MAS Privatisation

[KK Lee 5]

5 hours ago, Craig said:

SQ also has huge bank/corporate contracts in addition to connecting a lot of pax around the world. Also helps when their home base is one of the wealthiest in the world.

And it doesn't really help when the Malaysian government doesn't see forests for the trees. Do you think they will want to pay a very capitalist but popular singer RM10 million per show for exclusive rights to host a concert in ASEAN? I don't think ordinary taxpayers will agree to this as well. It's the same for MH. Government and your everyday taxpayers aren't willing to pump in money to buy brand new planes or install lie-flats on the 7M8.

Except PRC, USA, AUS, JPN, etc few airlines could depend mostly on domestic market.

I heard yield has dropped, it would be a challenge for MH to maintain profit like in 2023.

 

5 hours ago, Craig said:

MH will swap its 300 seater A350 (ex-SK) from MEL to DOH for NS24 schedule. That's quite a lot of capacity for DOH-KUL, 2x359 (MH) and 2x77W (QR). And MH 350s seems to have quite a bit of ground time (both KUL and outstation) compared to the 333s.

If include KUL-DXB, IST, etc, there is fairly substantial volume from KUL to EUR.

[JuliusWong 0]

9 hours ago, Alif A. F. said:

I guess with recent discussion regarding MH fleet planning, want to share the latest news from our neighbour:

Royal Brunei Places 787 Order With An Eye On 787-8 Replacement | Aviation Week Network

While I appreciate new technology and fleet replacement, this will be ultimate disaster to BI to be honest. Their current B787-8 utilisation is minimal at best, spending most of their time on the ground. Their schedule to Melbourne and London is no longer daily as pre-COVID 19 era, now transit via DXB and leasing out LHR slots to Qatar, bringing in the B787-9 will be even worse off. Unless they are planning to return to PER, BNE, SYD and AKL to support its (non-stop) LHR flight, I don't see how they can break even, let alone making marginal profit. 1990s/2000s BI with multiple hubs and eight B767s/two B757s flying weird route pattern like BWN-RGN-CCU-DXB-LHR all over again. Feeling deja vu.......

This is the first airline in the world to do B787 fleet replacement, albeit with B787 as well. The four B787-9 will replace the first four B787-8 and will operate alongside with BI's fifth B787-8 V8-DLE. I don't see them flying nine B787s, that's suicidal with small international network.

[Pall 0]

4 hours ago, JuliusWong said:

While I appreciate new technology and fleet replacement, this will be ultimate disaster to BI to be honest. Their current B787-8 utilisation is minimal at best, spending most of their time on the ground. Their schedule to Melbourne and London is no longer daily as pre-COVID 19 era, now transit via DXB and leasing out LHR slots to Qatar, bringing in the B787-9 will be even worse off. Unless they are planning to return to PER, BNE, SYD and AKL to support its (non-stop) LHR flight, I don't see how they can break even, let alone making marginal profit. 1990s/2000s BI with multiple hubs and eight B767s/two B757s flying weird route pattern like BWN-RGN-CCU-DXB-LHR all over again. Feeling deja vu.......

This is the first airline in the world to do B787 fleet replacement, albeit with B787 as well. The four B787-9 will replace the first four B787-8 and will operate alongside with BI's fifth B787-8 V8-DLE. I don't see them flying nine B787s, that's suicidal with small international network.

BI don't need to be "profitable" per say. They are heavily subsidized and state owned. Financial mechanics work in a different multiverse for them. 

[Craig 0]

9 hours ago, KK Lee said:

Except PRC, USA, AUS, JPN, etc few airlines could depend mostly on domestic market.

I heard yield has dropped, it would be a challenge for MH to maintain profit like in 2023.

If include KUL-DXB, IST, etc, there is fairly substantial volume from KUL to EUR.

I said it helps, SQ doesn't depend mostly on domestic market. The huge connection possibility, bank/corporate contracts, JV with a number *A carriers plus other airlines like AF/KL for beyond connections, and a wealthy home base helps.

There is substantial traffic to EU between SV, QR, TK, EY, EK (I am curious if these airlines are more successful ex-MY due to its halal offering on board). And then you have other Southeast/East Asian airlines that connects pax between MY and EU too (not too surprising to see CX, CI, BR, and even CN carriers sell those tickets). MH however can only connect pax to/from DOH or LHR, most of which require 2 stops if they go beyond KUL (and MH fares are quite exorbitant once a partner is involved even though it's a metal-neutral joint business/venture like JAL-MH).

[jahur 0]

1 hour ago, Pall said:

BI don't need to be "profitable" per say. They are heavily subsidized and state owned. Financial mechanics work in a different multiverse for them. 

Few friends left AK and MH and working over there while not as competitive to the gulfs or hong kong based airlines, the low cost of living and everything being tax free is a huge advantage. But again for how long Brunei can keep up with this charade as it has yet to put effort to diversify its economy. Even Saudi Arabia knows this and is actively trying to open up and they're in a much safer margin compare to Brunei.

Edited February 21 by jahur

[JuliusWong 0]

1 hour ago, Pall said:

BI don't need to be "profitable" per say. They are heavily subsidized and state owned. Financial mechanics work in a different multiverse for them. 

Yea true. It is a form of "public transport" for Brunei. Not supposed to make any money, not break even too. I wonder how much longer can the falling oil reserves and depleting $$ in national reserve can keep the country going. Brunei has been consistently recording deficit for the past few years. I missed those gold plated J lavatory though....

[jahur 0]

2 minutes ago, JuliusWong said:

I missed those gold plated J lavatory though....

Heard the sultan has gone bargain hunting for acj338 and is now actively trying to nego a 1 bbj787-9 from this deal off books. 

[JuliusWong 0]

1 minute ago, jahur said:

Heard the sultan has gone bargain hunting for acj338 and is now actively trying to nego a 1 bbj787-9 from this deal off books. 

Won't be surprised if he does so, he visited Toulouse last year something must have been brewing. His royal fleet needs some tender loving care. His B767-27G/ER needs a replacement since it is now 30 years old. His A340 retired without a proper Airbus replacement. B748i/B787-8/A330-800...perfect combo! Another B787-9 will be icing on top of the cake.

Boeing will bend over their backwards for him definitely. If not, the Sultan will shell out a few hundred million to pay off any airline to grab one of their B787-9s. Like what he did for his previous B747-430 and B767-27G/ER.

Royal Brunei livery looks.....hmmm...bland? on A330 though.

[JuliusWong 0]

Some updates for MAG:

Quote

Malaysia Airlines extends air-rail ticketing options

https://www.businesstravelnewseurope.com/Ground-Transport/Malaysia-Airlines-extends-air-rail-ticketing-options

By Rob Gill / 19 February 2024

Malaysia Airlines is extending its air-rail ticketing options through a new product called MHrail, which offers multi-modal travel within a single booking.

The carrier is working with Canadian intermodal specialist AccesRail on the initiative, which will offer air-rail bookings from London Heathrow airport on UK rail services operated by London North Eastern Railway (LNER) and the Avanti West Coast.

Malaysia Airlines already sells air-rail tickets in the UK through an existing partnership with Great Western Railway. 

Outside the UK, the airline is also offering Korail KTX train tickets for routes to and from Incheon International airport in South Korea.

Dersenish Aresandiran, chief commercial officer of airlines at Malaysia Aviation Group, said: “We are delighted to offer our customers more options on flight to rail connections, ensuring a hassle-free travel experience for all. 

Quote

Ticketing office for Malaysia Airlines, MASwings, Firefly opens at Paradigm Mall,PJ

https://www.nst.com.my/business/corporate/2024/02/1013164/ticketing-office-malaysia-airlines-maswings-firefly-opens

By Asila Jalil - February 14, 2024 @ 11:19am

KUALA LUMPUR: Malaysia Aviation Group (MAG) has opened its latest airline ticketing office located at Paradigm Mall, Petaling Jaya.

Its ticketing office includes reservations and ticket transactions for Malaysia Airlines, MASwings, Firefly, oneworld, and Codeshare flights, and purchasing ancillary services such as seat selection, prepaid baggage and lounge access.

MAG chief executive officer of airlines Ahmad Luqman Mohd Azmi said the company is offering its customers multiple transaction avenues, whether they prefer to engage physically, online, or over the phone.

"We offer a range of tailored solutions designed to meet the diverse needs of our customers, reflecting our unwavering dedication to enhancing the customer experience. This commitment extends warmly to all, including our valued Enrich members, showcasing the essence of Malaysian hospitality," he said in a statement.

In addition, the new ticketing office provides Enrich members the convenience of engaging in services related to their Enrich accounts all under one roof, covering profile updates, account management, missing points claims, product inquiries, redemptions and many more Enrich services.

Enrich Platinum and Gold members, as well as Business Class passengers, will also enjoy exclusive privileges including access to a dedicated business class waiting area, four dedicated ticketing counters and a priority queue system to ensure seamless processing and personalised service.

 

[JuliusWong 0]

16 hours ago, Craig said:

I am more curious if MH will announce any orders at the SG airshow. They aren't known for announcing orders at an airshow but the narrow body replacement and additionally wide bodies are supposed to be announced Q1 2024.

Airbus and Malaysia Airlines announces MOU for carbon emission studies during Singapore Airshow 2024.

Quote

Airbus, Malaysia Aviation Group ink MoU to conduct emissions studies

https://www.malaymail.com/news/money/2024/02/19/airbus-malaysia-aviation-group-ink-mou-to-conduct-emissions-studies/118913

KUALA LUMPUR, Feb 19 — Airbus and Malaysia Aviation Group (MAG), the parent company of national carrier Malaysia Airlines Bhd, have signed a memorandum of understanding (MoU) to collaborate in conducting comprehensive studies on carbon emissions of the airline group.

In a statement today, Airbus said this significant step signifies the initiation of a two-year partnership between the two entities, dedicated to exploring various avenues for decarbonisation within MAG’s operations.

The MoU between Airbus and MAG encompasses five key areas of focus, namely sustainable aviation fuel (SAF); carbon dioxide removal (CDR); assessment of financial implications associated with CO2 reduction; forecast and scenario planning; and joint advocacy and communication efforts.

 

[Craig 0]

10 minutes ago, JuliusWong said:

Airbus and Malaysia Airlines announces MOU for carbon emission studies during Singapore Airshow 2024.

They could be flying 100% Malaysian sustainable oil palm oil or fossil fuel. All I care about is what I am flying on

[KK Lee 5]

9 hours ago, Craig said:

They could be flying 100% Malaysian sustainable oil palm oil or fossil fuel. All I care about is what I am flying on

Recycled cooking oil and renewable oil for jet fuel is expensive to produce. Airlines trial it for pr purpose. Unless is mandated by law, few airlines will use it fully.

[KK Lee 5]

Was on MH to bkk recently; they offered 3 choices of meal exclude vegetarian, served main course, cake, fruit and bun on tray, and serving 100% juice.

In mh regional lounge, they have egg station, smoked salmon, beef rendang, etc for breakfast. A great improvement from brahim days.

[jahur 0]

1 hour ago, KK Lee said:

Recycled cooking oil and renewable oil for jet fuel is expensive to produce. Airlines trial it for pr purpose. Unless is mandated by law, few airlines will use it fully.

Singapore plans to made in mandatory by 2026 onwards. As for the rest of Asean expect some integration by late 2028. And as usual cost will be pushed to passengers instead. Banks and auditors are always gawking at the ESG solution and go green initiative and pushing all businesses and corporations to comply the standards as much as possible.

Air ticket prices to go up as Singapore mandates sustainable fuel for departing flights from 2026

Edited February 21 by jahur

[sweekee 0]

2 hours ago, KK Lee said:

Was on MH to bkk recently; they offered 3 choices of meal exclude vegetarian, served main course, cake, fruit and bun on tray, and serving 100% juice.

In mh regional lounge, they have egg station, smoked salmon, beef rendang, etc for breakfast. A great improvement from brahim days.

Yes,my flight KUL-TPE also offer 3 choices:nasi lemak/omelette/bihun.I think 3 is more than enough,2 option is reasonable and use the cost to rich the content .

[Craig 0]

I always thought there were 3 options during Brahims before Covid or is my memory failing me?

Lounge offering has improved a lot compared to 2019 (taste + quality). My only pet peeve are flies and the fly spinner fan around the buffet. It does make it look cheap and kinda gross.

[jahur 0]

Aviation carbon emission tax at ‘minimal cost’ to consumers

Quote

PETALING JAYA: Airlines will be allowed to impose additional fees to cover their carbon emissions, transport minister Loke Siew Fook said today.

However, it would not be mandatory for all airlines, and “will come at a very minimal cost,” he said after a ministry event in Putrajaya.

Kerajaan benarkan syarikat penerbangan kenakan caj pelepasan karbon - Loke

Quote

"Kos yang minimum mungkin dikenakan. Pertamanya kerana objektif kami adalah untuk tidak membebankan pengguna, tetapi kita mempunyai kewajipan bahawa setiap negara harus mematuhi pengurangan karbon ini," katanya.

 

Its pretty much a global push for net zero gimmick.

[KK Lee 5]

On 2/24/2024 at 11:14 AM, jahur said:

Aviation carbon emission tax at ‘minimal cost’ to consumers

Kerajaan benarkan syarikat penerbangan kenakan caj pelepasan karbon - Loke

 

Its pretty much a global push for net zero gimmick.

Current price of saf (sustainable aviation fuels) is more than double of conventional jet fuel. EU require 5% of jet fuel use to be saf by 2030.

 

[KK Lee 5]

The emergence of low-cost carriers has not contributed to Malaysia Airlines’ decline, Malaysia Aviation Group managing director Izham Ismail said.

Rather, he blamed it on the 1972 decision by the Malaysian and Singapore governments to break up Malaysia-Singapore Airlines, into Malaysian Airline System or MAS (as it was known then) and Singapore Airlines.

https://www.freemalaysiatoday.com/category/nation/2024/02/27/move-to-split-up-malaysia-singapore-airlines-caused-mass-decline-says-izham/

He is unfit for the job.

 

[Alif A. F. 0]

Can't be that MSA split alone that many years ago cause recent MH's predicament - his statement seems like a lame excuse. 

A lot of things happened since then (especially involving decision making parts) that have turn MH into what it is today.

If SQ isn't managed well, it would not be as successful as it is today.

[flee 5]

3 hours ago, KK Lee said:

The emergence of low-cost carriers has not contributed to Malaysia Airlines’ decline, Malaysia Aviation Group managing director Izham Ismail said.

Rather, he blamed it on the 1972 decision by the Malaysian and Singapore governments to break up Malaysia-Singapore Airlines, into Malaysian Airline System or MAS (as it was known then) and Singapore Airlines.

https://www.freemalaysiatoday.com/category/nation/2024/02/27/move-to-split-up-malaysia-singapore-airlines-caused-mass-decline-says-izham/

He is unfit for the job.

What weed was he smoking? MH fought a race to the bottom with AK, bringing both airlines to their knees. And LCCs did not contribute to MH's decline?

I think from 1972 to around 1990, they were progressing steadily. After asset stripper Idris Jala became CEO, the rapid decline began. 

[BC Tam 2]

3 hours ago, KK Lee said:

The emergence of low-cost carriers has not contributed to Malaysia Airlines’ decline, Malaysia Aviation Group managing director Izham Ismail said.

He is right you know, they probably were well capable of 'declining' without outside help ..... 😉

[Pall 0]

Disconnected, delusional, lost and the list goes on for MH leaders.

At a time when airlines are racing to ramp up capacity, launching new routes and ordering aircraft, here we have an airline leader talking about the past. 

 

[kandiah k 0]

Shocked at his feedback, I thought he had some substance comparatively to the other leaders previously. Maybe it was quoted out of context and showcased as the reason; bad journo. In todays world, this is a bitter statement and alike a loser because they should be focusing on moving forward with the latest technology and innovations. Something fishy 🐟

On another note, I flew with MH from KCH and found their crew to be very efficient and friendly. They were mostly seniors in the cabin and younger in the cockpit. Captain spoke really well and very informative. I was lucky to be on the newly refurbished aircraft and had the chance to have their onboard catering and it was good. 

[JuliusWong 0]

Definitely need to hear the whole interview transcript before we should pass our judgement. Media, especially those in Malaysia, loves to sensationalize the story to earn clicks. Various media now are reporting bits and pieces of the whole interview.

That being said, the MSA split to MAS and SIA was the turning point. TAR wanted to prioritize the domestic front while LKY wanted to develop the international front. They never get along well. Never meant to be, better split up. Malaysia Airlines System was sealed after Mr. Tajuddin Ramli took over the the management in 1994. Many stuff were propped up artificially, and it all came crashing down down in 2001 after 9/11 incident. The successive management teams were limping from HDU to CCU to ICU......The airline never stood a chance to recover at all, basically with no money in their bank account forcing them to sell their assets. Like it or not, when you are a beggar, you cannot be choosy. While the public can say whatever they want with Idris Jala (2009 - 2011) being assets stripper, cutting the Group to bare bones, what could be done differently then when you have no cash in hand to fund your daily operation? Malaysia Airlines had 20,000 employees and reported losses of USD400 million in the 9 months leading to his entrance. In just 24 months of rigorous transformation, he produced a $260m profit (many said via selling off assets, but hey at least you have money to fund your operation). If you are given the post, what would you do differently compared to him? 2001 was also the rise of AirAsia.

In the subsequent years, MH saw several CEOs coming and leaving after a short period of time in the hot seat, Tengku Datuk Azmil Zahruddin (2009 - 2011), Ahmad Jauhari (2011 - 2015), Christoph Mueller (2015 - 2016), Peter Bellew (2016 - 2017),  Izham Ismail (2017 - current), each CEOs had their own strategy but did not possess the strong will to make hard decision unfortunately.

Farnborough Airshow is in July this year, fingers crossed MAG has made their mind in placing another order for 20 A330-900neo and 20 A321neo/ B737 Max 10.

Edited February 28 by JuliusWong