MAS Privatisation

[flee 5]

MSA's breakup is inevitable as the Singapore government has always been outward looking (due to its reliance on international trade) and the differing objectives of the two governments will make MSA unworkable.

I think the current CEO is probably the luckiest in terms of political interference - the demise of the BN government was good for him. MAG is privatised under Khazanah's wings and a lot of corporate data is now kept under wraps - so media sensationalism is also much reduced. So the CEO is more or less left to run MAG as a commercial enterprise, Of course, it will never be able to completely rid itself of the burden of being a government owned national airline, but this is as good as it gets.

But MAG's wings are also severely clipped and its heavy dependence on the China and India markets is one of its weaknesses. China's economy is slowing down and India sees a resurgent Air India under new ownership.

Fleet planning is also another weakness and Capt Izham stressed the need to reinvest in its products. Cabin refreshes and new, more efficient aircraft is all part and parcel of that. Just look at the cyclical replacements that go into the fleets of SQ, EK, etc.

MAG is just barely replacing its fleet with the current 737 Max and A330 Neos. Any more narrow body orders will replace the remaining 737NGs plus maybe a little bit of growth. And new widebody orders may signal some network expansion. What would be more interesting would be to see if MAG is bold enough to operate longer range narrow body flights using the A321 Neo LR/XLR.

The challenges MAG and its CEO are facing will be enormous and they also need the MoT and CAAM to step up and show better leadership of the industry. Lets see if they can succeed.....

[JuliusWong 0]

On 2/8/2024 at 9:03 PM, JuliusWong said:

Malaysia Airlines missed the boat to add eight A350. SE-RSC MSN391 is going back to SAS

https://www.flightglobal.com/airlines/sas-looks-to-re-introduce-a350-previously-shed-during-fleet-restructuring/156844.article

On a side note, all remaining HNA A350s which were repossessed are now heading to Thai Airways. 

SE-RSC was  re-delivered to SAS last Saturday March 2, 2024 France local time. 

 

[JuliusWong 0]

Quote

Malaysia Airlines is pleased to introduce the ‘Best of Asia’ menu which is available on selected sectors, promising an enhanced in-flight dining experience for its valued passengers.

Passengers will be treated to local and destination-inspired dishes; ensuring they enjoy delectable premium offerings onboard Malaysia Airlines.

We look forward to serving you delicious Asian cuisine onboard! ✈️

Book a trip now at malaysiaairlines.com or via the Malaysia Airlines mobile app.

[Pall 0]

On 2/29/2024 at 9:51 AM, flee said:

MSA's breakup is inevitable as the Singapore government has always been outward looking (due to its reliance on international trade) and the differing objectives of the two governments will make MSA unworkable.

I think the current CEO is probably the luckiest in terms of political interference - the demise of the BN government was good for him. MAG is privatised under Khazanah's wings and a lot of corporate data is now kept under wraps - so media sensationalism is also much reduced. So the CEO is more or less left to run MAG as a commercial enterprise, Of course, it will never be able to completely rid itself of the burden of being a government owned national airline, but this is as good as it gets.

But MAG's wings are also severely clipped and its heavy dependence on the China and India markets is one of its weaknesses. China's economy is slowing down and India sees a resurgent Air India under new ownership.

Fleet planning is also another weakness and Capt Izham stressed the need to reinvest in its products. Cabin refreshes and new, more efficient aircraft is all part and parcel of that. Just look at the cyclical replacements that go into the fleets of SQ, EK, etc.

MAG is just barely replacing its fleet with the current 737 Max and A330 Neos. Any more narrow body orders will replace the remaining 737NGs plus maybe a little bit of growth. And new widebody orders may signal some network expansion. What would be more interesting would be to see if MAG is bold enough to operate longer range narrow body flights using the A321 Neo LR/XLR.

The challenges MAG and its CEO are facing will be enormous and they also need the MoT and CAAM to step up and show better leadership of the industry. Lets see if they can succeed.....

To be honest, this are the two strongest market right now and moving forward. Producing the highest yield and healthiest load factor. 

Last 3 months have seen a serious upswing for China market, with airlines in this region scrambling for capacity to ride the wave. 

For India, they will never have enough aircraft to serve the growing middle class market. 470 aircraft order by Air India is literally not even close to MH ordering 20 A330neo in terms of population to aircraft ratio. What India lacks is sufficient infra to cope with the growing markets and bilateral traffic rights approval. They need newer secondary airports to reduce dependency on main hubs as well. 

Edited March 5 by Pall

[JuliusWong 0]

3 hours ago, Pall said:

To be honest, this are the two strongest market right now and moving forward. Producing the highest yield and healthiest load factor. 

Last 3 months have seen a serious upswing for China market, with airlines in this region scrambling for capacity to ride the wave. 

For India, they will never have enough aircraft to serve the growing middle class market. 470 aircraft order by Air India is literally not even close to MH ordering 20 A330neo in terms of population to aircraft ratio. What India lacks is sufficient infra to cope with the growing markets and bilateral traffic rights approval. They need newer secondary airports to reduce dependency on main hubs as well. 

India will definitely be the next economy powerhouse for the next decade as China wanes off due to US-China trade conflicts for the past few years and also their dispute with SEA neighbours. China population is also seeing a decline now and India outranked China as the country with largest population last year. In 20 years' time, the newborns will fuel the economy growth. However India is now suffering from growth pains as the current infrastructures are unable to keep up with the growing population. Trains, road, airports, hospitals are unable to cope with the load. If they can pull off what China did after their ascension into WTO in 2001, they will be a force to reckon with. 

As mentioned by you the bilateral rights is also one of the constraints. India can be notorious in granting rights into their primary hubs, let alone their secondary airports. Emirates and Etihad wanted more flights but the India government said no. Emirates has no choice but to deploy their high dense A380s on their routes to India. Despite the constraint, the India government also does not allow their own airlines or even international airlines to fly willingly from secondary airport bypassing the hub airport. 

Airlines in India places a collective order for 1,172 new aircraft last year, the growth will be humongous. Meeting pilot and crew demand will be an issue. Airbus has opens a pilot training centre Tata Airbus Training Centre with Air India. India government and the local state governments are now busy building new airports to meet the increasing demands. Thankfully Boeing and Airbus supply chain issue slows down the growth a bit, but not much. Singapore Airlines has the first mover advantage now since they ventured into India with TATA with Vistara and now own shares in the revitalised Air India. Singapore Airlines are also using A380s on some of their India routes. 

Will be interesting to know what Malaysia government and airlines in Malaysia game plan for India market now and in the next decade.

[Craig 0]

On 3/5/2024 at 8:58 AM, Pall said:

Last 3 months have seen a serious upswing for China market, with airlines in this region scrambling for capacity to ride the wave. 

For India, they will never have enough aircraft to serve the growing middle class market. 470 aircraft order by Air India is literally not even close to MH ordering 20 A330neo in terms of population to aircraft ratio. What India lacks is sufficient infra to cope with the growing markets and bilateral traffic rights approval. They need newer secondary airports to reduce dependency on main hubs as well. 

Chinese carriers seems to be increasing their flights quite a bit to Malaysia thanks to the bilateral visa waiver policy. But some are short-lived, like MU's PKX-KUL.

India has a huge domestic market, several order of magnitudes larger than MH's. MH could have been huge like TK/QR but it might be a bit too late now and MH also lack of funding to do huge orders. We shall see if TG becomes successful with their huge 787 order.

On 3/5/2024 at 12:42 PM, JuliusWong said:

India can be notorious in granting rights into their primary hubs, let alone their secondary airports. Emirates and Etihad wanted more flights but the India government said no. Emirates has no choice but to deploy their high dense A380s on their routes to India. Despite the constraint, the India government also does not allow their own airlines or even international airlines to fly willingly from secondary airport bypassing the hub airport. 

AI has a few oddball routes, like ATQ-BHX, AMD-LGW, BLR-SFO (no brainer for this route tho). MH traded 4 weekly LHR slots for more India rights last time. So who knows what MH/AK Group can give. As of 9 Feb 24, there are no unallocated seats for BOM, BLR, MAA, HYD and only 145 seats to CCU and 17 seats to DEL left per week per current ATR agreement (last updated 2012). Malaysian carriers have to fly to non-metropolitan cities if they want more India traffic. Frequency and capacity (no larger than a 744, whatever that means) aren't restricted outside of those 6 cities.

[KK Lee 5]

On 3/5/2024 at 8:58 AM, Pall said:

To be honest, this are the two strongest market right now and moving forward. Producing the highest yield and healthiest load factor. 

Last 3 months have seen a serious upswing for China market, with airlines in this region scrambling for capacity to ride the wave. 

It seems fewer prc travel overseas. One could get substantial discounted j class tickets to EUR, north America , etc on some sales channel. Chinese airlines ey ticket price ex-kul to north Asia could be similar or cheaper than D7.

CZ widebody PTV, etc hardware is newer and superior than MH 330.

The bar at MH lounge satellite terminal only opens from 10am. Couldn't have espresso martini for breakfast 😔

[JuliusWong 0]

China Airlines (CI) has inducted B-18919 ex-SAS SE-RSA MSN 358 into service, the sibling of MH's 9M-MAH MSN 378. CI has uploaded its seat map on their website, but MH has not updated theirs though.

 

[JuliusWong 0]

MH has removed arrival lounge access/ benefit for those arriving into KLIA. Making a big hoo-ha now at social media. Any true?

[Robert 0]

1 hour ago, JuliusWong said:

MH has removed arrival lounge access/ benefit for those arriving into KLIA. Making a big hoo-ha now at social media. Any true?

I checked with the staff last night and thy confirmed it. I also passed them the screenshots of the MH website and response that a friend received from CS informing that you can use the international lounges upon arrival. 

The story was also passed to the LoyaltyLobby site by somebody (not me) and has now been published. Ive emailed a few senior MH people about this and awaiting the response. 

Whats bad is that the lounge staff said that Enrich had informed that at all members had been emailed but nothing has been received by anyone that I know. They are also annoyed that management are not taking the website details down etc,

The staff also fed back that since late last year the number of people using the lounge for approvals has grown exponentially.
I guess that the December triple points promo, upgrading/renewing those that didn't quite qualify and FY flights earning substantially more tier points has caused this.

[JuliusWong 0]

17 hours ago, Robert said:

I checked with the staff last night and thy confirmed it. I also passed them the screenshots of the MH website and response that a friend received from CS informing that you can use the international lounges upon arrival. 

The story was also passed to the LoyaltyLobby site by somebody (not me) and has now been published. Ive emailed a few senior MH people about this and awaiting the response. 

Whats bad is that the lounge staff said that Enrich had informed that at all members had been emailed but nothing has been received by anyone that I know. They are also annoyed that management are not taking the website details down etc,

The staff also fed back that since late last year the number of people using the lounge for approvals has grown exponentially.
I guess that the December triple points promo, upgrading/renewing those that didn't quite qualify and FY flights earning substantially more tier points has caused this.

Oh dear, this won't go down well for those who want to freshen up before heading downtown for meeting. I believe MH is one of the few airlines, or maybe the only one who does this. They can always not do those 2x/3x elite points promotion to control the crowd.

[jahur 0]

5 minutes ago, JuliusWong said:

Oh dear, this won't go down well for those who want to freshen up before heading downtown for meeting. I believe MH is one of the few airlines, or maybe the only one who does this. They can always not do those 2x/3x elite points promotion to control the crowd.

I dun think they have a system to track those folks and filter them out. Not forgetting enrich is pretty much an empty skeleton dept now.

[JuliusWong 0]

The wait is almost over........

[jahur 0]

Malaysia Aviation Group posts first annual net profit in a decade

Quote

KUALA LUMPUR (March 21): Malaysia Aviation Group (MAG) has, for the first time since 2014, recorded an annual net profit. Earnings stood at RM766 million in 2023, compared with a net loss of RM344 million in 2022, driven by robust traffic in the premium segment, active capacity management and stronger yield for the group's passenger segment.

Besides that, MAG also attributed the improved performance to its intensified international network flow and deep partnership collaborations.

"These were achieved despite higher operational and labour costs, a weaker ringgit, challenges in supply chains due to increasing costs and uncertain delivery commitments, fuel prices, and elevated interest rates," MAG group managing director Datuk Captain Izham Ismail said at a press conference here on Thursday. 

Net profit finally. Hopefully this momentum is maintained or improved.

[jahur 0]

1 hour ago, JuliusWong said:

The wait is almost over........

Hints economy class is also having a makeover and will also be installed on the 350s Y class.

[jahur 0]

 

 

 

Edited March 21 by jahur

[KK Lee 5]

3 hours ago, JuliusWong said:

The wait is almost over........

Mas has a record of over promised and under delivered.

 

2 hours ago, jahur said:

Malaysia Aviation Group posts first annual net profit in a decade

Net profit finally. Hopefully this momentum is maintained or improved.

Whether could sustain is another matter.

[Craig 0]

The business cabin looks fantastic. I am really looking forward to it. Thank you Jahur for the sneak peek

MH also teased (is their social media team finally waking up :p) about 3 new destinations that will be announced soon.

Goa, Trichy, Vizag, Guwahati, and Kolkata (a bit tricky for CCU as there aren't sufficient unallocated seats left) are among the few Indian destinations MH have set their sights on in the medium term. 

15 minutes ago, KK Lee said:

Mas has a record of over promised and under delivered.

Whether could sustain is another matter.

You sound fun at parties.

Edited March 21 by Craig

[JuliusWong 0]

40 minutes ago, Craig said:

The business cabin looks fantastic. I am really looking forward to it. Thank you Jahur for the sneak peek

MH also teased (is their social media team finally waking up :p) about 3 new destinations that will be announced soon.

Goa, Trichy, Vizag, Guwahati, and Kolkata (a bit tricky for CCU as there aren't sufficient unallocated seats left) are among the few Indian destinations MH have set their sights on in the medium term. 

You sound fun at parties.

Hahahaha! The new J class is worth the wait. I was kind of mind blown when I watched the video. However the Y class can be better, especially the Y+. Let's hope the maintenance can keep up with the new fleet.

[JuliusWong 0]

New routes:

1. Chiang Mai, Thailand
2. Danang, Vietnam
3. Male, Maldives

Chiang Mai and Male are route resumption. Danang is new.

Male was last flown back in 2015 with 1x daily with B737-800. Chiang Mai was dropped back in 1997/1998 Asian Financial Crisis era.

[Craig 0]

It's not Chelsea, but it's Manchester United that MH has signed a global partnership with. A bit odd considering MH doesn't even fly to MAN.

Quote

Manchester United and Malaysia Airlines have announced a multi-year partnership which will see the award-winning airline become the club’s official commercial airline. As an established and respected name in global aviation, Malaysia Airlines prides itself on representing Malaysia and providing best-in-class customised experiences for its passengers, reflecting the Malaysian culture of a welcoming and hospitable service.

 

[Riza 0]

3 hours ago, JuliusWong said:

New routes:

1. Chiang Mai, Thailand
2. Danang, Vietnam
3. Male, Maldives

Chiang Mai and Male are route resumption. Danang is new.

Male was last flown back in 2015 with 1x daily with B737-800. Chiang Mai was dropped back in 1997/1998 Asian Financial Crisis era.

DAD is a nice addition to the network to this 'Miami of Asia'. AK has 3x daily + OD daily to this station. Short hop 20 minutes ride from the airport & u are already at long stretch of wide sandy beach. Their urban planning is nice too. And coffee. Quiet alternate to both Phuket & Bali.

So MH does has extra frame for these 3 routes?

[Craig 0]

Flights to MLE (7x weekly), DAD (7x weekly), CNX (5x weekly) are now open for sale. 

Malé, Maldives to begin 01AUG2024 (a rather odd morning departure ex-KUL instead of an evening departure, but great for pax who doesn't want to stay a night in Malé itself before hopping to an island next day). Return flights in Y starts from MYR 839 and J from MYR 2,195.
MH485 KUL1010 – 1125MLE 73H D
MH484 MLE1230 – 2010KUL 73H D

Chiang Mai, Thailand to begin 15AUG2024.
MH772 KUL0950 - 1140CNX 73H 157
MH772 KUL1150 - 1340CNX 73H 46
MH773 CNX1235 – 1635KUL 73H 157
MH773 CNX1440 – 1840KUL 73H 46

Da Nang, Vietnam to being 24SEP2024
MH748 KUL0845 - 1025DAD 73H 246
MH748 KUL1200 - 1340DAD 73H Dx246
MH749 DAD1125 – 1520KUL 73H 246
MH749 DAD1440– 1835KUL 73H Dx246

Now this is a bit surprising for MH in a good way. They are announcing these new/resumption flights months in advance to build awareness and marketing; unlike TRV, ATQ, AMD, KTJ etc. which goes along the lines of "oh hey, btw, we are laughing flights to these cities tomorrow". And starting off with daily flights right off the bat (except CNX but still a decent 5x flight). Those KTJ, PKU, TRV etc. all started with 2-3 weekly.

[JuliusWong 0]

52 minutes ago, Riza said:

DAD is a nice addition to the network to this 'Miami of Asia'. AK has 3x daily + OD daily to this station. Short hop 20 minutes ride from the airport & u are already at long stretch of wide sandy beach. Their urban planning is nice too. And coffee. Quiet alternate to both Phuket & Bali.

So MH does has extra frame for these 3 routes?

Woah, sounds like a good destination to go but I do hope the "Miami of Asia" does not include gun, babes and drugs part. Hahaha!

I believe with the delivery of B737-MAX8, the B737-800NG now has some slack to accommodate to the new routes. Eventually A339neo delivery will take over some of the current routes plied by B737-800NG, thus freeing up more airframes for regional lesser demand routes.

[JuliusWong 0]

4 minutes ago, Craig said:

Flights to MLE (7x weekly), DAD (7x weekly), CNX (5x weekly) are now open for sale. 

Malé, Maldives to begin 01AUG2024 (a rather odd morning departure ex-KUL instead of an evening departure, but great for pax who doesn't want to stay a night in Malé itself before hopping to an island next day). Return flights in Y starts from MYR 839 and J from MYR 2,195.
MH485 KUL1010 – 1125MLE 73H D
MH484 MLE1230 – 2010KUL 73H D

Chiang Mai, Thailand to begin 15AUG2024.
MH772 KUL0950 - 1140CNX 73H 157
MH772 KUL1150 - 1340CNX 73H 46
MH773 CNX1235 – 1635KUL 73H 157
MH773 CNX1440 – 1840KUL 73H 46

Da Nang, Vietnam to being 24SEP2024
MH748 KUL0845 - 1025DAD 73H 246
MH748 KUL1200 - 1340DAD 73H Dx246
MH749 DAD1125 – 1520KUL 73H 246
MH749 DAD1440– 1835KUL 73H Dx246

Now this is a bit surprising for MH in a good way. They are announcing these new/resumption flights months in advance to build awareness and marketing; unlike TRV, ATQ, AMD, KTJ etc. which goes along the lines of "oh hey, btw, we are laughing flights to these cities tomorrow". And starting off with daily flights right off the bat (except CNX but still a decent 5x flight). Those KTJ, PKU, TRV etc. all started with 2-3 weekly.

I think TRV, ATQ, AMD and KTJ launching were not close to any major travel fair, but CNX, DAD and MLE will be officially launch during this weekend MATTA fair. MAG has a humongous pavilion ready to greet all visitors.

RM839 to MLE return is really affordable btw, but changing to USD to use locally is another story T.T

Edited March 22 by JuliusWong