MAS to switch to e-ticketing in 2 years

[Seth K 3]

MAS to switch to e-ticketing in 2 years

By Ashwin Raman & Isabelle Francis

 

Malaysian Airline System Bhd (MAS) is revamping and switching its entire reservation system to e-ticketing within two years in line with the International Air Transport Association’s (IATA) mandate for all air travel to be ticketless in 2007.

 

MAS's managing director, Idris Jala, said the switch to full e-ticketing would be one of the national carrier's measures to offset high jet fuel cost.

 

He said the only way for airlines to mitigate the high fuel cost was to reduce cost in handling, processing and dealing at distribution channels as well as to make the switch to e-ticketing.

 

“It is very clear that the industry must simplify to reduce the cost of air travel. That’s why IATA insists, that by December 2007, all airlines must have e-ticketing,” he told reporters after a dialogue session with travel agents in Kelana Jaya on March 14.

 

IATA has forecast the global airline industry to make a loss of US$4 billion (RM14.86 billion) this year due to high fuel prices. It does not expect fuel prices to go down to 2004 levels.

 

IATA estimates the worldwide airline industry could save up to US$3 billion a year once e-ticketing is fully implemented.

 

Idris said MAS currently offerred e-ticketing for its domestic routes and the airline was revamping its 20-year old system to offer e-ticketing solutions for its international routes.

 

If MAS did not have the capabilities of e-ticketing by December 2007, Idris said: "We just cannot do interlining (with other airlines)", which is an integral part of the airline's strategy for recovery.

 

On another matter, he said MAS was not “in a hurry” to decide on whether to get the RM2 billion aid from the government, as part of the RM4 billion cash it intended to raise to strengthen its cashflow.

 

"We already secured RM1 billion (loan). With the cash we generate from operations, I just want to make sure the RM2 billion is there when we need it. It's not something we are desperately running to get.

 

"There is time to secure and talk to the government in a lot more detailed fashion so that we get the best deal going forward," he added.

 

Earlier this month, Khazanah Nasional Bhd managing director Datuk Azman Mokhtar said it was evaluating the RM2 billion request and a decision could be made known in the next three months.

 

On whether part of MAS's parent company Penerbangan Malaysia Bhd's proposed US$1 billion bonds would be used by the national carrier, Idris said: "We don't have any access to that fund."

 

On its domestic route rationalisation in collaboration with Air Asia Bhd, he said MAS was expected complete its route profitability analysis in the next two weeks.

 

“When we finish, we will know which are the routes that we cannot make money. For these routes, we would be asking AirAsia or the government (to see if they) would have different ways in dealing with them," Idris said.

 

Earlier speaking at the dialogue session on MAS's plans to dispose of its assets, Idris said: “I know it's a sensitive issue, especially on the MAS headquarters (in Jalan Sultan Ismail), but there’s no point to have the buildings when you lose your airline.”

 

Its commercial director Datuk Rashid Khan said MAS would revise its travel agent incentive scheme as early as next month, particularly on commission fees, to become more performance and yield-based rather than volume.

 

Currently, sales of tickets through travel agents make up 80% of total sales while internet booking accounted for less than 10%.

 

Also present at the event was Transport Minister Datuk Seri Chan Kong Choy.

 

The minister told reporters that the government had budgeted RM10 million to RM15 million this year to subsidise rural air services and would continue to do so despite the route rationalisation.

 

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Wah............in two years, this is bad. E-ticket is the easiest way to fly nowadays for unschedule frequent flyer. Well, not a bad thing actually since I book 2 hours before flight to KUL from PEN with MH, not a problem. E-ticket can make online booking easier and faster check in too

 

The minister told reporters that the government had budgeted RM10 million to RM15 million this year to subsidise rural air services and would continue to do so despite the route rationalisation.

Looks like Twin Otter and Fokker stay

[Azuddin 1]

2 years, why not 2 months. te benefit is no more messy red carbon paper ticket. and no more problem in loosing ticket, lose one just print another one

 

Azuddin

[Azman MN 1]

2 years is a long time. It is not like MAS is developing something totally new. So many other airlines have e-ticketing for a few years already. I wouldn't say that MAS can buy this system off-the-shelf, but surely this cannot take this long?

 

 

[Rozhan 0]

I love those paper tickets They have collectible value, so collect them while they are still around.

[M N Fairizuan 0]

Implementation of the new system can be done in a very short period. But dealing with human resources, staff training local and overseas, overhaul the entire systemwide, transaction/intergration process... another story. Finally, they get rid their outdated KOMMAS (and ABACUS).

[Ricky Tiong 0]

I agree with the comment why it takes 2 years and not 2 months. E-ticketing is certainly not something new. Having said that, it has proved itself with many airlines around the world.

 

Take NZ for example. It has never been easier to book and pay for a domestic flight as everything you can do online. In some ways I think it will also attract more potential passengers.

 

Believe it or not, there are some people at home clicking around on their internet everyday and if they happen to see a good deal they may very well consider it. I have known people who have taken a quick holiday just like that.

 

If I were MAS, I would at least get e-ticketing up and running for domestic flights as soon as possible.

[Azman MN 1]

Implementation of the new system can be done in a very short period. But dealing with human resources, staff training local and overseas, overhaul the entire systemwide, transaction/intergration process... another story. Finally, they get rid their outdated KOMMAS (and ABACUS).

 

 

Maybe this is the problem. When Swiss introduced e-ticketing, they closed down almost all their ticketing offices in Switzerland. Now if you want to buy a ticket, you have to use the internet. If no internet, then you have to call them. But calling them means that they will charge you for the service, i.e., for doing what you could have done yourself on the internet. This led to plenty of cost savings in terms of office rent, ticketing staff redundancies, paper, etc., . Given the politics at play... hmmm not surprised that takes an IATA deadline to finally force them to do it...

 

 

[Azuddin 1]

i have a Continental luggage tag with phrase says "Check in before you even pack", i say that E-ticket is a very convinient way to take your flight.

 

Azuddin

[Min Chun 0]

As Pieter said, there's a 'vending machine' selling tickets in oversea..Now, we need 2 mroe years to switch to e-ticketing..

[Seth K 3]

i have a Continental luggage tag with phrase says "Check in before you even pack", i say that E-ticket is a very convinient way to take your flight.

 

Azuddin

 

 

Is that the check in yesterday fly today promotion...............try it, never work

Heck how many minutes you spent just for check in, like 5 minutes? So, check in at the airport seems more secure than thru computer

[Azuddin 1]

Is that the check in yesterday fly today promotion...............try it, never work

Heck how many minutes you spent just for check in, like 5 minutes? So, check in at the airport seems more secure than thru computer

 

 

agree

 

let say you already check in but you don't even prepare your luggage yet while your flight is in 3 hours . it's a rush..

 

the bad thing i hate about lining up is once, i lined up at CX counter at LAX for 1 1/2 hour. this happen because Qantas using same check in counter with CX. "One World" that is. actually only a few QF counter were open.

 

Azuddin

Edited March 15, 2006 by Azuddin

[Rozhan 0]

Online ticketing requires credit cards, although AK also accepts Maybank2U money transfers. However I think the credit card penetration rate in Malaysia is still relatively low. Plus some people may not feel comfortable using credit cards for online transactions. I read in a business article recently that online bookings on MAS' website is still very much low as many people still prefer to buy tickets via MAS ticketing offices or their travel agents. The MAS ticketing office at KL Sentral can be very busy at certain times of the day. I had to wait for over 1 hour for my turn in one instance.

 

MAS has for many years already, provided e-ticketing (sort of) via Maybank ATMs called MASET. But not much is being done to inform, remind or persuade customers to use this service i.e. not much advertisements in the papers. But one still has to call up MAS Callcentre, which will then provide the booking number to make the transaction via ATM. At least by this way, MAS can save on paper ticket costs.

[T Azahan 1]

I love those paper tickets They have collectible value, so collect them while they are still around.

 

yaaa rozhan, i am digging my drawers to find old mh tickets...........

 

[M N Fairizuan 0]

Maybe this is the problem. When Swiss introduced e-ticketing, they closed down almost all their ticketing offices in Switzerland. Now if you want to buy a ticket, you have to use the internet. If no internet, then you have to call them. But calling them means that they will charge you for the service, i.e., for doing what you could have done yourself on the internet. This led to plenty of cost savings in terms of office rent, ticketing staff redundancies, paper, etc., . Given the politics at play... hmmm not surprised that takes an IATA deadline to finally force them to do it...

 

Given the "current" situation at play, our low internet connection per capita compared to other EU countries, Switzerland, North American countries, South Korea and etc making it more inconvenience for the traveling public. Plus, credit card fraud cases in Malaysia… well... I think you well aware of this issues.

[Y C LEONG 1]

i think e-tic is very convenient.. all you need is your booking reference number and a valid photo identity card while checking in and also your credit/debit card..

 

i have just book my flights with ryanair online last night to berlin in mid may.. just a few clicks.. and your own data entry.. voila..

 

i do agree a lot of people still have a very conservative thinking when it comes to using credit cards online.. but i suppose human always take the easier way out unless as you said.. queuing up for up to an hour to buy an air ticket in kl sentral..

 

BA is shedding 400 staffs to save on costs with online flight reservation.. and i truely agree with the idea of online check-in especially for business travellers who have tight travel schedule..

 

i think if MAS can implement the online reservation plan in a year time rather than two years.. it would be better and eventually generate more profit from the cost cut..

[Seth K 3]

If I were MAS, I would at least get e-ticketing up and running for domestic flights as soon as possible.

 

 

Idris said MAS currently offerred e-ticketing for its domestic routes

[Attan 0]

Dunno how e-ticketing actually works for multi-airline trips . A friend of mine had a big problem 2 days ago when her connection into LAX was delayed and she missed her LAX-SIN flight. All her tickets were e-tickets and although TG had a flight out of LAX the next day, she couldn't get on it because they insisted on physical tickets.

[Keith T 2]

Dunno how e-ticketing actually works for multi-airline trips . A friend of mine had a big problem 2 days ago when her connection into LAX was delayed and she missed her LAX-SIN flight. All her tickets were e-tickets and although TG had a flight out of LAX the next day, she couldn't get on it because they insisted on physical tickets.

 

That's odd I thought TG did e-tickets too? I think they meant they wanted a copy of her e-ticket receipt to determine what fare she's booked in and whether its possible for them to honour her tickets.

[Ken K. Kour 0]

This is the whole problem with MH isnt it? always lagging behind...

 

Example..

 

Lie Flat seats, came out with BA and SQ back in the 90s when MH were putting in the old F class seats (i think), and only now Mas is putting in the sleeper suites, and airlines like Emirates are coming up with even more revolutionary seats, and im sure SQ has something up their sleeve which we will see with the 773ER and 380. And now MH has refurbed half their fleet, and then talks of selling off 2/3s of the B747 fleet.. whats the point.. all seems a waste of time and money...

 

stupid management..

 

GO EK!! And AK Also! :lol:

[Seth K 3]

This is the whole problem with MH isnt it? always lagging behind...

 

Example..

 

Lie Flat seats, came out with BA and SQ back in the 90s when MH were putting in the old F class seats (i think), and only now Mas is putting in the sleeper suites, and airlines like Emirates are coming up with even more revolutionary seats, and im sure SQ has something up their sleeve which we will see with the 773ER and 380. And now MH has refurbed half their fleet, and then talks of selling off 2/3s of the B747 fleet.. whats the point.. all seems a waste of time and money...

 

stupid management..

 

GO EK!! And AK Also! :lol:

 

Can't say better than this Well said

[Attan 0]

That's odd I thought TG did e-tickets too? I think they meant they wanted a copy of her e-ticket receipt to determine what fare she's booked in and whether its possible for them to honour her tickets.

 

Yes, that's odd but she had all her vouchers with her and TG wouldn't accept her vouchers.

[Seth K 3]

Dunno how e-ticketing actually works for multi-airline trips . A friend of mine had a big problem 2 days ago when her connection into LAX was delayed and she missed her LAX-SIN flight. All her tickets were e-tickets and although TG had a flight out of LAX the next day, she couldn't get on it because they insisted on physical tickets.

 

 

Is it LAX-SIN with SQ or LAX-BKK-SIN with TG?

[Seth K 3]

MAS launches new e-ticketing system for M'sia-S'pore flights

 

Malaysian Airline System Bhd (MAS) now offers customers more flexibility in purchasing tickets for local travel or travel between Malaysia to Singapore with its new “Hassle Free, Easy to Book” e-ticketing system.

 

These tickets could be purchased through all Maybank ATMs in Malaysia or via MAS’s website at www.malaysiaairlines.com.

 

Customers can now make reservations by dialing MAS’ 24-hour call centre at 1300-88-3000 and proceed to make their payments at any Maybank ATM where a transaction slip will be issued.

 

The transaction slip and the customer’s photo identification card would then be required for check-in purposes.

 

Alternatively, customers can utilise MAS’ website and complete their transactions by using either Visa or MasterCard credit cards.

 

A printable confirmation page will be presented and an e-mail containing the itinerary receipt will be provided for customer retention and check-in at the airport.

 

My dad booked KUL-PEN-KUL with MH using Enrich Redemption and they asked him to issue it at their office in west and east coast of US which 3 hours flying time. So we don't have time for that, they desperately to do e-ticket!

[Attan 0]

Is it LAX-SIN with SQ or LAX-BKK-SIN with TG?

 

Seth, it was LAX-SIN on SQ originally but because the incoming connection was delayed, she tried LAX-BKK-SIN on TG. It was TG which insisted on a physical ticket if she wanted to convert from her SQ e-ticket.

[Seth K 3]

Board any MAS flight with an e-ticket by next year

 

KUALA LUMPUR: All Malaysia Airlines (MAS) flights will be completely ticketless by next year, including those booked through travel agents.

 

This follows the successful launch of the e-ticketing system for domestic and Malaysia-Singapore flights on Monday.

 

MAS assistant general manager for distribution Md Saat Abd Samad said there were no complaints from customers of the 2,250 e-tickets issued on the first day that brought in a revenue of RM500,000.

 

“This system is as convenient as booking tickets at our 39 ticketing offices, through our call centre or website.”

 

He said passengers only needed to bring their identity card and booking reference number to board an aircraft.

 

MAS expected to sell some 2.5 million e-tickets this year.

 

MAS said in a statement on Sunday that it was on schedule to meet International Air Transport Association's (IATA) requirement that all airlines fully implement the e-ticketing system by the end of next year.

 

Md Saat assured travel agents that MAS would implement IATA-compliant e-ticketing solutions for them next year.

 

He said MAS' ticketless system started in 1997 when purchases could be made through Maybank ATMs.

 

He said the current phase of e-ticketing took MAS 30 days to carry out.

 

Md Saat added that 1,250 employees were trained to use the system.

 

He said MAS was starting a direct debit system called FPX which would allow it to connect to many banks through a single channel.

 

“At the end of the day, the customers will be the biggest beneficiaries.

 

“They can now book online or through the call centre 24 hours a day, with flexible forms of payment.”

 

Convinient, easy and save.....should apply this to all network