MAS Privatisation

[JuliusWong 0]

14 minutes ago, Craig said:

I think it was at CAPA meeting that the CEO said they are looking at adding another 10 wide body and 35 narrowbody to their fleet (in addition to the 20 339 and 6/7 359).  I can't find the news article but I forgot if it included increasing their proposed 359 count to 10 as well. So MAG will probably have 36-40 wide body by 2027-28, a nice increase from the current 28 today.

The 350s can be used for Europe expansion (*if* they have a fleet of 10) but I don't believe US will be in their radar in the near/medium term. US isn't exactly a place Malaysians frequently travel to. Same goes for Americans to Malaysia. CX, NH, SQ, PR, Taiwanese carriers, ME4 + TK have covered pretty well for MY-US/CA traffic. It's just really far for most Malaysians to travel to and we almost always stick to ANZ and Europe for our "western" countries holidays.

If anything, I'd rather MH return back to JNB/CPT. SQ is taking the bulk of Southeast/East Asia plus ANZ - Southern Africa traffic. Southern Africa is a route less traveled for most Asians, but you get a lot for your ringgit there. Think of it as Europe quality produce at Malaysian price

This is the fleet plan I posted in another thread based on Izham's recent interview with various media.

Quote

By 2024/2025, MH fleet will roughly look like:

1. A330-200 = 6 (some will be withdrawn from service once A330neo delivery commences)
2. A330-300 = 15 (some will be withdrawn from service once A330neo delivery commences)
3. A330-900 = 5
4. A350-900 = 7 (assuming MH does not take 8th airframe)
5. B737-800 = 39 (number will further decrease with more MAX 8 delivery)
6. B737 MAX 8 = 10 (assuming Boeing delivers consistently)

By 2028, widebody will be 55. Narrow body will be around the same.

1. A330-900 = 40 (assuming MH exercises all 20 options)
2. A350-900 = 7 (assuming MH does not take 8th airframe)

This leaves room for eight additional widebody.

1. B737-800 = 15
2. B737 MAX 8 = 25
3. B737 MAX 10/ A321neo = 20 (assuming they can secure the slots, otherwise it will be pushed back to 2030)

55 widebody + 60 narrowbody is possible fleet set-up by end of the decade.

 

[Chris Tan 0]

47 minutes ago, Craig said:

I think it was at CAPA meeting that the CEO said they are looking at adding another 10 wide body and 35 narrowbody to their fleet (in addition to the 20 339 and 6/7 359).  I can't find the news article but I forgot if it included increasing their proposed 359 count to 10 as well. So MAG will probably have 36-40 wide body by 2027-28, a nice increase from the current 28 today.

The 350s can be used for Europe expansion (*if* they have a fleet of 10) but I don't believe US will be in their radar in the near/medium term. US isn't exactly a place Malaysians frequently travel to. Same goes for Americans to Malaysia. CX, NH, SQ, PR, Taiwanese carriers, ME4 + TK have covered pretty well for MY-US/CA traffic. It's just really far for most Malaysians to travel to and we almost always stick to ANZ and Europe for our "western" countries holidays.

If anything, I'd rather MH return back to JNB/CPT. SQ is taking the bulk of Southeast/East Asia plus ANZ - Southern Africa traffic. Southern Africa is a route less traveled for most Asians, but you get a lot for your ringgit there. Think of it as Europe quality produce at Malaysian price

That’s a good analysis. And yes, South Africa is quite an expensive market for air travel. Despite its economic woes it’s actually a fairly high yield market. 

[sweekee 0]

The A332 contract until 2028 ,right? I think there is still expandable.

[Izanee 0]

Thanks for sharing guys.. very informative and slightly more positive !

[jahur 0]

Believe the contingency plan incase they cant execute additional new widebodies if it really happens is to retain 7-9 a330ceos until 2029. Amal or the charter division is also looking to lock out 4-6 widebody aircrafts very likely to be the a332.

On 12/26/2023 at 11:10 AM, JuliusWong said:

This is the fleet plan I posted in another thread based on Izham's recent interview with various media.

Not mistake 2024 they'll be taking in 6-8 max8, 3-4 a339s, with 2 a330ceos leaving
2025 8-9 max 8, 6-8 a339s, with 5-6 a330ceos leaving.

Overall this still allows some mild extra widebodies than the current 21 a330ceos as by the end of 2025 technically they will have at least 25 a330s combined a surplus of 4 give or take.

Remaining frames on order will be due for 2026 but some may continue down to early 2027.


 

[Riza 0]

I do hope some old WB will stay to serve some Asean routes

[JuliusWong 0]

Quote

MAG unveils new ground uniform; focuses on become Asia's leading travel & aviation services group.
By BILQIS BAHARI - January 10, 2024 @ 1:41pm

https://www.nst.com.my/business/corporate/2024/01/999432/mag-unveils-new-ground-uniform-focuses-become-asias-leading-travel

SEPANG: Malaysia Aviation Group (MAG) will be focusing on three core principles in 2024 as it aspires to become Asia's leading travel and aviation services group. 

MAG group managing director Datuk Captain Izham Ismail said the group will elevate its efforts to improve its cabin comfort as well as its in-flight dining experiences and refine its overall service delivery to its passengers. 

"We're making significant investments including modernising our fleet with new aircraft and seats, improving our overall offerings being either on the ground or onboard and implementing changes that support our growth aspirations, embracing an era of transformative and modernity for an organisation that is laced with rich history," he said at the unveiling of MAG's new ground uniform here today. 

The event was graced by Tengku Permaisuri Selangor, Tengku Permaisuri Hajah Norashikin. 

The new ground uniform, which was designed in-house, combines style and practicality with a focus to diversity to suit AeroDarat's role in serving  a range of aviation services for all airlines under MAG and foreign carriers flying into domestic airports in Malaysia. 

MAG group chief customer experience officer Lau Yin May said the uniform collection encompasses a tailored three-piece suit with skirt or trouser options for women.

"This flexibility ensures that the frontliners can carry out their duties with confidence, pride and warm hospitality, shaping the experience of our guests at the airport," she said while presenting the new ground uniform. 

Lau added that the uniform's bold classic navy-blue colour scheme aligns with MAG's brand essence with the blazer featuring an intricate songket design. 

The launch event was held in collaboration with Habib Jewels and TudungPeople.

 

[Pall 0]

The management of MH appears to be somewhat disconnected from reality when discussing the improvements in cabin comfort and seats for their refurbished B737NG and new MAX.

Perhaps the worst in its class for claiming to be FSC premium airlines

[KK Lee 5]

On 1/10/2024 at 6:31 PM, JuliusWong said:

 

Change of uniform design cost ten of millions RM if not more, is normally coincide with corporate revamp. If history is any precedent, some parties created the opportunity for milking.

[JuliusWong 0]

10 hours ago, KK Lee said:

Change of uniform design cost ten of millions RM if not more, is normally coincide with corporate revamp. If history is any precedent, some parties created the opportunity for milking.

Actually if you look at Malaysia Airlines closely, lately they have been rolling out their new marketing campaign and corporate revamp in subtle manner. The new uniform for inflight crew and ground crew, and the not-so-well-received new cabin for B737 fleet. At least now we have a confirmed logotype. However IMO, all these aesthetic makeover are redundant if their flight cannot depart on time, poor handling if there is a delay/ cancellation, customer services and recovery are in shambles. Let's not forget the poor inflight catering and IFE.......

[Pall 0]

MH will pay the price for their worst decision of all time on the 737NG/MAX new cabin seats. One year down the road they will ponder on why loads are dropping and inability to raise yield. This is what happens when accountants makes decision. 

[Craig 0]

9 hours ago, JuliusWong said:

The new uniform for inflight crew and ground crew, and the not-so-well-received new cabin for B737 fleet. At least now we have a confirmed logotype. 

When was this? I thought they haven't changed their cabin crew uniform in ages?

1 hour ago, Pall said:

MH will pay the price for their worst decision of all time on the 737NG/MAX new cabin seats. One year down the road they will ponder on why loads are dropping and inability to raise yield. This is what happens when accountants makes decision. 

Chicken and egg. MH knows their yields are low (and maybe Malaysian consumers are counting down to the last sen as well) so they wouldn't refurbish it with a more padded seat or take away a row in Y and increase price. Or  higher yield passengers (especially non-MY O&D pax) won't pay for a subpar product and would rather pay more for say SQ/QR.

[flee 5]

48 minutes ago, Craig said:

Chicken and egg. MH knows their yields are low (and maybe Malaysian consumers are counting down to the last sen as well) so they wouldn't refurbish it with a more padded seat or take away a row in Y and increase price. Or  higher yield passengers (especially non-MY O&D pax) won't pay for a subpar product and would rather pay more for say SQ/QR.

Their 737 cabins will not affect pax loads cos it is almost the same with other airlines. Seats are getting more and more uncomfortable because the priority is to reduce weight. They just lack imagination in the marketing these days and don't engage directly with their customers. They still rely a lot on traditional sales channels.

[Pall 0]

4 hours ago, flee said:

Their 737 cabins will not affect pax loads cos it is almost the same with other airlines. Seats are getting more and more uncomfortable because the priority is to reduce weight. They just lack imagination in the marketing these days and don't engage directly with their customers. They still rely a lot on traditional sales channels.

In the case of MH they keep marketing it as "premium".  

[jahur 0]

Just observed some of the check in desk staff new attire. A majority of them were not wearing the songket outter coat which makes their inner lighter clothes look like Pajamans. As for the Female attire the missing strap or button looks like a cost cutting tactic as the management wont have to resend them back to rescale back their body fitting in the case of pregnancy lol,

Technically not corporate enough but yet not hotel receptionist enough.

[Pall 0]

15 hours ago, jahur said:

Just observed some of the check in desk staff new attire. A majority of them were not wearing the songket outter coat which makes their inner lighter clothes look like Pajamans. As for the Female attire the missing strap or button looks like a cost cutting tactic as the management wont have to resend them back to rescale back their body fitting in the case of pregnancy lol,

Technically not corporate enough but yet not hotel receptionist enough.

Always half baked initiative. Typical of MH. 

[JuliusWong 0]

16 hours ago, jahur said:

Just observed some of the check in desk staff new attire. A majority of them were not wearing the songket outter coat which makes their inner lighter clothes look like Pajamans. As for the Female attire the missing strap or button looks like a cost cutting tactic as the management wont have to resend them back to rescale back their body fitting in the case of pregnancy lol,

Technically not corporate enough but yet not hotel receptionist enough.

Well, I personally experienced differently while checking in for MH133 two days ago. All frontdesk staff were wearing the full uniform, and the support crew also dons their new uniform. Very beautiful to be honest. A departure from the past.....a good initiative to pay homage to our local tradition and heritage.

[Chris Tan 0]

23 hours ago, flee said:

Their 737 cabins will not affect pax loads cos it is almost the same with other airlines. Seats are getting more and more uncomfortable because the priority is to reduce weight. They just lack imagination in the marketing these days and don't engage directly with their customers. They still rely a lot on traditional sales channels.

Look at it within the regional context. MH's 737s compete against the likes of SQ and TG widebodies, not just the LCCs. It's not loads you have to worry about - it's the yields that matter. The 73H product is wholly uncompetitive on anything over 2.5 hours.

[flee 5]

44 minutes ago, Chris Tan said:

Look at it within the regional context. MH's 737s compete against the likes of SQ and TG widebodies, not just the LCCs. It's not loads you have to worry about - it's the yields that matter. The 73H product is wholly uncompetitive on anything over 2.5 hours.

You hit the nail on the head - I will only fly MH 737s if the flight is not more than 2 hours. We will know better once MH has more A330s in the fleet as we know that they do have routes where widebodies supplement the narrowbody flights. Perhaps they will add more such routes once they have more widebodies in the fleet.

[JuliusWong 0]

On 1/14/2024 at 9:31 AM, Craig said:

When was this? I thought they haven't changed their cabin crew uniform in ages?

Started to roll out earlier this month. Subtle change only, the volour, cutting and materials are different than previous rendition. More noticeable in the male flight attendant uniform. Of course, they won't be able to launch an all-new uniform, if not later kena blasted by the public kao kao (just joking). I wonder what happened to their new uniform agreement with Farah Khan back in 2016??

Edited January 15 by JuliusWong

[jahur 0]

3 hours ago, JuliusWong said:

Well, I personally experienced differently while checking in for MH133 two days ago. All frontdesk staff were wearing the full uniform, and the support crew also dons their new uniform. Very beautiful to be honest. A departure from the past.....a good initiative to pay homage to our local tradition and heritage.

Generally KUL everyone is abiding the attire. Other stations where the airconditoning of the airport may be half baked, Some opted to not wear the coat as it is hot. It looks a bit awkward (white pajamas) cause the entire attire is designed in a way u must wear the outer coat. The older non kebaya aerodarat attire at other stations while it is the typical plain office look at least it does not look that weird and can be worn without needing an outter coat.

Edited January 15 by jahur

[KK Lee 5]

On 1/14/2024 at 8:11 AM, Pall said:

MH will pay the price for their worst decision of all time on the 737NG/MAX new cabin seats. One year down the road they will ponder on why loads are dropping and inability to raise yield. This is what happens when accountants makes decision. 

TF made his money from the stock market and deals, LCC operating efficiency is largely for analysts consumption. Mas pursuing LCC business model is unlikely to achieve it's objective.

On 1/14/2024 at 9:31 AM, Craig said:

When was this? I thought they haven't changed their cabin crew uniform in ages?

Chicken and egg. MH knows their yields are low (and maybe Malaysian consumers are counting down to the last sen as well) so they wouldn't refurbish it with a more padded seat or take away a row in Y and increase price. Or  higher yield passengers (especially non-MY O&D pax) won't pay for a subpar product and would rather pay more for say SQ/QR.

Those could afford, willing to pay for FSC and have choice, unlikely to choose mas. Many MNC employees travel via sin. Even GLC preferred ek, qr, tk over MH to Europe. Mas is almost certain is trapped with low yield pax.

On 1/14/2024 at 10:23 AM, flee said:

Their 737 cabins will not affect pax loads cos it is almost the same with other airlines. Seats are getting more and more uncomfortable because the priority is to reduce weight. They just lack imagination in the marketing these days and don't engage directly with their customers. They still rely a lot on traditional sales channels.

Typical of for the tree and miss the forest. It seems people at the top don't understand hospitality business or exposed to competitors airlines.

On a recent visit to mas lounge at satellite terminal kul. If restaurant in kl serve those buffet food, is almost certain will close down.

Edited January 15 by KK Lee

[JuliusWong 0]

Saw this from LinkedIn, good luck to MH, SQ, TG, CX and many other airlines.......with 65 A359, 35 B778, 170 B779, 35 B787s, that's a total of 305 airframes coming, EK is going to need a lot of new employees!

[JuliusWong 0]

MAG CEO Captain Izham did an interview with BFM89.9 this morning January 17, 2024. I have not listen to the whole interview, but it sounds Captain Izham will not be extending or renewing his contract when the current one is due in November this year.

 

[flee 5]

Interesting to note that revenue from international operations is now 90% of total revenue. It looks like those joint ventures with Qatar and JAL are helping to boost MH's revenue. He likes being a private company as he does not have to deal with questions from investors every quarter. But that also means a lack of transparency and I am not sure if that is so good.

As for extending his contract, I do hope that he makes way for younger talent but he should be retained as a board member and act in some sort of advisory capacity.