MAS Continues Route Rationalisation

[Seng Lim 0]

Latest Annoucement by MAS on today, more international routes being cut from Aug 1 to Oct 29....

 

KUALA LUMPUR, July 14 (Bernama) -- Malaysia Airlines (MAS) will cease its twice-weekly Kota Kinabalu-Shanghai-Kota Kinabalu Boeing 737-400 service and twice-weekly Twin Otter service between Tawau and Tarakan, Indonesia effective Aug 1, 2006.

 

This will be followed by the withdrawal of its thrice-weekly Airbus A330-300 Kuala Lumpur-Fukuoka return service effective Sept 1, 2006, the national airline said in a statement.

 

It will also withdraw its twice-weekly Airbus A330-300 direct service between Kuala Lumpur and Chengdu effective Oct 29, 2006.

 

However, MAS said it will honour all forward bookings ticketed to date for travel beyond the service withdrawal dates.

 

It will make alternative arrangements at its own cost for travellers who still wish to continue their travel plans as originally booked.

 

"Where customers opt for refunds, Malaysia Airlines will waive all refund administrative charges and reimburse the full costs of their tickets," it said.

 

Commenting on the ongoing rationalisation, MAS managing director/chief executive officer Idris Jala said: "Through this network rightsizing, in line with our business turnaround plan, we will improve our connectivity and frequency through KL International Airport."

 

"Currently, we operate only two daily waves of flight arrivals and departures through KLIA but after Aug 1, we will shift to four waves per day," he said.

 

"In addition, we will continue to harness on existing and future code share arrangements with partner airlines to ensure minimal impact on Malaysia's position as a top tourist destination," he said.

 

Through such partnerships, MAS will continue to promote connectivity between Malaysia and key international destinations as well as contribute towards the overall efforts by the various authorities to increase tourist arrivals.

 

Malaysia Airlines unveiled its business turnaround plan on Feb 27, 2006 aimed at achieving sustained profitability by going beyond expectations in five thrusts -- flying to win customers, mastering operational excellence, financing and aligning the business on profit and loss, unleashing talents and capabilities, and winning coalitions.

 

-- BERNAMA

 

[Keno Omar 0]

Fukuoka doesn't seem to be able to do well, it was fairly recently that the route was re-instated but now getting a cut yet again.

[S V Choong 4]

This could be due to the Twin Otter fleet being transferred across to FAX from MAS.

 

Having said that, for the years I have lived in Tawau, I have either heard that the Indonesian return home to Tarakan by boat, while Malaysian businessman occassionally travels there, but hardly heard anyone has the desire to go there. Heard many accounts from those who had been there that the officials at Tarakan is corrupted and demand a small "fee" if you want to go through immigration and especially if you looked Chinese.

 

Doesn't really surprised me that they shelved the Tawau-Tarakan route. For me the "Golden Economy Triangle" of that region is somewhat a failure from the beginning anyway. They did introduced the F-50 to Tarakan at one stage, but thats a bit overly ambitious.

 

I believe Bouraq still flies to Tawau with their small birds like the Tri-islander. Can anyone confirm?

Edited July 17, 2006 by S V Choong

[Radzi 2]

 

I believe Bouraq still flies to Tawau with their small birds like the Tri-islander. Can anyone confirm?

 

No, never see one in TWU. I think Bouraq is bust now; never see them flying even in Indonesia now.

 

[Seth K 3]

Bouraq ceased operation in July 2005......................................a year ago

[Mohd Firdaus Bolong 0]

Never had seen the Trislander of Bouraq since the Tawau old airport days.Didn't even know theyve gone bust.

[Seth K 3]

+Malaysia Airlines can now fly five times a week between Kuala Lumpur and Rome,

 

+ MAS to operate three all-cargo services per week from Kuala Lumpur to Rome or Milan.

 

+MAS and Air Italia with the right to enter into a code-sharing arrangement.

 

+The MoU also notes that Malaysia and Italy will hold bilateral talks next year to discuss a daily frequency for passenger services between Kuala Lumpur and Rome.

 

+The airlines of both countries were then not entitled to exercise fifth freedom rights on the intermediate and beyond points.

 

+The understanding reached also enables MAS to run daily flights next year

 

 

[HSLim 0]

+Malaysia Airlines can now fly five times a week between Kuala Lumpur and Rome,

 

+ MAS to operate three all-cargo services per week from Kuala Lumpur to Rome or Milan.

 

+MAS and Air Italia with the right to enter into a code-sharing arrangement.

 

+The MoU also notes that Malaysia and Italy will hold bilateral talks next year to discuss a daily frequency for passenger services between Kuala Lumpur and Rome.

 

+The airlines of both countries were then not entitled to exercise fifth freedom rights on the intermediate and beyond points.

 

+The understanding reached also enables MAS to run daily flights next year

 

What is the source of this piece of news?

 

So this means that MH is still not permitted to fly passengers into Milan?

[HSLim 0]

Latest Annoucement by MAS on today, more international routes being cut from Aug 1 to Oct 29....

 

KUALA LUMPUR, July 14 (Bernama) -- Malaysia Airlines (MAS) will cease its twice-weekly Kota Kinabalu-Shanghai-Kota Kinabalu Boeing 737-400 service and twice-weekly Twin Otter service between Tawau and Tarakan, Indonesia effective Aug 1, 2006.

 

This will be followed by the withdrawal of its thrice-weekly Airbus A330-300 Kuala Lumpur-Fukuoka return service effective Sept 1, 2006, the national airline said in a statement.

 

It will also withdraw its twice-weekly Airbus A330-300 direct service between Kuala Lumpur and Chengdu effective Oct 29, 2006.

 

-- BERNAMA

 

It seems to be a challenge for MH to keep BKI as a secondary regional hub. While some international links will be maintained due to BKI's location (to avoid a significant backtrack to KUL), they have to be justified by sufficient BKI originating/terminating traffic. I'd imagine that HKG, MNL, CEB, TPE, KHH and CAN see a reasonable amount of traffic (as long as AirAsia is restricted from operating out of BKI into those markets), but I wonder if NRT, KIX and ICN are really needed? Could a regional partnership with CZ, CX/KA or CI provide a more sustainable solution for BKI, offering more frequencies (albeit not nonstop) to China, Korea and Japan? Could these potential partners also help to offer more options out of KUL connecting through their respective hubs to secondary destinations in China, Korea and Japan?

[Seth K 3]

What is the source of this piece of news?

http://www.bernama.com/bernama/v3/news_lite.php?id=208836

 

Now Five KL-Rome MAS Flights Per Week

 

LONDON, July 18 (Benama) -- Malaysia Airlines can now fly five times a week between Kuala Lumpur and Rome, up from the three flights a week between the two cities.

 

The new arrangement comes into effect immediately following the signing of a Memorandum of Understanding (MoU) between the governments of Malaysia and Italy here Tuesday.

 

The MoU also enables MAS to operate three all-cargo services per week from Kuala Lumpur to Rome or Milan.

 

It also provides MAS and Air Italia with the right to enter into a code-sharing arrangement.

 

The MoU also notes that Malaysia and Italy will hold bilateral talks next year to discuss a daily frequency for passenger services between Kuala Lumpur and Rome. This proposed expansion to daily services will enable MAS to hub its operations via Rome to major cities in Europe.

 

Transport Minister Datuk Seri Chan Kong Choy signed the agreement on behalf of Malaysia while Italy was represented by its Transport Minister Alessandro Bianchi.

 

The signing ceremony, held at the Finmeccanica Outdoor Exhibition of the Farnborough International Airshow 2006 (FIAS 06) in Hampshire, outside London, was witnessed by Deputy Prime Minister Datuk Seri Najib Tun Razak.

 

The air services agreement between Malaysia and Italy was signed on March 23, 1995 in Kuala Lumpur, and replaced a similar agreement signed by both countries on Aug 29, 1968. MAS had commenced operations into Rome on March 27 1994.

 

Both countries signed a confidential Memorandum of Understanding (CMoU) on July 18, 1997 which, among others, provided the right for the designated airlines of either country to operate a maximum of three weekly services.

 

The airlines of both countries were then not entitled to exercise fifth freedom rights on the intermediate and beyond points.

 

Speaking to Malaysian journalists after the signing ceremony, Najib congratulated the Transport Ministry for having taken the initiative to land the additional flights in the effort to enable the growth of MAS' services.

 

He said Rome and Milan were two important destinations that had huge potential to bring good returns to MAS.

 

The understanding reached also enables MAS to run daily flights next year, he added.

 

On his discussions with the Secretary of State for Defence of the United Kingdom, Desmond Browne, earlier Tuesday, Najib said they exchanged views on the defence developments of both countries as well as developments in Iraq, Afghanistan and Lebanon.

 

He said they also discussed the future of the Five Power Defence Arrangement (FPDA), and Browne confirmed support for the FPDA which he regarded as being still relevant. The FPDA comprises Malaysia, the United Kingdom, New Zealand, Australia and Singapore.

 

-- BERNAMA

 

[Pieter C. 5]

It also provides MAS and Air Italia with the right to enter into a code-sharing arrangement.

 

Air Italia ???

 

Is this Air Italy, the charter airline, or Alitalia, the main one ???

 

Would have expected better 'research' from Bernama !!!

[Radzi 2]

Air Italia ???

 

Is this Air Italy, the charter airline, or Alitalia, the main one ???

 

Would have expected better 'research' from Bernama !!!

 

Journalist; just don't expect too much from them.

 

[Seth K 3]

I think in Rome Air Italia is the same as Alitalia

But the whole point is MH increase frequencies to Rome...................I never know Rome is also a popular destination for Asian rather than the Northern Europe

[Isaac 0]

but I wonder if NRT, KIX and ICN are really needed?

These flights are very full most of the time. However, i think the B787-8 is a more suitable aircraft for these cities.

 

[Pieter C. 5]

But the whole point is MH increase frequencies to Rome...................I never know Rome is also a popular destination for Asian rather than the Northern Europe

 

Isn't this due to the upcoming rumoured joining of Skyteam ?

 

AMS/CDG/FCO/MXP all Skyteam hubs

 

 

 

[S V Choong 4]

Seems like MAS is being a pussy cat now courting Skyteam membership huh!?

 

No, never see one in TWU. I think Bouraq is bust now; never see them flying even in Indonesia now.

 

Thanks captain. Wow, didn't know Bouraq went bust..... Does Pelita Air still exist? My father used to ship the pearls kept by the Japanese from Semporna to Pelita Air at old Tawau airport. Pelita Air uses their Hercules C-130 and deliver the pearls to Japan. Not sure where the C-130 originated from though. Should go home to Tawau and dig out these old photos to post it here!!!

 

[Keno Omar 0]

Could MAS really support a daily service to FCO considering an earlier relevation that most/all European destinations all made loss? Skyteam connections aside, MAS also need a significant proportion of O&D traffic with the right proportion of premium passengers to make these extra flights to Italy work. This arrangement is probably to the benefit of AZ to take advantage of MAS connections to Australia (recall it wasn't long ago that AZ had a service Down Under).

 

On the other hand, I'm still quite sceptical on the benefits that MAS can gain from AZ in their territory, I would have thought KLM ought to be adequate. Personally I sense that Italy seems a bit too "alien" for travelling Malaysian public for flight connections who are usually familiar with LHR, FRA and AMS (all of which are "English-friendly" airports).

Edited July 19, 2006 by Keno Omar

[Sandeep G 1]

AZ/MH cooperation can benefit MAS... connectivity to Australia will be good for MH as there is a large greek/italian community there! Malaysia/Italy trade is large and in general, an increase in italian tourists would greatly benefit Malaysia...

 

This is all of course considering the proper marketing has been done and MH is able to secure excellent flight timings...

 

with the switch from 2 waves (morning and evening) to 4 waves soon, I wonder what sort of schedule we'll be seeing for MAS...

 

May i suggest to MAS first, that Australia be given additional flights, i.e. Daily to ADL, Double daily to PER and three times daily to SYD! I think proper marketing of these flights and good scheduling will make MAS more attractive to the frequent traveller.. not to mention the somewhat more favourable perks revealed with the new Enrich programme.

[haansel 0]

i heard Malaysia Airlines is planing to have flights to Milan .Is It True?

[Pieter C. 5]

but I wonder if NRT, KIX and ICN are really needed?

 

AMS/CDG/FCO/MXP all Skyteam hubs

 

All major Skyteam hubs:

 

NRT - NW

KIX - NW

ICN - KE

AMS - KL

CDG - AF

FCO - AZ

MXP - AZ

 

Like Sandeep said: large Italian community; it would definitely benefit MH on their AU/NZ flights (like it does with all the Dutch travelling there)...

IMHO this all is 'preparing' for entry into Skyteam

 

[HSLim 0]

These flights are very full most of the time. However, i think the B787-8 is a more suitable aircraft for these cities.

 

NRT/KIX/ICN flights via BKI full with passengers going to/from KUL or going to/from BKI? If the passengers are mostly KUL-originating/bound, then the BKI stop is not worth having.

[HSLim 0]

Seth K, thanks for the link to the source.

 

The revised bilateral adds capacity but is still rather restrictive. There is no mention of passenger services into MXP (which TG already serves and SQ will shortly begin serving). This still doesn't look like a nod from AZ (and the Italian transport ministry) to really link up with MH at KUL. Maybe it is still in the works and a partnership might be announced a little later. By the way, what happened with the original FCO-KUL codeshare deal between AZ and MH? Meanwhile, I doubt that upping the frequency from 3x to 5x weekly without any co-operation with AZ would be a wise move.

 

In response to Keno's comments: I, too, believe that having KL as the primary European partner works best for MH. However, the AMS link will start to saturate if KL connecting services are used for Scandinavia, BeNeLux, secondary UK airports, Germany, secondary French airports, Switzerland and (following your suggestion in another thread) transatlantic. There will be a need for a second connector and MXP or FCO have the geographical advantage (over CDG) of being less out of the way for southern and central Europe, and thus should work fine for Italy, Spain, Portugal, Austria and the western part of the Balkans. In the longer term, if MH sets its course for SkyTeam, SVO might even be a possibility.

 

It does look like MH is still setting its sights on SkyTeam. The possibilities are there but MH needs to also maintain focus on rightsizing its capacity to match its true market and improving yield management to truly be an attractive candidate. In addition, more partnerships with SkyTeam-aligned Asia-Pacific airlines can only strengthen its case for alliance membership. That is also why I suggested exploring partnership possibilities with CZ and KE.

[kandiah k 0]

Good news for MH ! Another milestone achieved !!!

 

However, I think there has to be some profit in the KUL-FCO route because MH has been using the B744 for some time now on that route after an upgrade from the B772. I think not much hype has been made about that route because no one expects that route to perform, what more to a Malaysian. It makes more sense or would be considered "ideal" to connect or fly into other airports like Keno mentioned such as LHR or AMS.

 

Let us hope that the FCO route is profit making and that it will generate more profit and provide good connections for onward pax to Ozzy and vice versa. Also, we may see AZ making KUL a destination in SEAsia after strengthening its financial status. It surprises me how Idris Jala sees things; which is very unstereotyped. For example, he pointed out that the EZE route was profitable when almost everyone else thought otherwise. Interesting that they are making FCO an important route to focus on in Europe. Who knows what is in store for MH.

 

The former MAS MD, Aziz suggested today that MH start a LCC to compete with other LCC in the region.

 

I also agree that KLM and MAS should increase their cooperation on the code share agreement.

Edited July 20, 2006 by kandiah k

[Adrian M 0]

The former MAS MD, Aziz suggested today that MH start a LCC to compete with other LCC in the region.

 

I don't mind if they decide to ops Air Berlin Low Fare business model. If they decide to do AK LCC-like business model, I against it. High in price for late bookings, then slash away everything (meals, pillow, aerobridge) and next thing we know, the seats made out from unreclinable tuna can.

[Seth K 3]

The former MAS MD, Aziz suggested today that MH start a LCC to compete with other LCC in the region.

 

I also agree that KLM and MAS should increase their cooperation on the code share agreement.

 

No problem for the link HS

 

MH as a LCC..........it will make this country a 100% LCC.........no more spacious travel for them who can afford. May be he suggested to operate flights like LCC. Well, who cares what he say, he's a former, just like Mahathir, no one listen any more to a former

 

Thought MH and KL just upgrade their partnership weeks ago with flights from ASIA-EUROPE-USA.

 

I don't mind if they decide to ops Air Berlin Low Fare business model. If they decide to do AK LCC-like business model, I against it. High in price for late bookings, then slash away everything (meals, pillow, aerobridge) and next thing we know, the seats made out from unreclinable tuna can.

Agree wit you Adrian............no more bridge, meals, best services, lounge. After all, that's why people fly MH Dunno much bout Air Berlin, but from TR I read by Pieter, looks pretty impressive service. Yup, MH could learn one or two from Western No worry, MH will never be a LCC

Edited July 20, 2006 by Seth K