AirAsia To Get 96 Non Trunk Routes Under Rationalisation Plan

[Naim 6]

I have a bad feeling when the govt gets involved. I was expecting MH to provide low-cost fares too to make Uncle Tony sweat a bit. Now no more Supersavers from MH, so budget travelers at the mercy of AK.

 

.ny

 

===

 

March 27, 2006 21:18 PM

 

AirAsia To Get 96 Non Trunk Routes Under Rationalisation Plan

 

KUALA LUMPUR, March 27 (Bernama) -- The government Monday announced the rationalisation of domestic flight routes whereby Malaysia Airlines (MAS) and AirAsia Bhd would operate 19 trunk routes, while AirAsia would also take on another 96 non-trunk routes.

 

The Prime Minister's Office said in a statement here today that the rationalisation plan would come into force soon, possibly by August 1 this year.

 

AirAsia would also operate social services routes such as rural air services in Sabah and Sarawak.

 

The government said it would not provide subsidies to MAS or AirAsia for operating the domestic routes, but AirAsia would receive financial support from the government for undertaking the rural air services.

 

Aimed at promoting healthy competition and focus in their respective segments, MAS will not be allowed to sell tickets below their full economic fares.

 

This means MAS would be offering premium services based on its price structure and related services costs, while AirAsia would offer non-premium, low priced fares.

 

Under the conditions, MAS and AirAsia would be given the flexibility to fix their flight fares, capacity and frequencies and type of aircraft used for their domestic flights.

 

The department said that the decision was made after taking into consideration the proposals sent in by both MAS and AirAsia.

 

He said the definition of the main route was based on two criteria comprising the international relationship and usage by the business community.

 

The KL International Airport, Kuching Airport and Kota Kinabalu Airport would become the hub for the 19 main routes which would be the flight from Kuala Lumpur to Pulau Pinang, Langkawi, Kota Kinabalu, Kuching, Johor Baharu, Miri, Sibu, Kuala Terengganu, Kota Baharu, Alor Setar, Kuantan, Labuan, Bintulu and also the Kuala Lumpur-Bintulu, Kuching-Kota Kinabalu and Kuching-Miri routes.

 

The others are Kuching-Sibu, Kota Kinabalu-Sandakan, Kota Kinabalu-Tawau and Kota Kinabalu-Labuan.

 

The rationalisation would come into full effect in the nearest possible time, once the restructuring of MAS' operations is implemented and AirAsia has built up its capacity to operate all of the domestic routes.

 

This would include providing efficient links and interlining services for the destinations where MAS has no domestic flight services, and according to the needs.

 

To carry out the rationalisation process, the government would offer compensation for the business unbundling agreement between MAS and Penerbangan Malaysia Bhd.

 

With this, the loss and profit account seen by MAS' domestic operations would be borne by MAS and no longer by the government, the statement said.

 

The department said that the government has been also informed that MAS and AirAsia were working together towards signing a deal which would see AirAsia maintaining the MAS flight and engineering crew in Malaysia.

 

This process and the strong cooperation shown by MAS and AirAsia would be able to raise the competitiveness of both the airline companies not only at the domestic level but also in the region and international front, the department said.

 

The government would also continue to ensure that the rationalisation process takes care of the interest and needs of the consumers.

 

-- BERNAMA

[Rozhan 0]

Not too bad it seems. At least for the peninsular, all airports will continue to be served by MH, except Ipoh. Glad I have a baggage tag to remember the happier days at IPH. I think some consideration were given for new terminals like at KBR, and soon AOR and TGG with their aerobridges. It would have been a big waste if these aerobridges become unused if only AK flies into these airports.

 

I hope MH will maintain the night tourist fares (YN), Special Excursion Fares (YEE30) and other discounted fares for senior citizens and students etc. The definition of not be allowed to sell tickets below their full economy fares is still vague in needs clarification.

 

[Andrew K 0]

So, MH is hoping to turn around more domestic routes after announcing that only 4 were profitable. Looks like most routes are in place. All the capital cities bar Ipoh are kept within arms reach. I wonder how much the price hike would be. Interesting to see how 'rightsizing' of staff and fleet would be like now.

[Y C LEONG 1]

finally... ahh...

 

i hope by implementing this plan into action.. MH will turn back into black soon.. if not.. i think MH better announce bankcrupt and start off again.. with proper management of course..

[kandiah k 0]

AK stated in the NST today that they are going to start flying the KUL-KUA route soon. Good to know that the new restructuring does benefit MH but also it will be a huge challenge to maintain these routes because they will have competition form AK as well as the yield, cost and load factors to tackle.

 

Strangely, MH does not use aerobridges in so many airports because these airports do not have them, so isn't that already heliping them reduce cost ?

 

[Delwin A 0]

Does this means that AK will acquire MH F50 and DHT to operate intra-Borneo routes and RAS?

[Rozhan 0]

NTV7 news just announced that MAS will offer VSS (voluntary saperation scheme) to 6,500 staff on the domestic side.

[Naim 6]

Malaysia Airlines to lay off 6,500

 

Kuala Lumpur (dpa) - Malaysia Airlines has announced it will lay off 6,500 workers and give up 96 domestic routes to budget airline AirAsia under a major restructuring plan.

 

A statement from the prime minister's office said the national carrier will also lose all government subsidies as of August 1. The announcement came as part of Malaysia Airlines' efforts to overcome huge losses, and shed its image as a government-subsidised, loss-making airline.

 

The carrier will now retain 19 domestic routes to share with AirAsia, Southeast Asia's first low-cost carrier, including flights to tourist destinations such as Penang, Langkawi, Kota Kinabalu, Kuching and state capitals.

 

Airline officials have said that many of the former Malaysia Airline staff will be absorbed by AirAsia.

 

Under the restructuring, "the government will not be giving any subsidy to Malaysia Airlines or AirAsia to operate the domestic sector," beginning August 1, the statement said.

 

Also, "the profit-and-loss account for domestic routes will be borne by Malaysia Airlines, not by the government," it said.

 

The government has been bearing an annual loss of about 300 million ringgit (81 million dollars) annually for the airline, which suffered 1.26 billion ringgit (340 million dollar) in losses from April to December last year.

 

http://www.bangkokpost.com/breaking_news/b...ws.php?id=87732

[Chan CS 0]

so how about the GRADS fare that provided for student? will that still be sold?

 

anyway... i don't really know what mean non trunk route and trunk route... can anyone define for me? thanks!

[Sanjay Thaker 0]

6,500 staff gone..Capt Radzi or TK...any info on the deals with MH's 737 pilots?

[Radzi 2]

6,500 staff gone..Capt Radzi or TK...any info on the deals with MH's 737 pilots?

Not yet, but will keep posted.

[KK Lee 5]

 

 

A Paul McCartney and John Lennon concert but who are Paul and John?

 

 

 

[Imran K. 0]

Not yet, but will keep posted.

 

I have a feeling the desert will soon be conquered by Malaysians.....

[M N Fairizuan 0]

Trunk - destination with more flights/higher frequencies per daily.

Non-Trunk - opposing the above statement.

 

Too bad, under new company, no medical benefits, crew meals, transportation n etc :rolleyes: But the good news free 6 or 8 f.o.c tickets

[Sing Yew 1]

Trunk - destination with more flights/higher frequencies per daily.

Non-Trunk - opposing the above statement.

 

Too bad, under new company, no medical benefits, crew meals, transportation n etc :rolleyes: But the good news free 6 or 8 f.o.c tickets <_ src="%7B___base_url___%7D/uploads/emoticons/default_rolleyes.gif" alt=":rolleyes:">

 

New company ??

 

[Imran K. 0]

Trunk - destination with more flights/higher frequencies per daily.

Non-Trunk - opposing the above statement.

 

Too bad, under new company, no medical benefits, crew meals, transportation n etc :rolleyes: But the good news free 6 or 8 f.o.c tickets <_ src="%7B___base_url___%7D/uploads/emoticons/default_rolleyes.gif" alt=":rolleyes:">

 

Wow...no medical benefits? How about insurance?

[Bing Chu 0]

Too bad, under new company, no medical benefits, crew meals, transportation n etc .....

Ouch ! But still bearable considering the option is VSS / MSS ?

[Eugene Koh 4]

From Justplanes news...

Malaysia Airlines

Malaysia Airlines announced it will discontinue service on 96 domestic routes and remove 19 aircraft from its fleet as a result. The airline plans on keeping service on 19 routes, 7 between Kuala Lumpur and peninsular cities, 6 between Kuala Lumpur and Sabah/Sarawak and 6 within Sabah and Sarawak

.

Any idea what these 19 aircrafts comprises of?

[M N Fairizuan 0]

New company (new company for us, MAS crew).

 

Insurance, not sure but will check with my friends at AirAsia If MAS can provides insurance for her staff, sure money-making AirAsia can provide the same or even better for her staff. Unlike MAS, they compensate each and every healthy crew RM 500 per month as productivity allowance, provided no MC (or less then 2 or 3 MCs per month).

 

Given all the facts and benefits enjoyed by many MAS crew, from company paid transportation to free crew meals/drinks onboard, free uniform to well covered medical benefits, guaranteed self privacy during long layover/nightstop... many MAS crew against the idea.

Edited April 4, 2006 by M N Fairizuan

[Andrew K 0]

So for a 744 trip, there are 20-odd rooms booked, 1 for each and every crew member? Dang. If only you could choose a partner to travel with to share rooms. Half the cost, and besides, it could be a lot of fun. To prevent tongues from wagging, conditions are they must be of the same sex.

[M N Fairizuan 0]

Accommodation is not a factor here as hotels always give the best rate for many airlines around the world for decades. In return, they get their (fair percentage of) guests from airline customers who bought the holiday package from the airline.

 

Further more many hotels around the world have special rate for airline crew not on duty to live, stay and play at their premises.

 

[Adrian M 0]

All this time i tot cabin crew gets the double beds which they have to share with another collegue and only flight crew are entitled to full single private bedroom.

 

Then I guess MAS rent the whole/few floor in Hyatt Regency KK just for the crews since BKI have quite amount of MAS flights that doing nightstop.

[Pieter C. 5]

Adrian,

 

To save money, they could go to 4- or even 3star hotels i.s.o. luxurious 5star hotel ?!

[Radzi 2]

Adrian,

 

To save money, they could go to 4- or even 3star hotels i.s.o. luxurious 5star hotel ?!

 

Sadly, they're already doing that especially for domestic crew. And the sad part is, they are not saving that much per head. Given the option, I'll pay the difference from my nightstop allowance, because from what I heard, the difference is in the region of a few measly ringgit, sometimes less than ten. Maybe TK can give the insight on the international stations.

 

[Andrew K 0]

So where do you guys stay now in KCH? No more Hilton?