Australia and Malaysia Need to Negotiate Expanded Bilateral Agreements

[Kris Kim 0]

Kee Hooi Yen, I'm not sure if you are familiar with the Trans Tasman services, but it is already tight as it is, SYD-AKL alone has CI, QF, NZ, JQ, VA, LA & EK, I'm not sure how well MH would do on the route considering QF, LA already represents OW in this market, and EK has also teamed up with QF. It's just not worth it for MH to operate these sectors, it would be better to code-share but then MH already has its own services to AKL. EK isn't doing that well before the partnership with QF, they practically flew half empty A380's across the Tasman.

[Kee Hooi Yen 0]

MH tried and tested the Indonesian stopover option before at CGK (3 weekly KUL-CGK-MEL). Short lived and a major failure.

 

http://www.malaysianwings.net/forum/index.php?showtopic=7463&page=2

Hence I am suggesting D7 instead of MH for such a leisure orientated market, and via DPS not CGK

It is not uncommon sometimes JQ and VA fares for SYD-DPS is higher than D7 or even MH's SYD-KUL.

 

As for SYD-AKL, it is not just pure trans Tasman flight. They are tag ons from KUL-SYD. It will enable MH to better utilised its aircraft especially it's current MH122/123 (having sitting in SYD for more than 6 hours). In addition, with the suggested 3rd daily flights, MH will have morning flights out of SYD without having aircraft overnight in SYD.

 

EK412/413 SYD-AKL vv is quite popular among my company for business trips to AKL (its timings is one of the important factor)

Edited August 3, 2013 by Kee Hooi Yen

[S V Choong 4]

Actually MH does have rights for KUL-BNE-AKL. During the early 90's MH did ply that route and made a technical stop at BNE for refuel. I believe the DC-10-30 did not have the necessary range to fly 11 hours continuously to AKL from KUL and probably demand for AKL-KUL was weak back then. SQ did fly direct to AKL from SIN with the assistance of the B742 and B743. CX did HKG-Port Moresby-AKL in the early days with the L-1011 Super Tristars before the go direct from HKG-AKL with the B742/ B743. Of course the political climate was pretty ill in the later part of the 90's and CX pulled out from Port Moresby altogether.

 

When MH received the B744, KUL-AKL was made direct, by passing BNE and KUL-BNE was route of its own. Then came the 2003/04 when MH suffered a bit of hiccup. KUL-BNE-AKL was reinstated for a year or so with the B744 though some flights did go direct from KUL-BNE (A332) and KUL-AKL (B744) separately on cetain days. Eventually KUL-BNE-AKL was dropped. I don't believe MH has fifth freedom rights from SYD-AKL, MEL-AKL. BI also hold rights between BNE-AKL (BWN-BNE-AKL) but went directly from BWN-AKL and BWN-BNE for a few years before they dropped both routes altogether.

 

Aerolineas Argentina hold rights between EZE-AKL-SYD, but was dropped altogether. I believe LAN still flies between SCO-AKL-SYD.

 

I guess my point is... the Trans-Tasman route seemed to be a tough route with strong competitors. Most pax from Asia and Europe would prefer to go direct from Asia to either Australia or NZ. To put a stop in between will mean a 1.5-2 hours of stop in either NZ or any Australian capitals, which can be a waste of time and tiring. It seems that only airlines that are based in Australia and NZ are able to survive long term. Emirates only captured a small but important chunk of it.

Edited August 3, 2013 by S V Choong

[Kee Hooi Yen 0]

Well the whole idea is by introducing the 3rd daily flight into SYD and tag on 2 of the daily flights to AKL :

• MH is still able to maintain the current two daily flights schedule time
• Provide morning flight out of SYD without having aircraft overnight in SYD
• Supplement AKL services by providing more flights options
• Opportunity to penetrate into SYD-AKL-SYD market
• Better aircraft utilisation

 

Trans-Tasman market is highly competitive, especially SYD-AKL. However, the airfare between these city pair is priced quite reasonably for a 3 hours flights (not dirt cheap). Hence I would presume the yield should be Ok for these flights

 

Just my 2 cents

[Josh T 0]

There is a lot of competition on the trans-Tasman routes. It is not worth MH's time and effort when they are already offering direct AKL-KUL services.

Anyway, looks like MH has increased flights to MEL with a 3rd daily flight twice a week and increasing BKI-PER to twice a week.

They really should bring the A380 to SYD now that the cap between Australia and Malaysia has been increased.

[Kar Yong Lim 0]

I've taken EK a couple of times for the Tran-Tasman route, and both flights are barely half full. I remember having had the entire 4 middle seats for myself. I recall choosing EK because they were the cheapest.

I had just returned from Perth and the flights on both legs were full! MH seems to be having healthy loads for the Australian routes.

[KK Lee 5]

Understand MH has been promoting discounted fare from Australia, hence high load especially in J-class. However, not too sure about the yield though.

[flee 5]

MH will report the Q2 results soon. I don't think the numbers will look that good due to the continued high oil prices and the depreciation of the RM against the US$. But the higher load factors should help limit the losses (or shore up profits).

[Josh T 0]

As long as the Q2 results are an improvement over the Q1 results and better than the comparative quarter from last year.

Understand MH has been promoting discounted fare from Australia, hence high load especially in J-class. However, not too sure about the yield though.

The discounted fares are only for CDG. The prices to KUL have not been too heavily discounted.

[flee 5]

AirAsia X emerges as Australia’s fourth largest foreign airline, overtaking rival Malaysia Airlines

 

AirAsia X will become Australia’s fourth largest foreign carrier by the end of 2013 as it allocates nearly all of its additional capacity for the remainder of the year to the Australian market. The expansion will see the medium/long-haul low-cost carrier increase its Australian operation from 35 weekly flights currently to 54 weekly frequencies in Dec-2013.

AirAsia X in the process will overtake rival Malaysia Airlines (MAS) as well as Thai Airways and Cathay Pacific in the Australia international seat capacity ranking. Only three foreign carriers – Emirates, Singapore Airlines (SIA) and Air New Zealand (ANZ) – will offer more seats in Australia in Dec-2013.

The expansion is made possible by a new air services agreement between Malaysia and Australia which increased total capacity to Australia’s four main cities by 40%. AirAsia X plans to continue to pursue expansion in Australia in 2014 and beyond, with more flights from Kuala Lumpur and new services from its planned second base at Bangkok.

Australia is AirAsia X’s first and biggest market

Australia has been an important and profitable market for AirAsia X since the carrier’s Nov-2007 launch. Kuala Lumpur-Gold Coast was AirAsia X’s very first route while Melbourne and Perth were both added only one year later, in Nov-2008. Sydney was finally launched in Apr-2012, ending a long battle with Malaysian authorities, which for years resisted allocating Sydney rights to the LCC.

AirAsia X announced on 29-Jul-2013 plans to launch Adelaide, its fifth destination in Australia. Adelaide will initially be served from 30-Oct-2013 with four weekly flights, increasing to five weekly flights in Dec-2013.

AirAsia X has been looking at Adelaide for some time but held off earlier this year in moving forward with its Adelaide plans in a bid to pressure Australia to agree to expanding the air services agreement with Malaysia. Malaysian carriers technically have unlimited access to Adelaide as the Australia-Malaysia bilateral only caps capacity to Australia’s four biggest airports – Brisbane, Melbourne Tullamarine, Perth and Sydney. But by holding off on service Adelaide Airport and the South Australia government were keen to attract, AirAsia X was able to effectively increase pressure on Australia to expand the seat cap limiting Malaysian carriers.

New air services agreement paves the way for AirAsia X expansion

The extended air services agreement was signed in Jul-2013 but AirAsia X was already banking on the deal happening as it previously started to sell additional Australia flights to Perth, Melbourne and Sydney that were contingent on a higher seat cap. AirAsia X will have two daily flights in each market by Dec-2013, with Melbourne going double daily in late September followed by Perth and Sydney in late November.

AirAsia X currently operates seven weekly flights to Perth, 11 to Sydney and 12 to Melbourne, according to Innovata data. The carrier is also increasing Gold Coast, which falls outside the air services agreement, from five weekly flights to daily from late Nov-2013.

The 54 weekly flights to five Australian destinations in Dec-2013 will give AirAsia X 20,538 one-way seats to Australia compared to only 13,195 seats currently, according to CAPA and Innovata data. This will give AirAsia X a 4.5% share of total international seat capacity in Australia. Only three foreign carriers – Emirates, SIA and ANZ – will have higher shares.

Full analysis:

http://centreforaviation.com/analysis/airasia-x-emerges-as-australias-fourth-largest-foreign-airline-overtaking-rival-malaysia-airlines-123794

 

[Mohd Azizul Ramli 2]

MH cancels the planned MEL increase. http://airlineroute.net/2013/08/16/mh-mel-w13update2/

[Chris Tan 0]

So I guess SYD won't get the dugong?

[Sandeep G 1]

Wasn't a glitch - now MH 3x daily into MEL.

http://airlineroute.net/2013/08/19/mh-mel-13update2/

 

Meanwhile, AirAsiaX upset some local Adelaidians with its advertising, which it has now graciously offered to change

http://au.news.yahoo.com/thewest/a/-/national/18564170/airline-ads-changed-after-sa-objects/

[Josh T 0]

Wow! 3 times a day from MH between MEL and KUL. I wonder if there will be any capacity increases planned for SYD...

[Johan Z 0]

It's time to put dugong on MEL.

[Craig 0]

It's time to put dugong on MEL.

If the capacity for 3 times daily 333/772 mix similar to 2 times daily 380/333 mix, I'd prefer the 3 times daily. The flight schedule for MH 146/147 looks great for connections and now more passengers can connect to MH 149 ex-KUL.

 

Now if only MH would upgrade their product to flat beds on the 333/772 that'd be perfect.

[Josh T 0]

Frequency is always much better. It would just be nice to fly in F all the way from SYD/MEL to LHR/CDG on the A380...

[Craig 0]

Looks like MH is going to increase SYD to 3 daily too beginning 03 Feb 2014 (04 Feb 2014 ex-SYD).

 

KUL-SYD

MH 141 KUL 0900 - 2015 SYD 333 D

MH 143 KUL 1925 - 0640+1 SYD 333/772 D

MH 123 KUL 2250 - 1005+1 SYD 333 D

 

SYD-KUL

MH 142 SYD 0850 - 1415 KUL 333/772 D

MH 122 SYD 1530 - 2055 KUL 333 D

MH 140 SYD 2155 - 0320+1 KUL 333 D

 

And Perth goes from 10 weekly to 11 weekly

KUL-PER

MH 125 KUL 0930 - 1500 SYD 333 D

MH 127 KUL 2000 - 0130 +1 SYD 333 D x123

 

PER-KUL

 

MH 124 PER 1630 - 2200 KUL 333 D

MH 126 PER 0230 - 0800 KUL 333 D x234

 

Flights are open for reservations

Edited August 23, 2013 by Craig

[Johan Z 0]

3rd daily SYD is not on the news yet.

[BC Tam 2]

3rd daily SYD is not on the news yet.

This is Malaysia Airlines - do not expect instant messaging

[Johan Z 0]

At least airlineroute will pick up first.

[Mohd Azizul Ramli 2]

Kudos to MH for the 3rd daily SYD flight. Now that's how you do it! (prompt and determined before D7 sweeps away all the available remaining seats on the cap).

[Kee Hooi Yen 0]

Awesome ! And the new timings are good.

[Mohd Azizul Ramli 2]

However, I think this 3rd daily flight is also an indication that the A380 will not be deployed to SYD for the time being.

[Izanee 0]

I think twice daily LHR and daily CDG was an excellent idea. More frequencies to Australia is probably the best way forward. Gives more options for OW members to connect to plus more flexibility for pax. Now... When will they order more A380s??!

Edited August 23, 2013 by Izanee