Discounted MAS fares stay

[Naim 6]

Great news! Bring back the Supersavers.

 

.ny

 

+++

 

The Star

Monday July 10, 2006

 

Discounted MAS fares stay

 

By WONG SAI WAN

 

KUALA LUMPUR: Domestic travellers, particularly the disabled and senior citizens, will continue to get discounted domestic fares on Malaysia Airlines.

 

The discounted domestic fares on the national carrier due to be discontinued from Aug 1 will go on following a Cabinet decision two weeks ago.

 

The Cabinet also ordered the national carrier to fly on three more domestic routes – Johor Baru-Kuching, Kuala Lumpur-Tawau and Kuala Lumpur-Sandakan as part of its new aviation policy.

 

This development is good news for travellers in general as it would mean an open competition between MAS and AirAsia, thus causing fare prices to drop, although the low-cost carrier is unhappy about the decision.

 

The Government reversed an earlier decision to impose a minimum floor price on MAS for its 22 domestic routes from that date as part of the rationalisation of the domestic routes to allow AirAsia to take over the bulk of the local flights.

 

Previously, under the Feb 27 agreement between the two airlines, MAS was not allowed to sell its tickets below certain prices and the national carrier even announced that it was withdrawing all its special discounted fares from Aug 1 including the popular supersavers as well as the disabled and senior citizen discounts.

 

If the decision had stayed, the disabled, senior citizens, members of the security forces and students would have to pay full fare to travel within the country if they chose to fly by MAS.

 

These special groups used to enjoy a 50% discount of the normal fare. The supersavers fare also gives out a similar discount but was only available during lean periods when air travel was low.

 

It is reliably learnt that these discounts will now be maintained with this latest decision.

 

In a statement issued yesterday, the national carrier said it had received a letter from the Transport Ministry informing it of the latest decision.

 

“The additional three routes are re-instated because all these routes have high international traffic and/or high business class passengers.

 

“Recently, it was reported in the media that Johor and Sarawak had appealed to the Federal Government to allow MAS to fly the JB-Kuching route. This would provide a genuine choice for customers to choose to fly either via MAS or AirAsia,” the airline said.

 

MAS managing director/CEO Idris Jala welcomed the latest move by the Government, as it would give MAS a greater flexibility in fixing its domestic prices.

 

However, the latest decision will not sit well with AirAsia, which sees the floor price as a means of keeping the competition fair between the two airlines.

 

Last Friday, AirAsia CEO Datuk Tony Fernandes said the floor price needed to be maintained as MAS received a RM1bil subsidy from the Government and the funding made it an unfair competition if MAS did not adhere to a minimum floor price.

 

In response to the budget airline’s claim, MAS executive director and chief financial officer Tengku Azmil Zahruddin said the national carrier did not get any subsidy from the Government.

 

“Let me make it very clear that under the new domestic aviation policy, MAS does not receive any subsidy or any other form of assistance from the Government for any part of the domestic business.

 

“Penerbangan Malaysia Bhd is paying compensation of RM650mil to MAS in line with the contractual terms of the domestic agreement under the Widespread Asset Unbundling Agreement. This is not a subsidy but a one-off contractual obligation. We are using the funds to restructure the business, as this has become necessary as a consequence of terminating the agreement.”

 

http://www.thestar.com.my/news/story.asp?f...0743&sec=nation

[Tamizi Hj Tamby 1]

Don't just bring back the disabled and senior citizen fare only....Bring back the students fare too!!!

[Sandeep G 1]

 

If the decision had stayed, the disabled, senior citizens, members of the security forces and students would have to pay full fare to travel within the country if they chose to fly by MAS.

 

These special groups used to enjoy a 50% discount of the normal fare. The supersavers fare also gives out a similar discount but was only available during lean periods when air travel was low.

 

 

Tamizi,

there's your answer..

 

IIRC, I think 50% discount for students was for Grads members only and also conditional that these grads members flew standby... which really isn't much incentive.. please do correct me if I'm wrong.

[Tamizi Hj Tamby 1]

Ahh...I see then.Thanks a lot,Sandeep.However,Grads card holder who had confirmed booking enjoys 25% discount only...I'd rather use the full fare and also Enrich.

 

 

Edited July 10, 2006 by Tamizi Hj Tamby

[Tony 1]

I can still fly MH domestically!

[Naim 6]

 

The Edge Daily

10/7/06

 

Supersavers return

 

Malaysia Airlines System Bhd (MAS) can now re-introduce its Supersaver fares as the government has removed the floor pricing imposed on MAS under the new domestic aviation policy. In addition, the government has also reinstated to MAS three key domestic routes — Johor Bahru (JB)-Kuching, Kuala Lumpur-Tawau and KL-Sandakan.

 

MAS said on July 9 that the Cabinet had recently decided to review the domestic aviation policy and it was informed of the revision through the Transport Ministry. The decision to allow MAS to decide the domestic fare takes effect on Aug 1 this year.

 

MAS managing director/chief executive officer Idris Jala described the review as “timely as we are taking back the profit and loss (P&L) of the domestic operations from Penerbangan Malaysia Bhd (PMB)”.

 

“The government does not pay any subsidy to MAS for the domestic business after Aug 1,” he added.

 

Under the new domestic aviation policy, Idris said MAS would have a free hand to restructure its domestic operations to make it profitable, as outlined in its Business Turnaround Plan (BTP) announced on Feb 27, 2006.

 

“We can now exercise full control over our customer value proposition, frequencies, fleet, capacity and pricing to best serve the needs of our passengers as well as improve our yields on this segment of our operations,” he added.

 

With the revision, MAS said it would be able to provide appropriate discounts to its passengers when it makes commercial sense to do so.

 

During lean periods each year when air travel is typically low, MAS said that it is important for the national carrier, like all other global airlines, to “have the opportunity to implement tactical and discounted prices to encourage more air travel, as it had done prior to being asked to discontinue its Supersaver fares”.

 

As for the JB-Kuching, KL-Tawau and KL-Sandakan routes, MAS said the three routes were reinstated as these routes have high international traffic and/or high business class passengers. This will increase its domestic routes to 22.

 

“This would provide a genuine choice for customers to choose to fly either via Malaysia Airlines or AirAsia,” MAS said.

It was recently reported that the Johor and Sarawak state governments had appealed to the Federal Government to allow MAS to fly the JB-Kuching route.

 

AirAsia Bhd’s chief executive officer Datuk Tony Fernandes had said on July 7 that the budget airline was willing to give up the JB-Kuching and Kota Kinabalu-Miri routes if MAS wanted them back.

 

Fernandes said if having AirAsia flying those routes was going to cause interlining problems, then MAS could have these routes back.

 

Meanwhile, in the same statement issued on Sunday, MAS executive director and chief financial officer Tengku Azmil Zahruddin Raja Abdul Aziz rebutted a statement by AirAsia that MAS received a RM1 billion subsidy from the government.

 

“Let me make it very clear that under the new domestic aviation policy, Malaysia Airlines does not receive any subsidy or any other form of assistance from the government for any part of the domestic business,” he said.

 

Tengku Azmil added that PMB was paying compensation of RM650 million to MAS in line with the contractual terms of the domestic agreement under the Widespread Asset Unbundling (WAU) Agreement.

 

“This is not a subsidy but a one-off contractual obligation. We are using the funds to restructure the business as this has become necessary as a consequence of terminating the (WAU) agreement,” he said.

 

http://www.theedgedaily.com/

[Tamizi Hj Tamby 1]

MH decision to re-introduce Supersavers? Hope that it's more efficient than before.

 

[Nick R. 0]

wow. Decision changes pretty fast these days.. <_>

[Andrew K 0]

Why Grads.....??? Whyyyy.... I;ve only used it ONCE, and i loved it. Its 50% off for both. (see below) Dont get why one wants to be on standby if you can get a confirmed seat. At the same price.

 

 

 

 

BENEFITS

 

Domestic Flight Discount

 

For domestic flights, tickets can only be purchased at Malaysia Airlines Ticketing Counter

 

50% off domestic economy airfare (Confirmed Seat)

 

* Reservations, ticketing and full payment must be made at least 7 days before departure (excluding departure date).

* GRADS members are allowed to make an advance booking through Malaysia Airlines reservations at 1 300 88 3000.

* Please provide GRADS card number upon reservation.

* Ticket(s) can be purchased by cash or credit card only.

* Cancellation & Refund procedures

a) A 25% cancellation fee applies for any cancellation on confirmed seat prior to departure.

Airfare will be refunded according to Malaysia Airlines procedure.

 

 

 

50% off domestic economy airfare (Standby Seat):

 

* Reservation is not permitted.

* Open dated ticket must be issued 7 days before departure and subject to load travel .

* Please be at the airport terminal early with GRADS card and ticket.

* GRADS member must register their name at the Airport Standby Check-In Counter. Seat will be allocated once available.

* If GRADS member cannot get on the flight of their choice, they have an option to be on standby for the next available flight or request for a refund

* Malaysia Airlines has the right to claim the additional 25% fare if the cardholder has made advance booking.

[Rozhan 0]

Great that MAS may reinstate supersavers Now can fly more often on MH. Anyway they shouldn't have even thought about removing discounts for senior citizens in the first place. These little perks mean so much for those who had helped develop the country in the past, and it is time we show our appreciation. Pensioners don't continue to earn as much as when they were in service. Even Employees Provident Fund give pathetic returns these days!

[Seth K 3]

MH so nice give discount to senior citizen adn grad. CO only give discount to senior on selected route and no discount for pax under 65 . Well, as long they profitable, don't care

 

Penerbangan Malaysia Bhd is paying compensation of RM650mil to MAS

Man, that's a real deal

[Radzi 2]

Good news for passangers, good news for MAS, not so good news for Air Asia as the planned monopoly doesn't materialize.

[Naim 6]

Good news for passangers, good news for MAS, not so good news for Air Asia as the planned monopoly doesn't materialize.

 

Yeah, Da Man did not look too pleased on TV just now.

 

 

 

===

 

And he has this to say:

 

July 10, 2006 18:44 PM

 

AirAsia Surprised Over Floor Price Removal Statement By MAS

 

KUALA LUMPUR, July 10 (Bernama) -- AirAsia Bhd is surprised over Malaysian Airline System Bhd's (MAS) statement that the floor price imposed on the national carrier has been removed.

 

AirAsia's chief executive officer, Datuk Tony Fernandes, said that "as far as we are aware, there is no change in any status. AirAsia has not been informed of any changes in the floor price."

 

MAS said Sunday the government has removed the floor price under the new domestic aviation policy following a decision by the Cabinet recently.

 

Besides this, the government has given MAS the opportunity to fly to three additional routes (Johor Baharu-Kuching, Kuala Lumpur-Tawau and Kuala Lumpur-Sandakan).

 

"We are aware MAS made a representation to the Cabinet two weeks ago. Of course, the Cabinet has to hear two sides of the story," Fernandes told a press conference here Monday.

 

He said AirAsia has requested a meeting with the Cabinet and believed it would take place next week.

 

He said AirAsia's stand was clear that the floor price was a key fundamental in the whole domestic route rationalisation because there was no level playing field right now.

 

"There are many things that we think need to level out. If they are levelled out we have absolutely no issue on the floor price," he said.

 

Giving an example, Fernandes said MAS would get potentially up to RM1 billion to restructure its operations which has nothing to do with domestic rationalisation "because MAS is virtually keeping its domestic routes intact."

 

"The restructuring across the whole airline is being paid for by the government... to be given that kind of cash where AirAsia does not get that cash... it is not fair... there is no... some protection for AirAsia," he said.

 

Fernandes also claimed the distribution of route rights was unequal.

 

"AirAsia does not get the right to operate to Singapore from KL, from Penang, from Sabah and Sarawak. We have got no right to fly to Vietnam. We can't get rights because foreign workers can only go by MAS." he said.

 

On interlining with MAS, Fernandes said if MAS didn't want to work with AirAsia, "that is fine and no problem with AirAsia."

 

"We have made a representation to the government to say they can take back those five routes... we will not be involved in interlining," he said.

 

Fernandes said AirAsia was willing to let go that routes and that would not affect its bottomline.

 

"By all means, take it back. If it is so critical to your (MAS) business, take it back," he said, referring to reports the national carrier would fly to three more domestic routes.

 

According to him, MAS never operated that routes until AirAsia operated them.

 

"In our view, we have credible solutions for interlining but we are tired of all these... press talk," he said.

 

Asked whether domestic rationalisation has failed, Fernandes said, "it has not failed... it has not even started. It is supposed to start August 1."

 

"If MAS has the will... interlining will have made KL the stronger hub. If you want to make things difficult, you can make things difficult," he added.

 

He noted that what AirAsia's proposals on interlining have been accepted by most airlines in the world.

 

"In fact two foreign airlines are now talking to us... Big airlines who believed that we can add a lot of values to their international networks. They didn't approach (earlier) us because they thought we are doing with MAS.

 

"But now they have seen we are not doing with MAS... they want to do with us. They are quite happy the way we are suggesting," he said.

 

Fernandes said if AirAsia and MAS were to fully cooperate on the routes from day one, "we can fly many people to KL and then they can take MAS around the world to wherever routes MAS have left."

 

"It is a waste. Hopefully, we can bring more traffic which MAS could have compete with Singapore Airlines in building more international destinations.

 

"Life is too short. If you want the system that we believed is outdated... then we work with someone else," he said.

 

Fernandes noted that discussions on the rationalisation were not something that were done overnight, they took hours and months and it was a decision that all parties agreed to, including MAS.

 

"It would be a fair and workable solution for all parties concerned with Malaysia ending up with two strong airlines in a competitive market place "so that we will not cannibalise each other."

 

-- BERNAMA

Edited July 10, 2006 by Naim

[Edwin P K 0]

Yes! This should be the way, open up the competition man!

[Guest Michael]

It is fantastic news I must say, I may join now as I live in Perth, and I can still join GRADS it is super duper.

The Star

Monday July 10, 2006

 

Discounted MAS fares stay

 

By WONG SAI WAN

 

KUALA LUMPUR: Domestic travellers, particularly the disabled and senior citizens, will continue to get discounted domestic fares on Malaysia Airlines.

 

The discounted domestic fares on the national carrier due to be discontinued from Aug 1 will go on following a Cabinet decision two weeks ago.

 

The Cabinet also ordered the national carrier to fly on three more domestic routes – Johor Baru-Kuching, Kuala Lumpur-Tawau and Kuala Lumpur-Sandakan as part of its new aviation policy.

 

This development is good news for travellers in general as it would mean an open competition between MAS and AirAsia, thus causing fare prices to drop, although the low-cost carrier is unhappy about the decision.

 

The Government reversed an earlier decision to impose a minimum floor price on MAS for its 22 domestic routes from that date as part of the rationalisation of the domestic routes to allow AirAsia to take over the bulk of the local flights.

 

Previously, under the Feb 27 agreement between the two airlines, MAS was not allowed to sell its tickets below certain prices and the national carrier even announced that it was withdrawing all its special discounted fares from Aug 1 including the popular supersavers as well as the disabled and senior citizen discounts.

 

If the decision had stayed, the disabled, senior citizens, members of the security forces and students would have to pay full fare to travel within the country if they chose to fly by MAS.

 

These special groups used to enjoy a 50% discount of the normal fare. The supersavers fare also gives out a similar discount but was only available during lean periods when air travel was low.

 

It is reliably learnt that these discounts will now be maintained with this latest decision.

 

In a statement issued yesterday, the national carrier said it had received a letter from the Transport Ministry informing it of the latest decision.

 

“The additional three routes are re-instated because all these routes have high international traffic and/or high business class passengers.

 

“Recently, it was reported in the media that Johor and Sarawak had appealed to the Federal Government to allow MAS to fly the JB-Kuching route. This would provide a genuine choice for customers to choose to fly either via MAS or AirAsia,†the airline said.

 

MAS managing director/CEO Idris Jala welcomed the latest move by the Government, as it would give MAS a greater flexibility in fixing its domestic prices.

 

However, the latest decision will not sit well with AirAsia, which sees the floor price as a means of keeping the competition fair between the two airlines.

 

Last Friday, AirAsia CEO Datuk Tony Fernandes said the floor price needed to be maintained as MAS received a RM1bil subsidy from the Government and the funding made it an unfair competition if MAS did not adhere to a minimum floor price.

 

In response to the budget airline’s claim, MAS executive director and chief financial officer Tengku Azmil Zahruddin said the national carrier did not get any subsidy from the Government.

 

“Let me make it very clear that under the new domestic aviation policy, MAS does not receive any subsidy or any other form of assistance from the Government for any part of the domestic business.

 

“Penerbangan Malaysia Bhd is paying compensation of RM650mil to MAS in line with the contractual terms of the domestic agreement under the Widespread Asset Unbundling Agreement. This is not a subsidy but a one-off contractual obligation. We are using the funds to restructure the business, as this has become necessary as a consequence of terminating the agreement.â€

 

http://www.thestar.com.my/news/story.asp?f...0743&sec=nation

 

[Naim 6]

One implication:

 

 

AIRASIA DOWNGRADED TO 'SELL'; TARGET PRICE 1.25 RGT - OSK

 

Updated : 10-07-2006

Media : AFX

Story By : Ishun Ahmad

via www.biznewsdb.com

 

KUALA LUMPUR (XFN-ASIA) - OSK Securities said it is downgrading its recommendation on AirAsia Bhd to a "sell", based the negative earning implications of the government's decision to allow Malaysia Airlines (MAS) to compete in the low-cost arena. It did not say what its previous call had been.

 

"The reintroduction of competitive pricing and the introduction of competition to Tawau and Sandakan has a direct bearing on both earnings and sentiment of AirAsia," the brokerage said.

 

In placing a lower target price of 1.25 rgt for the stock, the brokerage cut its forecasts for AirAsia's net profit in the year to June 2007 by 12.8 pct and by 17.7 pct in the following year.

 

...

 

The brokerage said it expects AirAsia to struggle to raise its yields given the competition.

 

"The introduction of competition to KL-Tawau and KL-Sandakan are a blow to AirAsia as competition is introduced where it did not exist previously. As for the removal of the floor price, AirAsia will still have to compete on pricing with MAS particularly during the low season," OSK added.

 

http://www.biznewsdb.com/english/newspage/...ulan=07&kw=wwqq

[Seth K 3]

Is this mean AK in joepardy

[S V Choong 4]

The Cabinet also ordered the national carrier to fly on three more domestic routes – Johor Baru-Kuching, Kuala Lumpur-Tawau and Kuala Lumpur-Sandakan as part of its new aviation policy.

 

Good news for passengers like us, but bad news for TF. I am happy to hear that MAS is going to fly KUL-TWU and KUL-SDK, which makes it highly accessible for me to go back to my hometown from the capital.

[Andrew Yong 0]

Last night , Air Asia CEO MR Tony Fernandes was angry with this supersaver. Like Naim's TV interview at astro prima "THIS IS UNFARE COMPETITION SINCE 5 YEARS Ago, We lost hundred of million ringgit"said Mr Tony Fernandes. Yeah this is Unfare to Air Asia because MAS even not in good financial position they still have PMB back up them to organise this Supersaver!!!!

Edited July 11, 2006 by Andrew Yong

[Tony 1]

hehehe~

Tony in Malaysia is

Tony in Australia is

[Sing Yew 1]

hehehe~

Tony in Malaysia is

Tony in Australia is

 

Good one, Tony.

Sing Yew is too.

[I. Wong 0]

I don't see anything wrong to keep Supersaver for the benefits of everyone in Malaysia. Why is AK so angry about it?? I realise that even sometimes, AK fares are not always cheap as you could see in the promotion campaign. I have once found out the one way fare from KUL to SBW was more than RM350, which was more expensive than MAS. Given this kind of price level, I don't call it low-cost.

[Tony 1]

I don't see anything wrong to keep Supersaver for the benefits of everyone in Malaysia. Why is AK so angry about it?? I realise that even sometimes, AK fares are not always cheap as you could see in the promotion campaign. I have once found out the one way fare from KUL to SBW was more than RM350, which was more expensive than MAS. Given this kind of price level, I don't call it low-cost.

AK cuz less profit for them. As TF said, "unfair competition".

 

LCCs have no guarantee whatsoever to offer the cheapest fare in the market. Airlines, regardless of being legacy or low-cost carriers, have many levels of fares, with a variety of restrictions on each fare type. Hence you often find LCCs offering cheap fares, but at times their fares might be expensive too.

[Seth K 3]

AK cuz less profit for them. As TF said, "unfair competition".

 

LCCs have no guarantee whatsoever to offer the cheapest fare in the market. Airlines, regardless of being legacy or low-cost carriers, have many levels of fares, with a variety of restrictions on each fare type. Hence you often find LCCs offering cheap fares, but at times their fares might be expensive too.

Man this is so ironic, does TF thought he's the only one can make money around here? Tony words lately showed that he's a chicken, afraid to accept the fact that MH can beat them in no time. Well, MH has exclusive service, against the LCC/warehouse, if the price is affordable offer from both sides, what type of flying experience pax will choose? World class or cattle class? Can't believe that guy so afraid of competition <_>

Edited July 11, 2006 by Seth K

[Walter Sim 1]

I don't think he's being a chicken or what.

 

I mean, if the co-operative agreement says so and MH indeed breach the terms that means its a one to TF.

 

Well, from what i heard, havent got into the details yet they have agreed to sell in a diffrent market. If MH is to sell low fares it will probably ponder into AK's market, thus somehow obstructing with the agreement made.

 

Just my two cents worth, i have not read in depth onto the issue yet.