategic thing to do, I think staff cost is a constaint. But does it really cost that much? Bar SIN, all other major ASEAN cities are actually cheaper to operate (lower currency exchange to MYR).

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Now can understand why MAHB wanna extend the MTB 😝

 

The fact that MHZ needs to consolidate operations at the MTB goes to show that behind-door infrastructure at KLIA is in need of upgrading and replacement.. The baggage system has been a perpetual bane..

 

The Emirates deal.. Good to know that there are willing partners. QFA managed a stellar turnaround 18 months after their partnership started

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more 737s! c'mon they should go for 737max then. and get more A333s to ply the regional flights as well. guess their A359 gonna plying long haul to LHR. but still kinda sad to see they let go of the A388s.

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with just 15 A333s and 4 leased A350s in 2017 to replace the A380s, MAS will become a very small player even in the regional market. Khazanah and the govt might as well just shut MAS down completely instead of even having to come u with another few billion dollars to keep such a small airline fleet. Air Asia fleet size incl AAX would already be more than 2 times the size of MAS. And with this restructuring and its limited fleet of aircraft MAS would basically be competing with AK/AAX in the regional market and this will not bore well with MAS.

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more 737s! c'mon they should go for 737max then. and get more A333s to ply the regional flights as well. guess their A359 gonna plying long haul to LHR. but still kinda sad to see they let go of the A388s.

I am sure that the short and medium haul fleet will be modernised at some stage - maybe after 2020 - as they are still very new.

 

Right now, MAB is trying to move its business model from being a kangaroo route focused airline to that of a lower cost regional airline. So domestic flights will now be more aligned to connect to regional flights and flights to DXB (for other worldwide destinations). Current equipment is efficient enough - only the 1990s vintage B777s are relatively high cost.

with just 15 A333s and 4 leased A350s in 2017 to replace the A380s, MAS will become a very small player even in the regional market. Khazanah and the govt might as well just shut MAS down completely instead of even having to come u with another few billion dollars to keep such a small airline fleet. Air Asia fleet size incl AAX would already be more than 2 times the size of MAS. And with this restructuring and its limited fleet of aircraft MAS would basically be competing with AK/AAX in the regional market and this will not bore well with MAS.

MAB has to get back to basics to stop bleeding good money. It is now doing what loss making airlines like JAL is doing - cut out loss making and non strategic routes to stem the losses. Once the business is stabilised, it will have a good platform to expand again.

 

Airasia is an expanding airline, so its growth curve is different from that of MAB. Recently, Airasia's growth has also slowed - this is demonstrated by the postponing of deliveries of new aircraft and the retirement of older aircraft from the fleet. All this is part and parcel of an airline's lifecycle. At this point, MAB's and Airasia are at different points in their respective lifecycles.

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The Emirates deal.. Good to know that there are willing partners. QFA managed a stellar turnaround 18 months after their partnership started

QF is in a joint venture with EK - so it is deeper than what MH is having with them. Maybe at a later stage, the code sharing can progress into a deeper business relationship...

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