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

MAS Privatisation

Recommended Posts

MAB and JAL applies to MAVCOM for joint venture approval covering services between and within Malaysia and Japan.

 

See:

https://www.mavcom.my/wp-content/uploads/2019/04/190425-Proposed-Joint-Business-between-Malaysia-Airlines-Berhad-and-Japan-Airlines-Co.-Ltd..pdf

Malaysia Airlines, JAL ink joint business agreement

Read more at https://www.thestar.com.my/business/business-news/2019/05/27/malaysia-airlines-jal-ink-joint-business-agreement/#sDGzma9OKluJPZZH.99

 

Lets hope that this allows MAB to deploy their A380s to Japan more often.

Share this post


Link to post
Share on other sites

Malaysia Airlines, JAL ink joint business agreement

Read more at https://www.thestar.com.my/business/business-news/2019/05/27/malaysia-airlines-jal-ink-joint-business-agreement/#sDGzma9OKluJPZZH.99

 

Lets hope that this allows MAB to deploy their A380s to Japan more often.

Still subject to regulatory approval, no?

 

The A380 has been removed from regular commercial operations (currently serving Saudi Arabia charter flights only). And if MH gets HND slots, they can't use their 380s there as well as HND is not 380 capable.

Share this post


Link to post
Share on other sites

Still subject to regulatory approval, no?

 

The A380 has been removed from regular commercial operations (currently serving Saudi Arabia charter flights only). And if MH gets HND slots, they can't use their 380s there as well as HND is not 380 capable.

 

I think they use the A388 on the KUL-MED-KUL scheduled flights a few times a week. Also yesterday, they used the A388 on the KUL-HKG-KUL for MH432/433. Maybe they will reinstate the A388 on the KUL-NRT-KUL route with the new agreement. Hope they get to start the HND flights too with a widebody to connect to JLs flights to North America. At present, some flight options requires a change of airports and it is a 90 minute train ride.

Share this post


Link to post
Share on other sites

Hope they get to start the HND flights too with a widebody to connect to JLs flights to North America. At present, some flight options requires a change of airports and it is a 90 minute train ride.

The MY-US market is not huge to begin with. Out of HND, the only North American destinations served by JL are JFK and SFO, and they leave at different times of the day (~10am and ~7-8pm respectively). It is a lot easier to funnel passengers through NRT where most US flights depart and arrive in the late afternoon/evening, which is what NH has been doing with NH815/816.

Share this post


Link to post
Share on other sites

JL is strong at US destinations but weak at EU's. If we were to look at the outbound/inbound of passengers, it would seem EU's traffic is more than US's.

Share this post


Link to post
Share on other sites

Still subject to regulatory approval, no?

 

The A380 has been removed from regular commercial operations (currently serving Saudi Arabia charter flights only). And if MH gets HND slots, they can't use their 380s there as well as HND is not 380 capable.

Yes, Amal will use 4 frames for Haj and Umrah and soon, we will see a peak in such flights. However, during other periods, the A380 is used as a supersub or for increasing capacity during peak travel seasons.

 

I would imagine it would be wise to deploy MH's A380 to NRT and JL can withdraw their flights from NRT and start flights from HND and other points in Japan (e.g. KIX). As this is a joint venture, they can treat all the flights operated by either airline as their own flights. So they can coordinate flight schedules and frequencies.

Share this post


Link to post
Share on other sites

 

I think they use the A388 on the KUL-MED-KUL scheduled flights a few times a week. Also yesterday, they used the A388 on the KUL-HKG-KUL for MH432/433.

A380 on MH 432/433 was a one-off thing. MH72/72 was canceled on 02JUN.

 

The MY-US market is not huge to begin with. Out of HND, the only North American destinations served by JL are JFK and SFO, and they leave at different times of the day (~10am and ~7-8pm respectively). It is a lot easier to funnel passengers through NRT where most US flights depart and arrive in the late afternoon/evening, which is what NH has been doing with NH815/816.

KUL-US (not MY) market can fit in one 737/320 flight a day, with about half of it going to/from LA. Come S20, most of US flights except for a few will be routed via HND (JL/NH are expected to get 6 each plus a handful from their US counterparts). UA will only have IAH/LAX/GUM from NRT and AA will only have DFW/LAX from NRT.

 

JL is strong at US destinations but weak at EU's. If we were to look at the outbound/inbound of passengers, it would seem EU's traffic is more than US's.

JL (or JP, KR, TW in general) has stronger ties with the US than the EU. Plus it doesn't really makes sense for a lot of passengers to connect via Japan/Korea from Asia to Europe (and schedule sucks where most flights are westbound day flights) where as it's on the way for most America bound flights.

 

I would imagine it would be wise to deploy MH's A380 to NRT and JL can withdraw their flights from NRT and start flights from HND and other points in Japan (e.g. KIX). As this is a joint venture, they can treat all the flights operated by either airline as their own flights. So they can coordinate flight schedules and frequencies.

*IF* MH gets what they want at HND, I don't think MH has much use for NRT anymore. Domestic connections are many folds better at HND and not to mention Tokyo bound pax will almost always choose HND over NRT. There are only about 26 daytime slots left at HND for S20. I'd be surprised if Malaysia gets 2 and more importantly, Mavcom awards both of them to MH leaving D7 with the nighttime slot.

 

The JV as of right now applies (if approved) for MY-JP market only. So if a pax is traveling say SG-MY-JP, it's not metal neutral yet.

Edited by Craig

Share this post


Link to post
Share on other sites

Is Malaysia Airlines worth saving? CEO offers plan for Mahathir to avoid painful shutdown

Chief executive Izham Ismail says proposal to turn around ailing carrier to be submitted for approval to sole shareholder Khazanah Nasional Berhad. But he concedes that reversing the decline will be super tough after year of losses.

 

The future of loss-making Malaysia Airlines hinges on whether its state-controlled owner agrees to the firms strategy of remaining a full-service airline while at the same time trying to claw back market share from fast-growing low-cost carriers, chief executive Izham Ismail says.

 

Izham on Sunday said the plan to turn around the struggling business would be submitted next month to sovereign wealth fund and sole shareholder Khazanah Nasional Berhad, and would require the approval of its chairman, Malaysian Prime Minister Mahathir Mohamad.

 

Khazanahs board is expected to discuss the plan between mid-June and early July.

.....

Izham said the airlines revival plan would focus on how to retain premium customer service and avoid job cuts while addressing fierce competition at home and Asia-wide, primarily from low-cost airlines.

 

But Izham admitted that turning around Malaysia Airlines in its current form, in its current market, which is irrational, will be super tough.

......

https://www.scmp.com/week-asia/economics/article/3012915/malaysia-airlines-worth-saving-ceo-offers-plan-avoid-painful

 

Given many glc executives are pampered by me3, it won't be easy for mh to gain loyalty.

 

It didn't need McKinsey or genius to tell; in fact, anyone with 2 cents worth of business sense could tell mh current business model is not sustainable.

 

Taken over by t* is probably the realistic and feasible solution.

Edited by KK Lee

Share this post


Link to post
Share on other sites

It didn't need McKinsey or genius to tell; in fact, anyone with 2 cents worth of business sense could tell mh current business model is not sustainable.

 

What would be your plan for a sustainable airline business model? Edited by Chris Tan

Share this post


Link to post
Share on other sites

What would be your plan for a sustainable airline business model?

Remove top 4 tiers of management and bring in outsiders to start with. Otherwise, never ending story.

Edited by KK Lee

Share this post


Link to post
Share on other sites

Remove top 4 tiers of management and bring in outsiders to start with. Otherwise, never ending story.

 

That is not going to do anything.

  • 2011 - old management ousted, new management parachuted in including several Westjet managers.
  • 2015 - that management ousted, new management parachuted in including several Westerners.
  • 2017 - that management decimated, now management is in the hands of locals again...

Why don't you volunteer to lead MAS then?

Share this post


Link to post
Share on other sites

The point of no return was to allow Malindo as third player to come in.

2 are ok, 3 are too much.

 

Especially with the Malindo-Biz on short- and mediumhaul routes.

Share this post


Link to post
Share on other sites

 

That is not going to do anything.

  • 2011 - old management ousted, new management parachuted in including several Westjet managers.
  • 2015 - that management ousted, new management parachuted in including several Westerners.
  • 2017 - that management decimated, now management is in the hands of locals again...
Why don't you volunteer to lead MAS then?
if politically acceptable. Edited by KK Lee

Share this post


Link to post
Share on other sites

The point of no return was to allow Malindo as third player to come in.

2 are ok, 3 are too much.

 

Especially with the Malindo-Biz on short- and mediumhaul routes.

Competition is great for consumers, no? Or do you prefer the good old days of RM800 tickets to East Malaysia?

Share this post


Link to post
Share on other sites

We have seen the bankruptcy and recovery of JAL. We have also seen the demise of Jet Airways in India. Surely, we can learn from these two cases.

 

I think Khazanah should just allow MAB to be managed on a purely commercial basis and allow it to succeed or sink on its own. There is no need to throw good money after bad.

 

In these challenging days of US-China trade wars, even airlines like SQ are finding it difficult. However, their govt. allow them to deal with the problems on their own. MAB needs management and staff to wake up from their civil service mentality and work their butts out like those in the private sector. No more bailouts should be given.

Share this post


Link to post
Share on other sites

I do wonder how much of current problem is with the CEO and senior Mgt. The previous 2 CEO's appeared to try to change things with the restructuring and were very positive in their messages. As I mentioned before the current CEO is very quiet and I wonder if its really a political issue or is it just that the leadership lacks the balls to to make change happen?

Share this post


Link to post
Share on other sites

Competition is great for consumers, no? Or do you prefer the good old days of RM800 tickets to East Malaysia?

 

2 Airlines are not a monopol ;-)

 

Malaysia have 32 million people and 3 more or less big airlines.

Germany have 83 million people and it was not possible to establish Air Berlin as second big player beside Lufthansa.

 

Competion is great yes - and you pay for it with your taxes...around RM32 from every malay for MAS in 2018!

 

What use is competition for you if the airlines do not make any profits? That is the basic requirement for a substantial business model or not?

Share this post


Link to post
Share on other sites

 

2 Airlines are not a monopol ;-)

 

Malaysia have 32 million people and 3 more or less big airlines.

Germany have 83 million people and it was not possible to establish Air Berlin as second big player beside Lufthansa.

 

Competion is great yes - and you pay for it with your taxes...around RM32 from every malay for MAS in 2018!

 

What use is competition for you if the airlines do not make any profits? That is the basic requirement for a substantial business model or not?

 

Wouldn't really use Air Berlin or Germany as a country to compare. Do note that Germany is part of EU and they have free movement along the EU and given that they also have very good transportation in terms of land, sea and air so options are all there.

Share this post


Link to post
Share on other sites

2 Airlines are not a monopol ;-)

 

2 airlines is not a monopoly, but it is an oligopoly. Which is just as bad.

 

I do wonder how much of current problem is with the CEO and senior Mgt. The previous 2 CEO's appeared to try to change things with the restructuring and were very positive in their messages. As I mentioned before the current CEO is very quiet and I wonder if its really a political issue or is it just that the leadership lacks the balls to to make change happen?

 

With the previous two CEOs, they had a stable & receptive government. With the current CEO, he doesn't. That's why it looks like he is quiet.

 

Also unlike the previous two CEOs, the current CEO has been with the company way back, even before the existence of AirAsia, even before ground broke for the building of KLIA. Hence he knows the need to be careful when dealing with this government.

Edited by Mohd Suhaimi Fariz

Share this post


Link to post
Share on other sites

Why do I feel that certain members in this forum has an axe to grind with current government?

 

Well, Mahathir started the s#1t by selling MH to Tajuddin Ramli, let him sort his s#1t himself. Kecoh sangat buat aper?

Share this post


Link to post
Share on other sites

Why do I feel that certain members in this forum has an axe to grind with current government?

 

Well, Mahathir started the s#1t by selling MH to Tajuddin Ramli, let him sort his s#1t himself. Kecoh sangat buat aper?

 

Because a lot of the members here are being too lenient on the current government.

 

Also because on my part, it is personal. I don't think you can ever understand that. In any case, one can ask the same thing about those who make so much fuss about MH management yada yada yada. Kecoh sangat buat aper?

Edited by Mohd Suhaimi Fariz

Share this post


Link to post
Share on other sites

 

2 airlines is not a monopoly, but it is an oligopoly. Which is just as bad.

 

 

 

The core is:

MAS is making huge loses

Malindo never made a profit since they are in the air

Tony's profits are coming down

 

Sorry, but Malaysia is not big enough for 3 "bigger" airlines.

Share this post


Link to post
Share on other sites

 

The core is:

MAS is making huge loses

Malindo never made a profit since they are in the air

Tony's profits are coming down

 

Sorry, but Malaysia is not big enough for 3 "bigger" airlines.

 

Honestly Malindo hardly features at the top of the minds of most Malaysians. I don't think their impact to the situation is that big.

Share this post


Link to post
Share on other sites

×
×
  • Create New...