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Mohd Suhaimi Fariz

MAS Privatisation

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I think for SIA, theres no loss in this if it means more feeder traffic from Malaysia. Additional ancillary income from MRO, training, etc would be a plus too. So its a case of sure why not.

 

As for MAS, well done in strengthening Singapores position as an aviation hub. Its the one thing theyve always been good at.

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Well, SQ has an even larger domestic market, Indonesia!

MH did not see that in the early days while SQ moved in slowly and surely! Huge population and a growing middle class. This is why they have a first class service on their multiple daily flights to cGK!

Retrospectively its easy to say, I know, but hell, its a no brainer.

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Does the Singapore Airlines and Malaysia Airlines partnership clear the runway for a future merger?

 

Malaysia’s struggling flagship carrier has unexpectedly agreed to explore a partnership with its fierce Singaporean competitor

While there has been resistance against a future merger on grounds of national pride, some analysts say such an alliance makes good business sense

 

https://www.scmp.com/week-asia/economics/article/3016531/does-singapore-airlines-and-malaysia-airlines-partnership-clear

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Does anyone see this as another AF-KL or BA-IB to create a megahub ala AMS-CDG or LON-MAD?

 

Despite the mergers, all 4 airlines above retain their identity as flag carriers.

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It is SQ, TR and MI objective to serve as many feasible destinations as possible. If not because political sensitivity, MI could have bought regional jets to render KUL and CGK irreverent as international hub.

Which airline doesn't want to serve as many feasible destinations as possible?

 

 

Another MH favourite story was domestic routes was subsidized by international routes.

Well, ask yourself why. If the domestic market were large and high-yield enough it wouldn't need to be subsidised. When was the last time you paid hundreds of dollars on a domestic ticket in Malaysia?

 

Well, SQ has an even larger domestic market, Indonesia!

MH did not see that in the early days while SQ moved in slowly and surely! Huge population and a growing middle class. This is why they have a first class service on their multiple daily flights to cGK!

Retrospectively its easy to say, I know, but hell, its a no brainer.

Not sure I understand your argument. SQ maintains F to CGK because of the number of wealthy business travellers who commute to and from SIN.

 

There's just a lot more O&D traffic between Singapore and Jakarta (enough for SQ to sustain 8 daily widebody flights), and connecting traffic is only part of the story.

 

If there aren't as many people who need to travel between Jakarta and KL, I'm not sure how this is a loss for MH.

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Chris - I dont know the figures for O&D vs connecting traffic between SIN and CGK. I always assumed that the wealthy Indonesians loved going to Singapore to connect elsewhere (on top of those going to Singapore for business/leisure). Do you know that for a fact?

Even if there werent as many travelling to KUL as O&D, I felt that MH could have positioned itself a bit better as an airline connecting Indonesia to the rest of the world.

 

 

 

 

Which airline doesn't want to serve as many feasible destinations as possible?

 

Well, ask yourself why. If the domestic market were large and high-yield enough it wouldn't need to be subsidised. When was the last time you paid hundreds of dollars on a domestic ticket in Malaysia?

 

Not sure I understand your argument. SQ maintains F to CGK because of the number of wealthy business travellers who commute to and from SIN.

 

There's just a lot more O&D traffic between Singapore and Jakarta (enough for SQ to sustain 8 daily widebody flights), and connecting traffic is only part of the story.

 

If there aren't as many people who need to travel between Jakarta and KL, I'm not sure how this is a loss for MH.

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When was the last time you paid hundreds of dollars on a domestic ticket in Malaysia?

I do. And I believe very much the norm for us over here on Borneo island when we need to travel across the pond :)

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Which airline doesn't want to serve as many feasible destinations as possible?

 

Well, ask yourself why. If the domestic market were large and high-yield enough it wouldn't need to be subsidised. When was the last time you paid hundreds of dollars on a domestic ticket in Malaysia?

 

Not sure I understand your argument. SQ maintains F to CGK because of the number of wealthy business travellers who commute to and from SIN.

 

There's just a lot more O&D traffic between Singapore and Jakarta (enough for SQ to sustain 8 daily widebody flights), and connecting traffic is only part of the story.

 

If there aren't as many people who need to travel between Jakarta and KL, I'm not sure how this is a loss for MH.

Before btp, mh routes and network planning was defying what business school would teach. For reasons, mh has been bleeding cash for years. When mh started kul-dxb-ewr, it was bleeding rm18m per quarter from the beginning due to load limitations, and this route never make a single cent.

 

Before ak as we know now, mh kul-bki ticket could be more expensive than kul-bkk. Mh began to crumble when domestic routes was liberalized. If you believe mh domestic routes was subsidized by international routes, you should also believe Harry Potter is a genuine person.

 

There is no doubt, there is a large o&d traffic between sin and cgk. But number of ex-cgk pax transit thru sin is substantial also.

Edited by KK Lee

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Does anyone see this as another AF-KL or BA-IB to create a megahub ala AMS-CDG or LON-MAD?

 

Despite the mergers, all 4 airlines above retain their identity as flag carriers.

This can only happen if the Malaysian govt. sees it as a strictly commercial operation. But under Tun M, this is unlikely as he has already "interfered" even before MAB is sold!

 

MH and SQ combined is good for economies of scale - that will be the main benefit. They will have greater purchasing power on the supply chain. MRO for the group will be lower cost if based in Malaysia. Cargo will be best focussed at the SIN hub.

There is no doubt, there is a large o&d traffic between sin and cgk. But number of ex-cgk pax transit thru sin is substantial also.

Some of my Indonesian friends/relatives told me that a lot of Indonesians think that SQ is their national airline as they have great reservations about Indonesian airlines' safety.

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Does the Singapore Airlines and Malaysia Airlines partnership clear the runway for a future merger?

 

Malaysia’s struggling flagship carrier has unexpectedly agreed to explore a partnership with its fierce Singaporean competitor

While there has been resistance against a future merger on grounds of national pride, some analysts say such an alliance makes good business sense

 

https://www.scmp.com/week-asia/economics/article/3016531/does-singapore-airlines-and-malaysia-airlines-partnership-clear

 

Does anyone see this as another AF-KL or BA-IB to create a megahub ala AMS-CDG or LON-MAD?

 

Despite the mergers, all 4 airlines above retain their identity as flag carriers.

 

Well...well.. I think I had said about this half a decade ago

 

http://www.malaysianwings.com/forum/index.php?showtopic=19727&p=339542

Edited by J. Suri

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Chris - I dont know the figures for O&D vs connecting traffic between SIN and CGK. I always assumed that the wealthy Indonesians loved going to Singapore to connect elsewhere (on top of those going to Singapore for business/leisure). Do you know that for a fact?

Even if there werent as many travelling to KUL as O&D, I felt that MH could have positioned itself a bit better as an airline connecting Indonesia to the rest of the world.

Some wealthy Indonesians do enjoy being loyal to SQ, but others recognise that they have choices. Regardless, we're talking about a subset of what isn't exactly a huge market to begin with. As you say, it's the middle class might that's booming, but I don't think many of them fly F and J abroad at any considerable frequency :)

 

And I'm not sure what you'd want MH to do just to steal the Indonesian market share. Open new long-haul routes to cater to the conneting Indonesians? Deploy A380s to CGK to compete with SQ?

 

I do. And I believe very much the norm for us over here on Borneo island when we need to travel across the pond :)

Look beyond the confines of this country and you'll find that the ringgit you're paying really is peanuts in comparison to the dollars you'd pay for domestic travel elsewhere. And more often than not you're paying more for less in many parts of the world.

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Look beyond the confines of this country and you'll find that the ringgit you're paying really is peanuts in comparison to the dollars you'd pay for domestic travel elsewhere. And more often than not you're paying more for less in many parts of the world.

Should also compare gross and disposable income.

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Should also compare gross and disposable income.

I agree. Why don't you compare the gross and disposable income of our neighbors (e.g. TH/VN/ID/PH) and do a few trunk routes and compare their prices against Malaysia's for similar-ish distance.

 

Let me know if you find their flag carrier (apples to apples, so you can't compare Vietjet Air to MH), i.e. GA/TG/VN/PR to MH.

 

KUL-LGK, 282 miles for ~RM60 ($14.50 USD)

KUL-KCH, 603 miles for ~RM120 ($29 USD)

 

That should cover city pairs like BKK-HKT, CGK-DPS/SUB, MNL-CEB, SGN/HAN-DAD :)

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Look beyond the confines of this country and you'll find that the ringgit you're paying really is peanuts in comparison to the dollars you'd pay for domestic travel elsewhere. And more often than not you're paying more for less in many parts of the world.

You mentioned "a domestic ticket in Malaysia?" and mine was a response confined to that :)

If looking beyond, yes, a fair comment about payment in form of peanuts, particularly so when considering how our MYR (with which we pay for our domestic rides) is faring against the USD (for which most things aviation related is transacted I believe) :)

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I agree. Why don't you compare the gross and disposable income of our neighbors (e.g. TH/VN/ID/PH) and do a few trunk routes and compare their prices against Malaysia's for similar-ish distance.

 

Let me know if you find their flag carrier (apples to apples, so you can't compare Vietjet Air to MH), i.e. GA/TG/VN/PR to MH.

 

KUL-LGK, 282 miles for ~RM60 ($14.50 USD)

KUL-KCH, 603 miles for ~RM120 ($29 USD)

 

That should cover city pairs like BKK-HKT, CGK-DPS/SUB, MNL-CEB, SGN/HAN-DAD :)

 

Regular or promotion fare?

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Regular or promotion fare?

What's the difference? Airline ticket prices changes constantly. With MH, if you miss a sale/promo fare, it'll be back in 1-2 weeks. Plus minus a few ringgits here and there. But I am waiting for the comparison :)

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Can't discount any rumor. No smoke without fire. Though anyone can have discussions with anyone, doesn't particularly mean anything.

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A380 for British summer student peak period was already planned some time ago.

 

If the AMS rumour is true, that is good news - MAB should reintroduce its more popular European routes when possible.

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A380 for British summer student peak period was already planned some time ago.

Our Kim still scheduled on the 350 as of now

Unless your definition of "summer student peak period" fall outside mid Aug-early Sep window :)

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They will all say this but its inevitable that there be job losses for sure.

Perhaps they have plans to expand MAB without increasing the workforce?

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