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MAS Privatisation

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13 hours ago, JuliusWong said:

Apart from that they took quite aggressive steps to reduce loss, raising capital.

  • Reduce total number of employees from 19,000- 21,000 to about 9,000-11,000 by the end of this year. However, they will start recruiting again to reach the target of 13,000-15,000 in 2025.
  • Travel privilege for current employees will be getting cut down. No more ticket offer for former employees and family member of deceased employees(!) (except those who participated in their MSS program)
  • Merging some divisions and downgrading management level for employees from 8 to 5 layers.
  • Reducing the number of executives from 740 to 500. This initiatives has been completed.
  • Selling off staff training center building and various office space including Headquarter to shore up capital.
  • Holding warehouse sales to sell off Dom Perignon, Veuve Cliquot, salt and pepper shakers, and every inflight amenities, past and present generations.
  • Reduction of pilot from 1,400 to 905. 495 pilots to be made redundant. All remaining 905 pilot will receive new contract with new salary and benefits schedule on 18th February 2021.
  • Leasing or buying another 13 new widebodies and 10 narrowbodies, if the plan is approved by restructuring governing board. This include 10 B787 aircraft, bringing total to 18. Another 3 B77W which are now fully built and ready for delivery. 10 A320neo narrowbodies would be for Thai Smile replace current older A320ceo. 
  • Selling off 42 surplus aircraft, as noted above: 
    • 10 x Boeing 747-400s
    • 2 x Airbus A380-800s
    • 12 x Boeing 777-200s
    • 6 x Boeing 777-300s
    • 3 x Airbus A340-500s
    • 6 x Airbus A340-600s
    • 1 x Airbus A300-600
    • 2 x Boeing 737-400s

While Thai Airways International Group has been quite upfront with their restructuring plan, Malaysia Airlines Group has been quiet..........like very quiet.

Thai Airways fleet looks like an aircraft museum!

On 2/26/2021 at 3:00 PM, Chris Tan said:

I can imagine the experts bashing MH in the not-so-distant future for its short sighted fleet renewal plans -- why didn't MH take advantage of lower rates to renew their fleet, the average age in 2021 was almost 9 years old, why wait till 2025, SQ/CX/VN/TG/GA/everyone else already have shiny new planes, how can they serve so many destinations with only 6 A350s, etc etc.

Anyway, I hope they'll keep the experts fully informed of their decision making. The experts are the ones who'll determine the direction of our beloved MH.

MAG can't really do fleet planning without a strategic long term plan. That is why they are so quiet on these matters. The Khazanah bailout is only enough to sustain current flying activities but leaves little for future development.

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19 hours ago, JuliusWong said:

Apart from that they took quite aggressive steps to reduce loss, raising capital.

  • Reduce total number of employees from 19,000- 21,000 to about 9,000-11,000 by the end of this year. However, they will start recruiting again to reach the target of 13,000-15,000 in 2025.
  • Travel privilege for current employees will be getting cut down. No more ticket offer for former employees and family member of deceased employees(!) (except those who participated in their MSS program)
  • Merging some divisions and downgrading management level for employees from 8 to 5 layers.
  • Reducing the number of executives from 740 to 500. This initiatives has been completed.
  • Selling off staff training center building and various office space including Headquarter to shore up capital.
  • Holding warehouse sales to sell off Dom Perignon, Veuve Cliquot, salt and pepper shakers, and every inflight amenities, past and present generations.
  • Reduction of pilot from 1,400 to 905. 495 pilots to be made redundant. All remaining 905 pilot will receive new contract with new salary and benefits schedule on 18th February 2021.
  • Leasing or buying another 13 new widebodies and 10 narrowbodies, if the plan is approved by restructuring governing board. This include 10 B787 aircraft, bringing total to 18. Another 3 B77W which are now fully built and ready for delivery. 10 A320neo narrowbodies would be for Thai Smile replace current older A320ceo. 
  • Selling off 42 surplus aircraft, as noted above: 
    • 10 x Boeing 747-400s
    • 2 x Airbus A380-800s
    • 12 x Boeing 777-200s
    • 6 x Boeing 777-300s
    • 3 x Airbus A340-500s
    • 6 x Airbus A340-600s
    • 1 x Airbus A300-600
    • 2 x Boeing 737-400s

While Thai Airways International Group has been quite upfront with their restructuring plan, Malaysia Airlines Group has been quiet..........like very quiet.

Knowing mab ill probably head to nowhere with no concrete plan and heading with just 3.5bil to operation to sustain operation to 2025.

Edited by jahur

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On 2/26/2021 at 3:00 PM, Chris Tan said:

I can imagine the experts bashing MH in the not-so-distant future for its short sighted fleet renewal plans -- why didn't MH take advantage of lower rates to renew their fleet, the average age in 2021 was almost 9 years old, why wait till 2025, SQ/CX/VN/TG/GA/everyone else already have shiny new planes, how can they serve so many destinations with only 6 A350s, etc etc.

Anyway, I hope they'll keep the experts fully informed of their decision making. The experts are the ones who'll determine the direction of our beloved MH.

I seem to recall MH already committing to a fleet renewal. Then and10t went and cancelled it all.

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Malaysia Aviation Group to accept 737 MAX jet deliveries from 2024

https://www.theedgemarkets.com/article/malaysia-aviation-group-accept-737-max-jet-deliveries-2024

 

Malaysia Airlines parent says 'never had’ M&A conversations with AirAsia amid Covid-19

https://www.theedgemarkets.com/article/malaysia-airlines-parent-says-never-had-ma-conversations-airasia-amid-covid19

 

Malaysia Airlines parent Malaysia Aviation Group denies mandating Goldman Sachs to guide aviation group's long-term business plan

https://www.theedgemarkets.com/article/malaysia-airlines-parent-malaysia-aviation-group-denies-mandating-goldman-sachs-guide

 

Malaysia Airlines owner Malaysia Aviation Group aims to break even by 2023 through Long Term Business Plan 2.0 — CEO

https://www.theedgemarkets.com/article/malaysia-airlines-owner-malaysia-aviation-group-aims-breakeven-2023-through-long-term

Edited by flee

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Malaysia Airlines has officially put their six A380s up for sale:

https://www.linkedin.com/posts/malaysia-airlines_open-tender-noticemab-pesawat-sdn-bhd-activity-6821300641286238208-VEVt

OPEN TENDER NOTICE: MAB Pesawat Sdn Bhd (MABP) is conducting an open tender for the sale of six (6) AIRBUS 380-800 aircraft and/or its components. MABP invites interested buyers to send their proposals via email to: aircraft.project@malaysiaairlines.com cc vendor@malaysiaairlines.com

Please send your interest of participation by 12pm (Malaysia Time, GMT +8) on Thursday, 12 August 2021.

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https://www.linkedin.com/posts/malaysia-airlines_mhxjalsubmp4-activity-6827855583933292544-BqLu

https://www.malaysiaairlines.com/hq/en/experience/japan-airlines.html

July 2021 marks the first anniversaryof MH-JL partnership. Apart from the KUL-NRT joint venture, anyone knows what other plans they did or will be doing? 

Edited by JuliusWong

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MH only order 25 737 max, while right now it has 40-50 737NG, so theres seem to be a gap in the fleet planning, are MH considering to replace some of the 737NG with maybe a regional jet? Like embraer?

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22 hours ago, fenandri said:

MH only order 25 737 max, while right now it has 40-50 737NG, so theres seem to be a gap in the fleet planning, are MH considering to replace some of the 737NG with maybe a regional jet? Like embraer?

I am in opinion MH will not try to complicate things after their fleet simplification soe years ago. Airbus for long haul and B737 for short haul, ATR72 and Twin Otter for rural services. Adding Embraer will be adding another fleet type and there is no regional MRO support for such fleet. Nearest is in Australia. Unless Embraer fleet grows substiantially over the next few years in Asia Pacific, adding Embraer will bleed MH's coffer.

25 B73MAX for now is sufficient as some of the B737NG are still very young, MH will most definitely make additional order when time comes.

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8 hours ago, JuliusWong said:

I am in opinion MH will not try to complicate things after their fleet simplification soe years ago. Airbus for long haul and B737 for short haul, ATR72 and Twin Otter for rural services. Adding Embraer will be adding another fleet type and there is no regional MRO support for such fleet. Nearest is in Australia. Unless Embraer fleet grows substiantially over the next few years in Asia Pacific, adding Embraer will bleed MH's coffer.

25 B73MAX for now is sufficient as some of the B737NG are still very young, MH will most definitely make additional order when time comes.

I guess their previous strategy has proven to be failed as they cant fill up the seats in a 150-160 seater jet (737 max 8 has even more seats than 737 ng). A regional jet can serve secondary cities better and provide more frequency. RJ can easily served KL-chiang mai, KL-cebu, KL-makassar.

Im also thinking the 737 max will be deployed to several routes that previously served by A330, like KL-tokyo, KL-seoul, KL-delhi. A 6-7 hour flight in a narrow bodied become more common these days.

Edited by fenandri

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On 10/6/2021 at 6:21 PM, fenandri said:

I guess their previous strategy has proven to be failed as they cant fill up the seats in a 150-160 seater jet (737 max 8 has even more seats than 737 ng). A regional jet can serve secondary cities better and provide more frequency. RJ can easily served KL-chiang mai, KL-cebu, KL-makassar.

Im also thinking the 737 max will be deployed to several routes that previously served by A330, like KL-tokyo, KL-seoul, KL-delhi. A 6-7 hour flight in a narrow bodied become more common these days.

On the contrary, the B738 is a great aircraft for domestic and ASEAN services - this has enabled MH to reduce CASK. Going forward, the B38M will probably be better for longer routes like PER, HKG, secondary Indian and Chinese destinations. Tokyo, Taipei and Seoul should still be a widebody destinations due to cargo. 

Edited by flee

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Quote

the airline plans to issue a request for proposal (RFP) for wide-body aircraft to replace its ageing A330s in the first quarter of 2022 (1Q2022) and aims for entry into service by the second half of 2023. 

I think B787s will probably be a step too far as it will involve a lot of new infrastructure investment. Will more A359s (in regional configuration) or A339s be more suitable? I wonder if they will replace some A330s with A321XLRs - this will give them some flexibility in scheduling, enabling more frequency without overcapacity. 

Quote

StanChart tasked to find strategic investor for cargo unit

It looks like MASKargo will become a significant profit centre from now on - will they acquire more freighters, either P2Fs or new builds?

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20 hours ago, flee said:

I think B787s will probably be a step too far as it will involve a lot of new infrastructure investment. Will more A359s (in regional configuration) or A339s be more suitable? I wonder if they will replace some A330s with A321XLRs - this will give them some flexibility in scheduling, enabling more frequency without overcapacity. 

 

Ops and crew definitely prefers B787-9, the efficiency benefits surpasses a330neo if taking on the long term aspects on fuel burn and range. But as u said It is cost prohibitive initially to acquire it and to setup for it vs A330neo when there's already the A333+A350 commonality around.

Some of the rumors going around is Msia gov and the French might be intervening and asking MAG to take part of the cancelled orders from Airasia X. But i would likely treat this with a grain of salt.

Edited by jahur

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2 hours ago, jahur said:

Ops and crew definitely prefers B787-9, the efficiency benefits surpasses a330neo if taking on the long term aspects on fuel burn and range. But as u said It is cost prohibitive initially to acquire it and to setup for it vs A330neo when there's already the A333+A350 commonality around.

Some of the rumors going around is Msia gov and the French might be intervening and asking MAG to take part of the cancelled orders from Airasia X. But i would likely treat this with a grain of salt.

If it is B787, the B78X is a more direct replacement for A333. So they may need to have B789/B78X combo to replace the A332/333. And what will they choose to replace the A332Fs?

Never say never - D7 may fold and if that happens, MH taking over some of D7's order book may be less of a fantasy. Furthermore, D7 will not be taking the A339 till about 2027 - so Airbus is worried that there may not be enough customers taking deliveries. That may jeopardise the A330Neo programme. There are a lot of pieces to this jigsaw!

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1 hour ago, flee said:

If it is B787, the B78X is a more direct replacement for A333. So they may need to have B789/B78X combo to replace the A332/333. And what will they choose to replace the A332Fs?

Never say never - D7 may fold and if that happens, MH taking over some of D7's order book may be less of a fantasy. Furthermore, D7 will not be taking the A339 till about 2027 - so Airbus is worried that there may not be enough customers taking deliveries. That may jeopardise the A330Neo programme. There are a lot of pieces to this jigsaw!

Only recall the a333 replacement is between the b787-9 and a330-900neo and they are still the prime candidates. Maskargo's having a small dilemma as 9M-MUC left years ago. The a332f are also impacted by limited range to Europe especially AMS being load restricted by half of what it can carry over. The only similar candidates with no range issue is either the b767-300F(carrying  negigble 8-10tonnes less cargo) or the upcoming a350freighter(significant more payload) .  B777/b747freighter volume capability is not maskargo's turf.

Everything with it is still a rumor. Only thing that seems to be confirmed is the A330 replacement is scheduled for entry Q2 2023 and it may not even be from D7 slots. No model has been disclosed. Both 789s and a339s are pretty much easier to get and they both can meet the dateline delivery. So not much clear cut which model is selected. Everything is pretty much zip tight currently. So pretty normal to see lots of speculations and what ifs popping. 

Edited by jahur

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On 12/31/2021 at 7:17 PM, flee said:

Special Report: Malaysia Airlines turns cash-flow positive in October, 2023 breakeven target in sight

https://www.theedgemarkets.com/article/special-report-malaysia-airlines-turns-cashflow-positive-october-2023-breakeven-target-sight

Without sharing network planning, it is difficult to judge whether 'cash flow positive in october 2023' is realistic or not. if previous attitude remain, mas will need ltbt x.0.

rm3.6 billion is sufficient to start a new airlines and have a better chance to success.

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11 hours ago, KK Lee said:

Without sharing network planning, it is difficult to judge whether 'cash flow positive in october 2023' is realistic or not. if previous attitude remain, mas will need ltbt x.0.

rm3.6 billion is sufficient to start a new airlines and have a better chance to success.

Cash flow positive does not mean it is making profits either.

They do not appear to have any strategy or roadmap for a sustainable airline in the future as they seem to indicate that they will get cash injections from Khazanah from time to time!

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There is not much detail but it sounds like a sale and leaseback of their whole order. It makes sense since MAG does not have very strong financials.

Lets hope that they have the sense to configure the aircraft for international flights, with a good business cabin and economy seats with more legroom than the current B738s. The Max should be used to fly the longer and more premium routes.

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3 hours ago, flee said:

There is not much detail but it sounds like a sale and leaseback of their whole order. It makes sense since MAG does not have very strong financials.

Lets hope that they have the sense to configure the aircraft for international flights, with a good business cabin and economy seats with more legroom than the current B738s. The Max should be used to fly the longer and more premium routes.

Afaik ALC has no max 10 on its order book until 2025. Mab Initial 25 looks like will be fix max 8 which does not sport the lie flat seat in business class. Very likely the max 10(very much needed for secondary indian routes asap) will be from the optional boeing order and will only enter the fleet quite later than anticipated. 

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8 hours ago, jani said:

Anyone heard anything about MH launching DOH?

In the public domain now.

https://www.malaysiaairlines.com/us/en/news-article/2022/malaysia-airlines-expands-network-new-direct-flight-doha.html

 

Surprised they're going daily right away, when they're nowhere near restoring their international network. Other than being a QR feeder I can't imagine the rationale for this route.

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