MAS B772 Fleet Decommissioned on 27 January 2016

[Syukri 0]

If MAS going to order their new widebody from Boeing (+the 737), announcing it when Mr President is in town will be a good time...

[J. Suri 0]

787-10 is suitable to replace those 772 planes

[flee 5]

MAS ready to fly high again

 

SUBANG (July 1, 2013): It has been a busy, sometimes confusing, few years for Malaysia Airlines (MAS) with the national carrier transforming itself from a full-service premium carrier into a hybrid "five-star value carrier" and then back to a premium carrier as it tries to find the perfect business model to cope with the unpredictable cost of fuel, high operating expenditure and low yield from increased competition.

But MAS is ready to expand again following a route rationalisation exercise in January 2012 that saw it become a smaller airline.

And this time MAS is confident its business model will work as it ploughs ahead with its growth strategy by bringing in more aircraft to modernise and grow its fleet and focusing on fast-growing regions.

"The plan for MAS would be to continue growth and put more focus on regions which grow the strongest. And that may be true for the next four to five years, and then another region will grow in strength and then we will divert our resources and start growing there," its director of commercial Hugh Noel Dunleavy (pix) told SunBiz in an interview.

"We are also bringing in more aircraft into our fleet. We will be expanding our flight operations, by increasing the frequency of our existing flights and launching new destinations."

This year alone will see the airline take delivery of 24 new aircraft comprising 12 Boeing 737-800s, two Airbus A380s, four A330s and six ATR 72-600 turboprops, the latter for use by Firefly and MASwings.

For the first quarter of 2013 (Q1), the airline increased available seat capacity by 11% and flight frequencies by 9%.

Aware of the cyclical behaviour in the airline industry, Dunleavy believes now is a good time to explore new markets.

"If times are tough for everyone, now is the time to explore new markets. Because if I focuses only on my existing markets, all I am doing is protecting the markets that I currently have and we know that they are weak. If I go to new markets, it creates new traffic.

"Of course, going into new markets are risky. So, we at MAS will do the balancing act of (expanding) between new markets and existing markets on a schedule by schedule basis," he said.

Still, increasing yields would be one of MAS' biggest challenges. It saw yield decrease 5% to 24.2 sen per revenue passenger kilometres (RPK) in Q1 2013, despite passenger revenue rising 11% to RM2.47 billion.

"When we are trying to get more revenue for a flight, it is not that we change the fares. We actually keep the exact same fares in the market all the time, but we change how many seats we sell at the low-end versus the high-end. If it is a peak period, you don't want to sell too many discounted fares on those flights. (Then) you get a better yield," said Dunleavy, adding that the airline will have multiple fare products available on any given flight.

Dunleavy also notes that the Malaysian airline market is evolving quickly.

"There is a lot of competition in the market, not just from Malaysian airlines but international airlines that operate into Malaysia. The Middle Eastern airlines, for example, fly 10 times a day (to Kuala Lumpur) using wide-body aircraft.

"From a tourism and development aspect, that is good for the country. It creates a lot of competition. And it (competition) is good for us as it keeps us on our toes. MAS will have to continue to evolve its business model to adapt and response to those situations," he added.

"And how much we have grown this year (17% increase in passenger traffic, 14% increase in revenue and a higher seat load factor of 76.6% in Q1 2013) shows you that we are adapting to these challenges," said Dunleavy.

The former executive vice-president of strategy and planning of Canada's WestJet Airlines, one of the world's most profitable airlines, said MAS' fleet of superjumbo Airbus A380 has also worked well for the airline, judging from the higher passenger traffic its flights have garnered.

"We are now replacing all of our older 737-400s with the next generation 737-800s. They are much more fuel efficient, they reflect the brand and image of Malaysia and MAS, and we support this with our marketing and branding campaigns as well as advertising.

"In addition, our entry into oneworld (airline grouping) has also allowed us to now expand our network to match a global network of over 840 cities in 160 countries. It has also allowed us to put a world-class product out there," he added.

On the entry of low-cost carriers (LCCs) such as AirAsia and Malindo Air into this formerly full service carrier-dominated market, Dunleavy said LCCs are here to stay.

"It is just a natural evolution of the aviation space. If it wasn't Malindo Air, it would have been someone else.

"(Long haul LCC) AirAsia X had also explored travel into many destinations in Europe and India and then pulled (the routes) back because the mix of traffic, the volume and the fares passengers were willing to pay, didn't allow them to make profits.

They were making economic decision. And that is the right thing to do.

"Similarly, if we don't make money on a route, we would withdraw it. We do it carefully because we are all part of brand Malaysia.

As the flag carrier of Malaysia, Dunleavy said there is a continuous issue of balancing requests from cities for MAS to fly there and the realities of what the actual market demand is.

"Ultimately if they (routes) are not profitable, we owe it to our shareholders to withdraw from those markets and redeploy our assets (aircraft and crew) somewhere else. Now the markets that we withdraw from will not be happy with us. But the challenge we face is that, "It is difficult to be unhappy with us if there is no one travelling from your city. These are expensive assets and when this market doesn't work, I really do need to move it to somewhere else"," explained Dunleavy.

"But we will do everything in our power to see whether we can make that route work. But if we tried everything and it still doesn't work, we owe it to our staff and our shareholders to move that assets to where it makes money. And what we have found is that when we move those assets to places where it works for us, we then expand into those services," he added.

However, Dunleavy stressed that MAS does not suspend its service to a destination quickly.

"Quite rightly, MAS not only looks at it from a pure commercial viewpoint, it also takes a second look and says, what does it look like from a brand Malaysia viewpoint? And is this an area where MAS will continue to invest in that market to see whether we can do some other things like working with Tourism Malaysia for that region or city to help promote extra growth in that market?

"We make sure we invest sufficiently in that market to give it every opportunity to succeed," said Dunleavy, as he believes that MAS plays a role as an agent for the Malaysian government in terms of introducing more international travellers into Malaysia for tourism and development and business reasons.

Dunleavy also said there are people in some quarters who think MAS prevents other carriers from flying into cities in Malaysia.

"No, we don't. We have no right to do so. We are not even asked if an airline wants to fly to a certain destination, let's say Miri. And if international airlines want to fly into those destinations, they have all the rights to do so. We are not asked or told. It is totally up to them.

"So, if they are not flying into these cities, it is because these airlines independently make a decision not to fly based on the demand they see in that market and what fares they can charge that are reasonable," he added.

Source: http://www.thesundaily.my/news/757055

[Syukri 0]

Mr Dunleavy, it would be nice if u can tell us something that we DON'T know...

[flee 5]

KUALA LUMPUR (July 5): Malaysia Airlines System Bhd (MAS) said today it will be holding a special press conference to announce its airline network expansion plans.

Malaysia Airlines group Chief Executive Officer, Ahmad Jauhari Yahya, will make the announcement at the press conference on July 8, said a statement from MAS this morning.

The national airline, which has been very active in its marketing and promotion activities recently, will be adding Dubai back to its network effective 5 August 2013.

 

"Two other destinations are also in the national carrier’s radar and will be announced on July 8,” MAS said in a brief statement.

 

The airline has been steadily growing its reach and capacity in the past year, it said.

Malaysia Airlines regional footprint has also been deepened with increased frequencies, daily and weekly, to key business and leisure cities around Asia, it added.

 

Malaysia Airlines network has also been expanded through its various code share agreements and its membership in the oneworld airline alliance since February 2013.

The airline posted an 11% growth in revenue to RM3.39 billion in the first quarter of this year, but recorded an after tax loss of RM278.8 million due to higher finance cost and forex loss.

 

Its share, which had been actively traded this week, was last traded flat at 31 sen per unit.

 

Source: The Edge

[Kee Hooi Yen 0]

Other two new destinations are Darwin & Kochi ?

[Radzi 2]

Other two new destinations are Darwin & Kochi ?

 

http://airlineroute.net/2013/07/03/mh-drwcok-w13/

 

 

Malaysia Airlines starting 01NOV13 resumes Kuala Lumpur – Darwin operation, offering 5 weekly flights on board Boeing 737-800 aircraft. Reservation for this route opened this week.

MH253 KUL2235 – 0510+1DRW 738 x24

MH252 DRW0600 – 0920KUL 738 x35

MAS last operated service to Darwin on scheduled basis in February 2002.

Also, the airline from 27OCT13 begins Kuala Lumpur – Kochi service, where Boeing 737-800 aircraft operates on daily basis. Reservation also opened this week.

MH118 KUL2225 – 0001+1COK 738 D

MH119 COK0050 – 0735KUL 738 D

[flee 5]

Even Sri Lanka has ordered A350s... Sigh...

Well I think they are still a long way behind MH - an order for some A350s does not make it leapfrog over MH.

 

I think that MH still has time to ponder over the aircraft that they want as their current order for A333s will only be completely delivered in the next two or three years. Any new order will probably see deliveries after 2017.

[DavidC 0]

sorry if I am a bit pessimistic, but I don't think the expansion plan is anything exciting. Can be an anti-climax thingy with announcement that they have add like XX number of routes with the code sharing arrangements.

[flee 5]

KUALA LUMPUR, July 8 (Bernama) -- Malaysia Airlines will introduce daily flights between Kuala Lumpur and Kochi, India, beginning Sept 1, 2013, says Group Chief Executive Officer Ahmad Jauhari Yahya.

He said the airline would also reinstate flights between Kuala Lumpur and Darwin, Australia, with five times weekly flights effective Nov 1, 2013.

MAS will operate both routes on the new and improved 160-seater B737-800.

It will also reintroduce daily flights to Dubai, effective August 5.

"Dubai will allow the connectivity to the Middle East and is a fast-growing market to Malaysia, which in fact is a very popular Muslim destination for travellers from the Middle East.

"Kochi and Darwin have always been a strong secondary market and we see those destinations a fit to our overall network," Ahmad Jauhari told a media conference here Monday.

He added that MAS has also been actively strengthening frequencies to various regional destinations including 26 times flights weekly between Kuala Lumpur and Phuket with the introduction of one new daily service.

It will also increase the flight frequency between Kuala Lumpur and Kathmandu to seven times weekly from five times.

Meanwhile, MAS Director of Commercial Hugh Noel Dunleavy said MAS was refurbishing its fleet, making the airline to have the youngest fleet in Southeast Asia by year-end.

[Johan Z 0]

 

Meanwhile, MAS Director of Commercial Hugh Noel Dunleavy said MAS was refurbishing its fleet, making the airline to have the youngest fleet in Southeast Asia by year-end.

 

Which aircraft was refurbished?

[GeO 0]

I also think MH will buy A350(-900) or less likely 77x. They only need one type long haul aircraft.

That would take longer time and costs more $$ to convert pilots that are rated on the "Triple Seven". Would be less time and budget consuming to for B777-200 to B77X conversion.

[Mushrif A 3]

Which aircraft was refurbished?

he means the fleet is being refreshed with new aircraft

[Mohd Azizul Ramli 2]

So is that the so called big expansion announcement to be announced on 8 July 2013? We've known all of the details in much much thorough detail for almost a month already.

 

Which aircraft was refurbished?

 

Poor choice of words there. The first sentence [MAS was refurbishing its fleet] does not correspond with the second one [making the airline to have the youngest fleet in Southeast Asia by year-end]. I think the journalist must have just stumbled upon the word 'refurbish' and tried to impress his/her readers by incorporating it in the article.

 

he means the fleet is being refreshed with new aircraft

 

Exactly.

[Kee Hooi Yen 0]

So is that the so called big expansion announcement to be announced on 8 July 2013? We've known all of the details in much much thorough detail for almost a month already.

 

Yeah... a big disappointment. Perhaps my expectations was too high

[Sharil Abdul Rahman 0]

Yeah... a big disappointment. Perhaps my expectations was too high

 

To be fair, the announcement is for the normal folks and media, unlike us who fine-tooth comb the internet for every info you can get before it is out officially.

[Johan Z 0]

It was on the media at least a week before the "official" MH statement, hardly needs a press conference. They could at least save money and just release it on their website to make it official, rather than having a full press conference.

 

So is that the so called big expansion announcement to be announced on 8 July 2013? We've known all of the details in much much thorough detail for almost a month already.

 

 

Poor choice of words there. The first sentence [MAS was refurbishing its fleet] does not correspond with the second one [making the airline to have the youngest fleet in Southeast Asia by year-end]. I think the journalist must have just stumbled upon the word 'refurbish' and tried to impress his/her readers by incorporating it in the article.

 

 

Exactly.

 

That was my thought. But he used past tense- was. They're still receiving new aircraft. I'm not sure who to be blamed, the journalist or himself.

[Mohd Azizul Ramli 2]

I just voted the poll attached to this thread. Following the ET Dreamliner fire in LHR an hour ago, I am in the full opinion that MH should order the A350 ASAP.

 

No to Dreamliner.

[alberttky 0]

Well, we don't know what kind of problems the A350 will have when it's put into service. We didn't know much on whether the 787 encountered any battery problems during testing.

[Waiping 12]

I just voted the poll attached to this thread. Following the ET Dreamliner fire in LHR an hour ago, I am in the full opinion that MH should order the A350 ASAP.

 

No to Dreamliner.

 

Ya bro same here as well.

[Mohd Suhaimi Fariz 2]

I just voted the poll attached to this thread. Following the ET Dreamliner fire in LHR an hour ago, I am in the full opinion that MH should order the A350 ASAP.

 

No to Dreamliner.

 

Just because 787 issues have been cropping up on the media because of the intense attention the press have over the plane doesn't mean it's a bad plane, just like how the A380 isn't a bad plane despite the wing crack issue.

[Syukri 0]

And the latest Dreamliner fire at LHR has nothing to do with the battery either...

[flee 5]

The B787 Dreamliner featured a lot of new, unproven technologies. It is to be expected that all involved in bringing this airliner into service will make errors. Whether these errors will become fatal in the future remains to be seen. Meanwhile, we just need to let the aircraft pile up operational hours to enable Boeing to get more data and evidence of the quality of their designs.

 

I would not pass judgement on it yet till we have more data.

[S V Choong 4]

Expect the A350 to have teething problems too. I Wouldn't jump into conclusion that the 787 is bad. Just give it some time.

[alberttky 0]

Malaysian Airline System Bhd. (MAS) may order at least 17 planes to replace its agingBoeing Co. (BA) 777-200s as the state-run carrier seeks fuel-efficient aircraft to pare costs, a person familiar with the matter said.

Malaysian Air is considering both Boeing and Airbus SAS jets for the order and will take a decision on the manufacturer and type of planes in the first quarter of 2014, said the person, who asked not to be identified as the information is private. The carrier aims to add the new planes starting 2017, the person said.

The company is upgrading its fleet after fuel costs and competition from discount carriers including Malaysia’s AirAsia Bhd. pushed it into two straight annual losses. Budget operators in Southeast Asia have ordered at least 1,000 new aircraft in the past five years as economic expansion across the region enables more people to start flying in countries such as the Philippines and Vietnam.

Malaysian Air Group Chief Executive Officer Ahmad Jauhari Yahya couldn’t be immediately reached for comment as he’s traveling overseas. Najmuddin Abdullah, the airline’s head of strategic communications, also didn’t respond to an e-mail and telephone calls.

The carrier, based in Subang Jaya, Malaysia, will take delivery of 24 new aircraft this year and another 25 over the next two years, Ahmad Jauhari said in a June 11 interview in Kuala Lumpur. The carrier ordered 15 Airbus and 35 Boeing planes in 2011.

The airline is retiring 30 aircraft from its fleet this year to cut costs. New planes typically consume less fuel than older aircraft. With the retirement of old planes and new aircraft coming, the average age of Malaysian Air’s fleet of 110 planes will be 5.4 years by end of this year, Ahmad Jauhari said then.

http://www.bloomberg.com/news/2013-11-14/malaysian-air-said-to-consider-order-for-17-jets-to-replace-777s.html