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MAS Privatisation

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Out of curiosity, does MH plan to return to South Africa (JNB/CPT)? 

19 hours ago, JuliusWong said:

And with how the government is run and how Malaysians' working attitude even if MH flies to the moon tomorrow, nobody will take them seriously. 

Why bother going to North America or Europe just to be an airline the public can take serious with? Do you have the pax numbers to sustain such operation? With RM depreciating like a falling brick, your O&D market numbers are so much lower compared, how to justify flying to both region?

Just to give you an example, Türkiye isn’t exactly known to be a well run country nor a country with strong currency but an extremely well run airline and airport. Look at all the intercontinental carriers flying to IST. 

From what I’ve been told, the numbers are there to justify for direct flights between CDG/FRA/MXP and KUL (and of course AMS).

Ringgit is falling, but not a doomsday scenario like many Malaysians are making it out to be. Depreciating against the USD/SGD/VND sure. But against a basket of currencies, they are doing quite ok on YTD, y-o-y and some even to a 5-year period. 
 

A bit off topic but you can’t compare MYR to SGD. SGD is a huge financial hub and a major importer of goods - they really can’t just let their currency depreciate. Investors love to buy SGD bonds/equities/holdings etc. because it’s a safe haven and doesn’t really fluctuate much against other major currencies. 
 

USD - well the Feds are rising interest rates and it’s also considered a safe haven. Whenever there’s trouble in the world (aka this past decade?), investors will usually pull out of other currencies and put it in USD. The unfortunate thing is that almost every thing in the world is traded in USD. So we have to live with appreciating USD. 

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3 hours ago, Craig said:

Out of curiosity, does MH plan to return to South Africa (JNB/CPT)? 

Just to give you an example, Türkiye isn’t exactly known to be a well run country nor a country with strong currency but an extremely well run airline and airport. Look at all the intercontinental carriers flying to IST. 

From what I’ve been told, the numbers are there to justify for direct flights between CDG/FRA/MXP and KUL (and of course AMS).

Ringgit is falling, but not a doomsday scenario like many Malaysians are making it out to be. Depreciating against the USD/SGD/VND sure. But against a basket of currencies, they are doing quite ok on YTD, y-o-y and some even to a 5-year period. 
 

A bit off topic but you can’t compare MYR to SGD. SGD is a huge financial hub and a major importer of goods - they really can’t just let their currency depreciate. Investors love to buy SGD bonds/equities/holdings etc. because it’s a safe haven and doesn’t really fluctuate much against other major currencies. 
 

USD - well the Feds are rising interest rates and it’s also considered a safe haven. Whenever there’s trouble in the world (aka this past decade?), investors will usually pull out of other currencies and put it in USD. The unfortunate thing is that almost every thing in the world is traded in USD. So we have to live with appreciating USD. 

I only have a question for you if CDG/FRA/MXP/AMS are so lucrative, why would Christop Mueller chopped them off at the same place?

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16 hours ago, Chris Tan said:

You're looking at everything from a Malaysian-only perspective. People flying in and out of Europe and North America include foreigners who don't give two hoots our dysfunctional domestic politics. You have a consistently good product, good champagne, and a decent network? People will notice. Do you think SQ built their brand by being a sad regional carrier for half a century?

And I don't see the relevance of the M40/T20 in this discussion. Do you think the B40 will go on a 2-week California + Disneyland trip even if the MYR had the strength of the SGD? Conversely, what better time to attract people to your country than when you have a weak currency?

I doubt anyone here expects MH to miraculously turn into a profit-making machine with a slightly expanded network. But if the choice were between a money pit with nothing to show for, and a money pit that brings tourists in, puts KLIA on the radar while delivering a modicum of recognition to the country, I know which one I'd take.

 

This is where you are wrong. A country image, good governance and stability have everything to do with travel and tourism. Why would people flying in and out of Europe wants to stop by Malaysia when first, Bangkok offers them more bang for their bucks or second, those rich would want to go to Malaysia when Singapore offers more international flairs with much more high end restaurants, hotels and amusement parks? Charter airlines flying into Thailand endlessly with 530 pax capacity B744? MH doesn't even have consistent hardware and software, both inside and outside, who would want to expect good champagne, which by the way MH only offers for flight above 4 hours. How long ago you see a Cuti-Cuti Malaysia advertisement in Europe and the North America? previously Tourism Malaysia has offices presence in every major cities in the world, an extension from our embassy or high comm office. Now they have shrunk into insignificant. Those markets have been obliterated by gomen who has been solely focusing so much on China, ignoring those high income tourists from Europe, Australia/ NZ, Japan and South Korea. 

Your local population buying power or income level (M40/T20) has a lot of influence on your passengers matrix. Who are willing to pay extra to fly with premium airlines without looking at price tag? Are your passengers mostly bargain hunters? When your O&D market is much weaker compared to other market, you can only rely on feeds, lots of it, to fill up your seats. How are you going to fill up the seat? Take Singapore Airlines for examples. Most of their population are pretty well off, and they have much larger international business community (expats, spouses, children etc), hence SQ is the only airline who is able to sustain three ULRs and those flight are jam packed, with high price tag. Being able to enter and exit the US and Canada without easy promotes leisure and business market. For Malaysia, we had been there before, 30 years ago, you may bumped into random Tom, Dick and Rachel Malaysians who have studied or worked in the US before, not so much nowadays. Why is it so? Compared those numbers when Malaysians could enter visa-free and those numbers after we are required visa to enter? You should be asking why Malaysia has such high B40 numbers. And yes, people do fly to long haul just for 2-weeks California + Disneyland trip, if MYR has the strength of SGD. Plenty of people do so. Otherwise why would OZ, KE, BR, JX, PR, SQ, CI, MU, CZ, AC, CA, JL, NH, UA, DL, AA and CX be mounting so many non-stop and transit flight to NA with B744/748/77W/A350/A380? Even TF said their Hawaii flight is top performer, granted it has many Japanese passengers as feeder as well. 

MH main problem is not because it is not in Europe or North America, it is an opex and human (management) problem. Fix these core problem first, before thinking big. Again back to my question, what MH/Malaysia can offer to the table?

Edited by JuliusWong

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21 hours ago, jahur said:

This is clearly what is needed to actually make MH work. But our gov made too many blunders over and over as of now none of it is made clear by them. Hence even i myself see it highly unlikely for MH to return back into Europe apart from LHR, AMS, IST are the only 2 it may consider anything else is a no go. The CEO even highlighted this on most townhall. MH has lost the european market, too many mistakes it can only work now through extended alliances and codeshare.

Hence why Endau's NWA info is unreliable. He has made few mistakes in the past as well regarding Malaysia aviation requirement especially in regards to East Malaysia RAS requirement and certification ops. Only thing that seems fishy was Mh's own CEO being very confident that MH can take 2 NWA by Q4 next year not sure if this can provide any clues on which frame or model it may be.

This Shukor guy sounds like a jilted lover when his plan to buy MH last time failed badly. Don't know why local and international press give him so much free airtime. His analysis thus far have been all off the mark. 

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18 hours ago, jani said:

I guess it means leased aircraft ie not new.

Sigh

My guess would be they will either lease new through ALC or CIT. Both are strong supporters for A330neo program and currently have unfilled order. MH is leasing B737MAX via ALC. Maybe they can cut MH a deal too. There aren't any used A339neo now sitting around looking for buyers. 

Edited by JuliusWong

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10 hours ago, JuliusWong said:

This is where you are wrong. A country image, good governance and stability have everything to do with travel and tourism. Why would people flying in and out of Europe wants to stop by Malaysia when first, Bangkok offers them more bang for their bucks or second, those rich would want to go to Malaysia when Singapore offers more international flairs with much more high end restaurants, hotels and amusement parks? Charter airlines flying into Thailand endlessly with 530 pax capacity B744? 

Funny you should mention Thailand, as if their domestic political scene is an oasis of calm. You think poverty doesn't exist there? That doesn't stop TG from flying richer folk from elsewhere into BKK, HKT and beyond. TG is hardly a model for how to run a profitable business, but for better or worse, it does put Thailand on the map.

In Singapore's case, relatively few visitors fly all the way there just for that MBS infinity pool Instagram shot. Yes, they have much more business traffic, but a lot of their non-Chinese tourists are only on stopovers because it's a convenient spot between regional attractions. Malaysia used to get a lot of that until MH slashed their international network.

10 hours ago, JuliusWong said:

MH doesn't even have consistent hardware and software, both inside and outside, who would want to expect good champagne, which by the way MH only offers for flight above 4 hours. How long ago you see a Cuti-Cuti Malaysia advertisement in Europe and the North America? previously Tourism Malaysia has offices presence in every major cities in the world, an extension from our embassy or high comm office. Now they have shrunk into insignificant. Those markets have been obliterated by gomen who has been solely focusing so much on China, ignoring those high income tourists from Europe, Australia/ NZ, Japan and South Korea. 

Your local population buying power or income level (M40/T20) has a lot of influence on your passengers matrix. Who are willing to pay extra to fly with premium airlines without looking at price tag? Are your passengers mostly bargain hunters? When your O&D market is much weaker compared to other market, you can only rely on feeds, lots of it, to fill up your seats. How are you going to fill up the seat? Take Singapore Airlines for examples. Most of their population are pretty well off, and they have much larger international business community (expats, spouses, children etc), hence SQ is the only airline who is able to sustain three ULRs and those flight are jam packed, with high price tag. Being able to enter and exit the US and Canada without easy promotes leisure and business market. For Malaysia, we had been there before, 30 years ago, you may bumped into random Tom, Dick and Rachel Malaysians who have studied or worked in the US before, not so much nowadays. Why is it so? Compared those numbers when Malaysians could enter visa-free and those numbers after we are required visa to enter? You should be asking why Malaysia has such high B40 numbers. And yes, people do fly to long haul just for 2-weeks California + Disneyland trip, if MYR has the strength of SGD. Plenty of people do so. Otherwise why would OZ, KE, BR, JX, PR, SQ, CI, MU, CZ, AC, CA, JL, NH, UA, DL, AA and CX be mounting so many non-stop and transit flight to NA with B744/748/77W/A350/A380? Even TF said their Hawaii flight is top performer, granted it has many Japanese passengers as feeder as well. 

MH main problem is not because it is not in Europe or North America, it is an opex and human (management) problem. Fix these core problem first, before thinking big. Again back to my question, what MH/Malaysia can offer to the table?

Clearly, this is becoming a chicken-and-egg rant driven by political emotion more than facts. For the benefit of everyone else, I shan't drag it further into the abyss.

But I will summarize my point: MH is going to bleed one way or another, until fundamental changes are made at the very top. I'd rather a bleeding MH that actually benefits Malaysians, than a bleeding MH that tries to become an expensive LCC. I have no fantasies about MH becoming a truly profitable global carrier like SQ, nor do I delude myself into thinking the billions pumped into MH would go into some other worthy project that benefits the rakyat. It's not my first day in Malaysia.

 

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18 hours ago, JuliusWong said:

I only have a question for you if CDG/FRA/MXP/AMS are so lucrative, why would Christop Mueller chopped them off at the same place?

My memory isn’t as good as it used to be. Remind me again, when was the MH twin tragedies and when was Mueller’s tenure again?

MH never served MXP. Malaysia never had any rights to fly into MXP. I don’t know about now after the ASEAN-EU open skies agreement. 

17 hours ago, JuliusWong said:

This is where you are wrong. A country image, good governance and stability have everything to do with travel and tourism. Why would people flying in and out of Europe wants to stop by Malaysia when first, Bangkok offers them more bang for their bucks or second, those rich would want to go to Malaysia when Singapore offers more international flairs with much more high end restaurants, hotels and amusement parks? Charter airlines flying into Thailand endlessly with 530 pax capacity B744?

 Compared those numbers when Malaysians could enter visa-free and those numbers after we are required visa to enter? You should be asking why Malaysia has such high B40 numbers. And yes, people do fly to long haul just for 2-weeks California + Disneyland trip, if MYR has the strength of SGD.

Again back to my question, what MH/Malaysia can offer to the table?

You sound like one of those Malaysians I overheard abroad when asked if Malaysia is a nice place to visit. “Malaysia? It’s so boring. Government is corrupt, dirty toilets, racist/unfair government etc. you go visit Singapore or Thailand better”. 
 

Malaysia has plenty to offer to tourists. I find it rather sad that a Malaysian (I assume you are one) doesn’t know what Malaysia has to offer. Maybe have a tour around Malaysia and see what it offers yourself? Go deep into the jungles in Sabah/Sarawak/Taman Negara and see if TH/SG have the biodiversity that we have? 
 

You said Singapore has more high end hotels or that Thailand offer better bang for the buck. Do you know that MY/KL hotel rates are the cheapest between the two?! Just compare St. Regis to St. Regis. Or MO with MO or Four Seasons to Four Seasons. And you know that a lot of “tourist activities” are much cheaper here compared to Thailand? 
 

I can assure you that no one will buy our semi conductor (our largest export) and palm oil if MYR is at parity with SGD. 

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Clearly Craig and Chris Tan need dose of reality. If Malaysia has so much to offer why aren't new airlines mounting daily non-stop flights into Malaysia? Or even current ones upping their service or bring in their largest jets? Hey, you two seems to be pro, whatever rocks your world. 

 

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1 hour ago, JuliusWong said:

Clearly Craig and Chris Tan need dose of reality. If Malaysia has so much to offer why aren't new airlines mounting daily non-stop flights into Malaysia? Or even current ones upping their service or bring in their largest jets? Hey, you two seems to be pro, whatever rocks your world. 

 

You are clearly mixing up politics and state. We have plenty to offer to tourists. What we lack is a good marketing team which everyone in here agrees. 
 

You know that Malaysia is the most competitive economy in ASEAN after Singapore? And also second in ASEAN for ease of doing business? I didn’t pull this out from my butt, but ranked by World Economic Forum and World Bank. 
 

You know that a lot of carriers are increasing their capacity to KUL? QR/MH will increase their flights to 3X daily. EY flying 781 this summer. EK is suspending KUL-AKL (no traffic rights anyway) and bringing back terminator service. TK will increase its frequency to 10x weekly. KU is returning to KUL soon. WY also increased its KUL service. KL will bring back AMS-KUL-CGK. 
 

I have given specific examples what Malaysia has to offer. But you keep dismissing it because the grass is greener. 

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And you may have forgotten that AK/D7 had a very extensive network that brought a lot of traffic into and out of Malaysia. KUL isn’t one of the top 25 busiest airports for nothing. 

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I recall I read an article saying Malaysia has a relatively high returning visitors in the visitor numbers each year. This suggests that visitors love Malaysia and would like to come back again. What lacking here is an effective and consistent marketing strategy to attract more visitors especially first time comers.

Many sources suggest that KUL is a low yield route to many airlines. Perhaps this is the reason why it is not always in the top priority for major airlines, particularly premium airlines when compare to SIN which is the region financial hub ? 

 

Edited by Kee Hooi Yen

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5 hours ago, Kee Hooi Yen said:

I recall I read an article saying Malaysia has a relatively high returning visitors in the visitor numbers each year. This suggests that visitors love Malaysia and would like to come back again. What lacking here is an effective and consistent marketing strategy to attract more visitors especially first time comers.

Many sources suggest that KUL is a low yield route to many airlines. Perhaps this is the reason why it is not always in the top priority for major airlines, particularly premium airlines when compare to SIN which is the region financial hub ? 

 

They are probably counting visitors from Singapore including the day trips to JB.

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8 hours ago, Robert said:

They are probably counting visitors from Singapore including the day trips to JB.

IIRC, Malaysia doesn’t count day trips to their visitors tally. You either have to spend more than one calendar day (pass immigration 00:01 day after arrival) or 24 hours (I am not sure which one) to be counted as a visitor. Singapore on the other hand doesn’t count Malaysians entering by road. I don’t know if any of these have changed. 

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