maskargo to lease A300F

[Izanee 0]

MASkargo in talks to lease A300 freighters

By Kang Siew Li

siewli@nstp.com.my

 

June 26 2006

 

MALAYSIA Airlines (MAS) air freight unit, Malaysia Airlines Cargo Sdn Bhd (MASkargo), is in talks with aircraft leasing companies to lease up to two Airbus A300 freighters for use on regional routes.

 

"We need that aircraft range to serve destinations in China, Vietnam, India, Japan and Taiwan.

 

"We have begun talks with several aircraft lessors, and now the question is whether we can secure the aircraft and for the right price," MAS senior general manager (cargo) Datuk Ong Jyh Jong told Business Times.

 

"However, we have to make a decision pretty soon if we are going to capitalise on the peak period for air cargo in the second half of this year," he added.

 

The two A300Fs are to be wet-leased to avoid the need to dedicate a pool of pilots and mechanics to this aircraft type. Under wet-lease, an aircraft is leased with cockpit and/or cabin crew.

 

Currently, the cargo unit operates a fleet of Boeing aircraft, consisting of two owned 747-400Fs and five leased 747-200Fs.

 

Leasing of the A300Fs will also help make up for the reduction in belly capacity following the recent cutbacks to MAS' passenger services.

 

The first phase of MAS' route rationalisation in March had resulted in MASkargo losing some RM66 million in revenue. Some of the destinations cut were Manchester, Vienna and Frankfurt where freight demand has been high.

 

To offset the loss of these international routes, MASkargo will be mounting more freighter flights to make sure it can provide some of the capacity lost on the passenger flights, Ong said.

 

"(For starters) we are planning to fly two times a week from Kuala Lumpur to London in August this year using our 747-400Fs. These will be increased to four flights a week," he said.

 

It will be MASkargo's third destination in Europe, after Amsterdam and Frankfurt.

 

MASkargo currently provides freighter services to Amsterdam, Pudong, Hangzhou, Penang, Dubai, Taipei, Melbourne, Tokyo, Osaka, Hong Kong, Sydney and Frankfurt.

 

To a question, Ong said he sees MASkargo's dependence on the belly space of MAS' passenger airplanes declining to less than 50 per cent from this year onwards.

 

Currently, it constitutes more than 50 per cent of MASkargo's total cargo uplift.

 

Meanwhile, MASkargo is eagerly awaiting parent MAS' disclosure as to how many 747-400 passenger aircraft the latter will free up for conversion to freighters. It expects a response by the end of this year.

 

It plans to use the additional 747-400s to serve long-haul routes such as Europe, Australia and China.

 

"MAS has indicated that they will free up some of its passenger aircraft, but we don't know the actual numbers.

 

MAS has seventeen 747-400 passenger aircraft in its fleet.

 

The cargo unit is confident of meeting its target of RM107 million operating profit for the year, thanks mainly to the two new 747-400Fs it received this year. Revenue is expected to grow 7-8 per cent.

 

"We will feel the full impact of the two 747-400Fs from July onwards, in time to take advantage of the forthcoming peak shipping season," Ong said.

 

At the same time, MASkargo is predicting growth of 5 to 8 per cent to 700,000 tonnes in the volume of cargo handled this year. Last year, it handled 644,000 tonnes.

 

"For the first five months this year, we saw growth close to 3 per cent in the volume of cargo handled, and this is not the peak yet. In fact, we are expanding our warehouse capacity at KL International Airport in Sepang to accommodate some of this growth," said Ong.

[Raj 0]

That's Really Good News for Maskargo..

Looks like they are doing really well..

A300F in MasKargo colours is sure gonna looks nice..

Izanee thanks for the Article

 

[S V Choong 4]

Meanwhile, MASkargo is eagerly awaiting parent MAS' disclosure as to how many 747-400 passenger aircraft the latter will free up for conversion to freighters. It expects a response by the end of this year.

 

If I am not wrong, there's another place for pax to cargo conversion, I think it is somewhere in the middle-east. It will convert the craft to B747-400BDSF (instead of BCF). Lets hope it is not Israel, otherwise MAS will not be heading there. Alternatively MAS may want to seek help from Boeing to get them converted at Subang?

[KK Lee 5]

 

Mas Kargo and AK have proved an airline operating without political agenda can be profitable and successful.

 

[Tze Shan 0]

i though they will be hiring airbus super transporter <_>

[S V Choong 4]

If MAS leased in the A300-600ST Beluga, then it means Airbus is out of business

 

The Belugas are for transportation of the A320 series, A330 and A340's fuselage from different locations around Europe to final assembly at Toulouse, France.

[Min Chun 0]

"(For starters) we are planning to fly two times a week from Kuala Lumpur to London in August this year using our 747-400Fs. These will be increased to four flights a week," he said.

 

It will be MASkargo's third destination in Europe, after Amsterdam and Frankfurt.

 

MASkargo currently provides freighter services to Amsterdam, Pudong, Hangzhou, Penang, Dubai, Taipei, Melbourne, Tokyo, Osaka, Hong Kong, Sydney and Frankfurt.

 

What a great news! Cargo flights will be increased!

What does MASKARGO send to Penang these days?

 

 

Meanwhile, MASkargo is eagerly awaiting parent MAS' disclosure as to how many 747-400 passenger aircraft the latter will free up for conversion to freighters. It expects a response by the end of this year.

 

It plans to use the additional 747-400s to serve long-haul routes such as Europe, Australia and China.

 

"MAS has indicated that they will free up some of its passenger aircraft, but we don't know the actual numbers.

 

MAS has seventeen 747-400 passenger aircraft in its fleet.

Clearing up some pax 747 for MasKargo use?

[Tamizi Hj Tamby 1]

Wow....Glad to hear that news.Hope that it will be a reality then

[Raj 0]

Hey Guys just want to ask a Question..

 

If Mas does happen to convert say 2 747 pax into Cargo Aircraft..All the Seats are going to be Taken out rite?? What Will they do with these Seats??

 

If Mas were smart they would use these seats taken out and put them in the A333's since hte seats on the 747 all have PTV and it would save mH alot of Money on this and paasengers would be alot happier..Can this actually be done??

 

 

 

[Tamizi Hj Tamby 1]

You're right,Raj.Wonder what they will do with the converted 747 seats.If MH decided to put them in their A333,that's a very wise decision.

[Sandeep G 1]

If I am not wrong, there's another place for pax to cargo conversion, I think it is somewhere in the middle-east. It will convert the craft to B747-400BDSF (instead of BCF). Lets hope it is not Israel, otherwise MAS will not be heading there. Alternatively MAS may want to seek help from Boeing to get them converted at Subang?

 

 

SV, how you been, bro? Anyway, I've been saying it for agggeeesss! MAS needs to invest in new capabilities to strengthen its position in the region... Investing in the technology to convert B744 pax into B744 freighters is one area they could really blossom!!! Seriously! Engineering services could be a gold-mine for the airline.. open up your eyes MAS! I kknow it would be an expensive exercise (which could not help the financial cash-flow problems in the short run) but in the long term! ehy.. i'm sure there is enough talent to pull this stunt off! and what an amazing stunt it would be! I want to be reading books written by academics and business analysts in the future about the "successful" and "independant" turnaround of MAS, rather than its demise at the risk of sounding cheesy: YOU CAN DO IT MAS!

[S V Choong 4]

If Mas does happen to convert say 2 747 pax into Cargo Aircraft..All the Seats are going to be Taken out rite?? What Will they do with these Seats??

 

Now, this is typical isn't it? Get the aircraft fully converted and now they don't need it!!!! Anyway, even if the A330-300s gobbles up the seats from the 747s, which is a good idea, they will still need to find home for the F seats which is unlikely to go to the A330 nor the 777s.

 

Hey Sandeep bro, it is freezing here in AKL... hope it is not that bad at PER. I agree with you, now that the 747-400 conversion has a strong market, MAS may as well acquire the skills from Boeing. IIRC, MAS is already fully capable of converting the 737 series from pax to cargo after the technology transfer from Boeing 1 or 2 years ago. Not sure if they have won any customers though.

 

[Seth K 3]

Hey Guys just want to ask a Question..

 

If Mas does happen to convert say 2 747 pax into Cargo Aircraft..All the Seats are going to be Taken out rite?? What Will they do with these Seats??

 

If Mas were smart they would use these seats taken out and put them in the A333's since hte seats on the 747 all have PTV and it would save mH alot of Money on this and paasengers would be alot happier..Can this actually be done??

Good question! Never thought about this. May be the engineer will get headache with the wiring they have to do . But, I hope they done this to the 333 or even upgraded it to AVOD

 

ILFC does have A300, may be MAS can lease from there!

Edited June 29, 2006 by Seth K

[Raj 0]

Min Chun, If i'm not Mistaken 742's Fly to Penang..

 

SV, Can't Mas Sell the F Class Seats..??But mayb the Question is who will buy them..

 

Ques: What do other Airlines like CX and Jal do with the Aircraft seats when they Converted their Pax 747 to Cargo planes??

[Seth K 3]

Min Chun, If i'm not Mistaken 742's Fly to Penang..

I saw Mas Cargo B742 at PEN

Actually, upon entering the terminal, I saw this gigantic 742 facing directly to me. I can make a clear shot but when the taxi past tru, I took a long time to take my camera from the bag, so I miss the whole thing

Edited June 29, 2006 by Seth K

[Sandeep G 1]

I saw Mas Cargo B742 at PEN

Actually, upon entering the terminal, I saw this gigantic 742 facing directly to me. I can make a clear shot but when the taxi past tru, I took a long time to take my camera from the bag, so I miss the whole thing

 

 

errr.. MH742Fs are very common in PEN.. they (MASKargo) do have a large cargo facility at Bayan Lepas to cater for the high volume of cargo exports from nearby electronic and semiconductor manufacturers (including Intel... doo Doo doo Doo)

 

In fact, PEN is quite an important cargo destination altogether Plenty of cargo airlines there what! Ask Teoh Z Yao and other resident PEN spotters

 

SV: hehehe PER was cold lah, but now in sunny KUL! its nice and warm here! who (apart from PosLaju and PosMalaysia) want 737Fs?? the market is soooo small! 744 conversion is destined to make money, as plenty of carriers will be likely expanding cargo operations (higher yields and you don't have to listen to whiney passengers about seat-pitch and AVOD malfunctions) in the future and changing older 744 pax versions for 748 or A380.. so why not change those old workhorse 744s into freighters!!

Edited June 30, 2006 by Sandeep G

[HSLim 0]

If I am not wrong, there's another place for pax to cargo conversion, I think it is somewhere in the middle-east. It will convert the craft to B747-400BDSF (instead of BCF). Lets hope it is not Israel, otherwise MAS will not be heading there. Alternatively MAS may want to seek help from Boeing to get them converted at Subang?

 

How is the BDSF structurally different from the BCF?

 

Looks like CX and JL have had 747-400 passenger-to-freighter conversions performed at Xiamen (TAECO?). Made (or actually Modified) in China!

[Sandeep G 1]

How is the BDSF structurally different from the BCF?

 

Looks like CX and JL have had 747-400 passenger-to-freighter conversions performed at Xiamen (TAECO?). Made (or actually Modified) in China!

TAECO whatttt.. very well run MRO entity!

 

But China (and India to a lesser extent) are fast catching up in the aviation industry.. Imagine if Airbus goes ahead with the A320 manufacturing/assembly plant in Tianjin.. although I think they better off not too because of concerns on quality!

[Seth K 3]

Sorry guys, thought PEN doesn't get 742 often First time to PEN thou

 

I heard two MH744 at SZB sitting the for a month idle?

[Andrew Yong 0]

Actually the MasKargo was one of the most successful sub-company from Malaysia Government. So is the good new for continue grow up in the air cargo market. Proud to be Malaysian !!!!

[Nick R. 0]

Mas Kargo and AK have proved an airline operating without political agenda can be profitable and successful.

 

I tought 'hidden' politics is lending a hand...I may be wrong..