MAS Privatisation

[leon t 0]

IJ is more of a asset stripper in the way he handled MAS and "turned it around" into the black for a couple of years. He sold everything from MH HQ and buildings to its planes and even art pieces that MH has.

It's actually good too to have a non MAS executive to be the CEO - as an outsider will have a wider and out of the box thinking that an senior MH employee. Running an airline doesn't necessarily meant that the CEO must be from MH or another airline. The classic local example is AK's TF. What is most critical is the eye for commercial and business acumen.

[V Wong 0]

 

He would know what "Pi Mai Pi Mai Tang Tu" (loosely translated as moving back and forth, but still at the same place) is. That's the best way to describe the state of MAS right now.

Thank you for the translation - didn't know the meaning of that phrase until now. One learns new thing everyday!

[flee 5]

This will be my last contribution to Malaysianwings. I am leaving the country next week.

I say goodbye to my friends, especially flee an BCT and i hope that you continue to spread the word.

 

It was a pleasure to communicate with all of you. If i have stepped on some toes, my apologies. It was for clarification only.

 

Long live MWings. Keep up the good work. And tell it as it is.

 

Cheers

A, On second retirement.

 

Thanks for giving us here in MW an extra dimension!

 

Have a safe journey home, Art.

[KK Lee 5]

Dr Mahathir also demanded that ailing national carrier Malaysia Airlines be turned over to tycoon Tan Sri Syed Mokhtar Al-Bukhary.

 

- See more at: http://www.themalaysianinsider.com/malaysia/article/7-reasons-dr-m-withdraws-support-for-najib-says-report#sthash.kmK3vDmh.dpuf

 

Pemandu chief Datuk Seri Idris Jala has dismissed speculation that he would return to Malaysia Airlines.

 

"I've seen online reports speculating that I will be returning to MAS. I am not heading there," said the former CEO of MAS in a Twitter posting this morning.

 

- See more at: http://www.themalaysianinsider.com/malaysia/article/idris-jala-says-not-going-back-to-mas#sthash.FLzlL1vM.dpuf

Edited August 21, 2014 by KK Lee

[Johan Z 0]

Thank you for the translation - didn't know the meaning of that phrase until now. One learns new thing everyday!

No worries. I didn't know what does it mean until I was 12/13, even though I heard it every day, and was born and bred in Kedah and Penang.

[Mohd Azizul Ramli 2]

Smart move. Better get off a sinking boat if you don't want to be drown. This will also help the 20% culling process.

http://www.themalaysianinsider.com/malaysia/article/mas-down-to-3000-crew-members-after-double-tragedies-says-union

[Johan Z 0]

Except overtime cabin crew is really a worry.

[V Wong 0]

Smart move. Better get off a sinking boat if you don't want to be drown. This will also help the 20% culling process.

http://www.themalaysianinsider.com/malaysia/article/mas-down-to-3000-crew-members-after-double-tragedies-says-union

Unfortunately it is the pride of MH, its stellar cabin crew that deserted ship

[Mohd Azizul Ramli 2]

Because the deadwood are smart. Stay put and they will be transferred to the new ship. Monthly salary runs as usual, can do work at usual pace, just don't care whatever happen to the company because the gomen will save it, always on standby to make big hoohas if threatened. Life has to go on even without integrity. Accountability what?

 

Ok just in. http://www.themalaysianinsider.com/malaysia/article/malaysia-airlines-to-cut-about-a-quarter-of-jobs-in-restructuring

 

- 6,000 jobs cut

- route cuts

- Najib to sign off the restructuring plan

- terminated staff to be offered jobs at other GLCs

- sale of MAS Engineering

- new CEO and senior managements

[flee 5]

Can Putrajaya stomach MAS revival plans?

 

The resolve of the Najib administration to match its tough talk about doing everything possible to revive loss-making Malaysia Airlines (MAS) will be tested tomorrow when state asset manager Khazanah Nasional Bhd presents its much-awaited plan to the Cabinet.

 

See more at: http://www.themalaysianinsider.com/malaysia/article/can-putrajaya-stomach-mas-revival-plans#sthash.eOZEclbn.dpuf

[kandiah k 0]

"Some of the routes that are expected to be cut or pared down include flights to popular French capital Paris, the Chinese city of Kunming and Jeddah in Saudi Arabia as the airline can leverage on its Oneworld alliance."

[flee 5]

Nursing Malaysia Airlines to health may cost RM5bil

 

http://www.thestar.com.my/Business/Business-News/2014/08/26/Nursing-MAS-to-health-may-cost-up-to-RM5bil-over-next-3-years/

[flee 5]

"Some of the routes that are expected to be cut or pared down include flights to popular French capital Paris, the Chinese city of Kunming and Jeddah in Saudi Arabia as the airline can leverage on its Oneworld alliance."

oneworld could mean a strategic tie up with QR - similar to the QF/EK tie up.

 

MH might just hang on to its LHR slots and divert the rest of the EU traffic to DOH. That way, they can immediately retire all their B772s while the remainder of the A380s just fly KUL-LHR and KUL-DOH.

 

The new DOH airport should be a nice place for a connecting flight on QRs new B787s and A380s, shouldn't it?

[kandiah k 0]

Sounds like a good deal but it will be sad to see MH cut all those routes after all these years. However, if that is the way to sustain MH then so be it. I was also thinking they could form a partnership with BA at some point for this purpose, allowing passengers to fly into LHR and connect on other flights to Europe and the Americas. Perhaps BA could strike a deal with MH that way on top of their existing code share deal with AA through LHR.

[flee 5]

Well there are also the KL code shares to consider. MH has a long standing code share agreement and I am sure their relationship with KL is far closer than their relationship with BA.

 

For connection to the Americas, MH can connect with AA via LHR and NRT. MH can also connect via CX in HKG, another oneworld partner.

[Waiping 12]

Then MH can be a plane-less airline!

[KK Lee 5]

Then MH can be a plane-less airline!

Before mh took delivery of 738, mh was practically a virtual airline, didn't own any plane.

Edited August 26, 2014 by KK Lee

[Chris Tan 0]

For connection to the Americas, MH can connect with AA via LHR and NRT. MH can also connect via CX in HKG, another oneworld partner.

CX fares out of KUL are generally reasonable. Unless the MH codeshare fares are even lower it won't be of much use for most.

[Mike P 0]

Did JL really terminate many routes during the BTP?

[flee 5]

Yes, unprofitable routes were cancelled and uneconomic aircraft were retired.

 

Case study: http://www.nippon.com/en/currents/d00051/

Where Should MAS Land?

 

See: http://ir.chartnexus.com/mas/doc/analyst_reports/RHB_MAS%20restructuring_13Jun2014.pdf

[Mohd Azizul Ramli 2]

"Some of the routes that are expected to be cut or pared down include flights to popular French capital Paris, the Chinese city of Kunming and Jeddah in Saudi Arabia as the airline can leverage on its Oneworld alliance."

 

oneworld could mean a strategic tie up with QR - similar to the QF/EK tie up.

 

MH might just hang on to its LHR slots and divert the rest of the EU traffic to DOH. That way, they can immediately retire all their B772s while the remainder of the A380s just fly KUL-LHR and KUL-DOH.

 

The new DOH airport should be a nice place for a connecting flight on QRs new B787s and A380s, shouldn't it?

 

Sounds like a good deal but it will be sad to see MH cut all those routes after all these years. However, if that is the way to sustain MH then so be it. I was also thinking they could form a partnership with BA at some point for this purpose, allowing passengers to fly into LHR and connect on other flights to Europe and the Americas. Perhaps BA could strike a deal with MH that way on top of their existing code share deal with AA through LHR.

 

Well there are also the KL code shares to consider. MH has a long standing code share agreement and I am sure their relationship with KL is far closer than their relationship with BA.

 

For connection to the Americas, MH can connect with AA via LHR and NRT. MH can also connect via CX in HKG, another oneworld partner.

 

• Any suspension or even a frequency cut to CDG is shocking because it will result in an excess of A380.
• KMG is understandable, 3-4 weekly frequency with a B738, almost no impact. I think MH also code share with CZ to KMG.
• JED is another shocker. In my opinion, if there is a Middle East route to be cut, it has to be DXB. JED has a lot of O&D traveller. Going to umrah or hajj with a transit somewhere is quite weird for a self proclaimed Islamic country like Malaysia.

But since details of it is still unknown (whether frequency cut or suspension), I think Paris and Jeddah will get a frequency cut whilst Kunming will be suspended.

 

I am still not sure if cutting Paris from its current daily frequency is a wise desicion in the long run because CDG is one of the 3 hubs where MH connects with AA for their US bound codeshare flights. http://airlineroute.net/2013/06/24/aamh-codeshare-jun13/ But I understand if MH wants to consolidate its codeshare connection hub in LHR. But then again, why cut Paris if FRA (another hub where MH connects with AA for US bound flights) is only a 5 weekly B772? Wouldn't it be wiser to maintain daily A380 to Paris but cut the 5 weekly B772 FRA instead and codeshare with BA/AB to FRA?

 

Another issue if LHR is going to be so important is why there is no codeshare agreement sign with BA at all?

 

Where the excess A380 is going to be deployed?

I can't think of any other destinations where the A380 can be deployed, except for the followings:

• Sydney - CAPA reported excess of capacity. Still SYD would be a viable candidate to replace CDG for the A380. MH did announced SYD as an A380 destination before cancelling it. http://airlineroute.net/2012/06/05/mh-syd-nov12/ If SYD gets A380, daily frequency will be reduced from 3 daily to 2 daily only.
• Amsterdam - Amsterdam has long since being marked as an A380 destination candidate. Loads were always high. Unfortunately, as a proceed from the MH17 tragedy, I am not sure if the A380 capacity can sustain the loads ex AMS. But AMS is a likely A380 candidate.

Disposal of excess A380s is highly unlikely.

 

There is still no clear indication that MH and QR will sign closer code share agreement. I am still not convinced that even if such agreement is signed, MH will serve DOH with an A380. QR serves KUL 2 daily (was 3 daily seasonally before?). MH opens up DOH with daily A380 is a long shot.

 

These few days are going to be sleepless night for some.

[flee 5]

Well, A380 to DOH is doable if MH only operates KUL-LHR and suspends all its other routes to EU and passengers connect at DOH.

[KK Lee 5]

Well, A380 to DOH is doable if MH only operates KUL-LHR and suspends all its other routes to EU and passengers connect at DOH.

 

Unless MH form a duopoly with QR ex-KUL, MH ticket to EU via DOH is unlikely will be cheaper than QR. After MH pax experienced QR superior service, they are likely to abandon MH.

[kandiah k 0]

Interesting article by RHB

[flee 5]

Unless MH form a duopoly with QR ex-KUL, MH ticket to EU via DOH is unlikely will be cheaper than QR. After MH pax experienced QR superior service, they are likely to abandon MH.

That is correct - it was the dilemna that JAL went thru; whether it wanted to be a low fare carrier or whether it wanted to be a premium one. JAL chose to upgrade its product, improve its service and charged higher fares. Can Khazanah come up with a comprehensive plan to upgrade MH and propel it into the premium arena?

 

This is where Firefly has a role to play. MH's domestic and short to medium haul regional routes should be turned over to Firefly. MH can then operate a full wide body long haul fleet with premium product. That way, MH can pursue upmarket customers while Firefly serves the lower end of the FSC or hybrid market.

Edited August 26, 2014 by flee