MAS's Fares To Increase By 15-25 Pct Effective Aug 15

[Naim 6]

Not a particularly good piece of news.

 

.ny

 

+++

 

July 31, 2006 16:35 PM

 

MAS's Fares To Increase By 15-25 Pct Effective Aug 15

 

PETALING JAYA, July 31 (Bernama) -- Malaysia Airlines would raise its fares by 15 percent for its economy class and 25 percent for its business class effective Aug 15, due to higher fuel surcharge costs and the imposition of an administration cost.

 

Its managing director Idris Jala said MAS would increase the domestic fuel surcharge to RM20 from RM15 within Peninsular Malaysia and Sabah and Sarawak effective tomorrow.

 

Between Peninsular Malaysia and Sabah and Sarawak, the fuel surcharge would be raised to RM51 from RM36, he told a press conference here Monday.

 

He said an administration fees of RM14 would also be imposed as practised by budget carrier AirAsia.

 

MAS also aims to break even by the year-end following the implementation of its new business unveiled earlier this year, he said.

 

-- BERNAMA

[Mushrif A 3]

Not a particularly good piece of news.

 

.ny

 

+++

 

July 31, 2006 16:35 PM

 

MAS's Fares To Increase By 15-25 Pct Effective Aug 15

 

PETALING JAYA, July 31 (Bernama) -- Malaysia Airlines would raise its fares by 15 percent for its economy class and 25 percent for its business class effective Aug 15, due to higher fuel surcharge costs and the imposition of an administration cost.

 

Its managing director Idris Jala said MAS would increase the domestic fuel surcharge to RM20 from RM15 within Peninsular Malaysia and Sabah and Sarawak effective tomorrow.

 

Between Peninsular Malaysia and Sabah and Sarawak, the fuel surcharge would be raised to RM51 from RM36, he told a press conference here Monday.

 

He said an administration fees of RM14 would also be imposed as practised by budget carrier AirAsia.

 

MAS also aims to break even by the year-end following the implementation of its new business unveiled earlier this year, he said.

 

-- BERNAMA

 

 

Full story again:

 

July 31, 2006 18:13 PM

 

MAS's Domestic Fares To Increase By 15-25 Pct Effective Aug 15

 

 

PETALING JAYA, July 31 (Bernama) -- Malaysia Airlines would raise its domestic fares by 15 percent for its economy class and 25 percent for its business class effective Aug 15, due to higher fuel surcharge costs and the imposition of an administration cost.

 

Its international fares remain unchanged.

 

Despite the fare increase, its managing director Idris Jala said the national carrier's rates would "still be among the lowest in the world."

 

MAS would increase the domestic fuel surcharge to RM20 from RM15 within Peninsular Malaysia and Sabah and Sarawak effective Tuesday.

 

Between Peninsular Malaysia and Sabah and Sarawak, the fuel surcharge would be raised to RM51 from RM36, he told a press conference here Monday.

 

He said the higher fare would also be due to an administration fees of RM14 to be imposed as practised by budget carrier AirAsia.

 

Saying the airlines' domestic fares were "still among the lowest in the world" even with the increase, he explained the cost of flying domestic with MAS was only 62 sen per mile, which is lower than the cost of flying in countries like Thailand, China, Philippines, France and Japan.

 

Stressing that the new fuel surcharge only covers half of the fuel cost, he said it was important for the national carriers to raise its fares now since the last domestic fare hike was done 14 years ago.

 

In addition, inflation and cost of living had gone up over the years.

 

MAS also aims to break even by the year-end following the implementation of its turnaround plan unveiled earlier this year, he said.

 

"Starting from tomorrow we will take full accountability over the profit and loss and as far as we are concerned, we should be in a position not to lose any money this year.

 

"We are planning to make sure that we are track to break even," he added.

 

For next year, Idris said MAS will make further improvements and "hopefully make some money but we really need to work hard on the way to reduce our costs and focus on customers and improve our offer."

 

-- BERNAMA

 

 

 

Is it just me or is the reporting by Bernama inaccurate?

 

If the (effective total) price increase is due to hikes in fuel surcharge and intro. of admin fee - and these are fixed ringgit amounts, why is the percentage overall fare increase static at 15%? One would expect that higher the listed fare, the lower the effective out-of-pocket percentage increase would be?

 

Also, it states tow dates, tomorrow and 15-Aug? So which is which?

 

Probably more to the story than what Bernama reported.

Edited July 31, 2006 by mushrif a

[Woei Shen 0]

So it only affects domestic flights? This is confusing

[Tamizi Hj Tamby 1]

My,the domestic fares is going up? This is not good for MH.....

[Edwin P K 0]

Glad to hear that it's only domestic flights...phew!

 

So I guess my plan to head to HKG in Sept via MH will still stand! No AirAsia...please!

[Tony 1]

Good thing not international flights! I am yet to book my KUL-SYD flight for end of the year! Better hurry...

[M N Fairizuan 0]

Media Release from MAS

The implementation of the domestic aviation rationalisation tomorrow (01

August 2006) is expected to offer local travellers even more choices and

benefits than ever before. Better still, travellers flying with us can

expect to enjoy complimentary value-add services and a more comfortable

experience, not to mention discounts and special care for certain

categories of passengers, and points with their frequent flyer program,

Enrich.

 

In a media briefing held earlier this afternoon, our Managing Director,

Idris Jala highlighted 25 reasons why customers should fly with 'a truly

Malaysian airline'. "The removal of the floor price by the Government has

given us the flexibility to develop and roll out competitively-priced

products and services that cater to all segments of the population. While

our domestic operations may be smaller now, it means that we have a more

efficient and streamlined network that offers more flights to most

destinations, with more convenient and direct connectivity to and from

international destinations.

 

"As a full service airline, flying with Malaysia Airlines means that

travellers can enjoy an inflight service that has earned us numerous awards

in recent years, such as Best Economy Class at the World Airline Awards and

Top 3 Cabin Crew by Skytrax. Being one of only four airlines globally to

be accorded the Five Star award by Skytrax, we believe we can offer a much

more compelling proposition for all travellers, much than any other airline

could ever possibly do here in Malaysia" he added.

 

According to Idris Jala, travellers today are much more discerning. While

price would be a consideration for most, he said that travellers also

expect to have an all-in-one ticket that offers more comfortable experience

when they fly, such as weatherproof access to aircraft, allocated seats,

more legroom and free refreshments on board. In addition, the availability

of facilities and special fares for families and the physically-challenged

are important factors for most people.

 

He added, "Now that we have taken over the P&L for our domestic operations,

it is imperative that we consistently stay ahead of the pack and offer

travellers more compelling reasons to fly with us. We have to ensure that

we offer Malaysians fares that are transparent, with no nasty little

surprises or hidden costs when we provide value-add services to our

customers."

 

This is in line with our promise to offer Malaysian hospitality - hassle

free all the way, which is an integral aspect of 'Flying to Win Customers'

thrust of our Business Turnaround Plan that we announced on 27 February

2006.

 

We are a truly Malaysian airline that has helped to open our nation's

economy for nearly 60 years, flying in millions of tourists every year and

stimulating growth of various spin-off industries that complement the

commercial aviation sector in this country. And we will continue to do so

in the future. After all, Malaysia Airlines is synonymous with Malaysia."

 

At the same time, a new advertising campaign will also kickstart tomorrow.

 

 

Going Places new look produced by BluInc Media.

[Seth K 3]

US is higher in seat per mile for domestic? Man, I need to convert USD to MYR properly as 1 USD doesn't equal 1 MYR

Edited July 31, 2006 by Seth K

[H Azmal 0]

Time to take the train!

[Kee Hooi Yen 0]

Good thing not international flights! I am yet to book my KUL-SYD flight for end of the year! Better hurry...

 

Fly Jetstar from SYD to Bali, Phuket or BKK, then connect with AK to KUL, could be cheaper !

[Azrin A 2]

...Despite the fare increase, its managing director Idris Jala said the national carrier's rates would "still be among the lowest in the world..."

 

A typical Malaysian annotation.. each time compare it to the rest of the world, but maybe it's true in some sense . Wish my RM salary in foreign's

 

 

 

 

 

 

 

[Tony 1]

A typical Malaysian annotation..<_ each time compare it to the rest of world but maybe true in some sense src="%7B___base_url___%7D/uploads/emoticons/default_biggrin.png" alt=":D">. Wish my RM salary in foreign's

Yeah...they always do that eh? The comparison of fares around the world. But the moment you put a graph of salary comparison around the world, it'll be obvious that they shouldn't charge more!!

[Seth K 3]

A typical Malaysian annotation..<_ each time compare it to the rest of world but maybe true in some sense src="%7B___base_url___%7D/uploads/emoticons/default_biggrin.png" alt=":D">. Wish my RM salary in foreign's

Why MH increase fare at high price in one annoucement? Is Malaysian getting richer or MH getting poorer? The CEO is an ex-SHELL employee, perhaps, he doesn't operate MH like oil, getting expensive and expensive

[Naim 6]

US is higher in seat per mile for domestic? Man, I need to convert USD to MYR properly as 1 USD doesn't equal 1 MYR

 

I always do a simple comparison. In Malaysia, a fresh univ grad earns about RM2k a month, and in the US, the same person would prolly get US$2k a month. Now who gets to buy more stuff and stretches his money further? Definitely not the Malaysian chap.

 

.ny

 

[Mushrif A 3]

 

 

 

 

 

Given that the 737-400 is the main (easily 80%+) aircraft to service the domestic services, unless MH decides or has reconfigured the cabin, it is misleading to state 34" legroom. One only gets that in the A333, 772 and 744. Very misleading.

 

On comparing the price/mile with other countries, apart from the vast difference in per capita income of many of those countries in the chart vs Malaysia's, it is really all meaningless unless one can fly LH KUL-TGG or UA BKI-KCH etc. In fact, we cannot even buy PEN-KUL domestic tkts on the CX service.

 

[Sing Yew 1]

Given that the 737-400 is the main (easily 80%+) aircraft to service the domestic services, unless MH decides or has reconfigured the cabin, it is misleading to state 34" legroom. One only gets that in the A333, 772 and 744. Very misleading.

 

On comparing the price/mile with other countries, apart from the vast difference in per capita income of many of those countries in the chart vs Malaysia's, it is really all meaningless unless one can fly LH KUL-TGG or UA BKI-KCH etc. In fact, we cannot even buy PEN-KUL domestic tkts on the CX service.

 

And the claims about refreshments being served onboard. In most cases, it's just a cup of juice/milo unless you're flying Business Class.

 

[Seth K 3]

I always do a simple comparison. In Malaysia, a fresh univ grad earns about RM2k a month, and in the US, the same person would prolly get US$2k a month. Now who gets to buy more stuff and stretches his money further? Definitely not the Malaysian chap.

 

.ny

What kind of frEsh grad make USD2K a month?

Good comparison Naim

 

26 Reasons to fly MH, but 1 reason to not fly MH.................the fare

AirAsia-Now everyone can fly

Edited August 1, 2006 by Seth K

[Mushrif A 3]

And the claims about refreshments being served onboard. In most cases, it's just a cup of juice/milo unless you're flying Business Class.

 

Well, I think that is correct as a cup of milo or whatever is still a refreshment.

 

I think what MH has omitted in the campaign but is a very strong point is when things go wrong - like if your luggage is pilfered, missing, late or flight is delayed etc. AK's service recovery is of course appalling but MH is substantially better (though still not as refined as, say, SQ).

 

Separately, I remember some many years ago but not too long ago (mid-90s?) when MH did a campaign to promote its domestic services and during this period (pre-97 crisis), you even get muffins/ pastries in Y on short flights like to IPH and KUA.

 

[M N Fairizuan 0]

Given that the 737-400 is the main (easily 80%+) aircraft to service the domestic services, unless MH decides or has reconfigured the cabin, it is misleading to state 34" legroom. One only gets that in the A333, 772 and 744. Very misleading.

 

Quote from the ads "Terms and conditions apply. ..................."

 

[Kee Hooi Yen 0]

 

26 Reasons to fly MH, but 1 reason to not fly MH.................the fare

AirAsia-Now everyone can fly

 

Good one

[Naim 6]

What kind of frEsh grad make USD2K a month?

 

Heheheh ... the same person who's earning MYR2k in Malaysia. Obviously not an MBA lah.

 

Anyway I found this '2k' number handy for back-of-the-envelope calculations. Seems to be the ballpark for how much a fresh first degree holder typically earns: S$2k/mth in Singapore, US$2k in Japan, US$2k in Gulf States, A$2k in Australia. Do check the numbers out.

 

.ny

[Edwin P K 0]

Good one Seth!!!...imagine Air Asia fights back with a FULL page advert....with just 1 line...

 

"1 reason to fly Air Asia...everyday LOW fare"

 

Imagine the faces on the MAS management!!

 

Heheheh ... the same person who's earning MYR2k in Malaysia. Obviously not an MBA lah.

 

Anyway I found this '2k' number handy for back-of-the-envelope calculations. Seems to be the ballpark for how much a fresh first degree holder typically earns: S$2k/mth in Singapore, US$2k in Japan, US$2k in Gulf States, A$2k in Australia. Do check the numbers out.

 

.ny

 

You are right, Naim.

 

In that perspective, here in the UK , for 9 pounds, you can get a CD. A Nikon D50? 500 pounds. But in Malaysia, to get a D50 for 500 ringgit? never! So if you are a fresh grad and earn 2K pounds, you can buy a D50 with your first paycheque. But for a Malaysian grad? It'll probaby take few months (or years la!)

 

So the spending power of Ringgit is really really low

[H C Chai 4]

I found out that Airasia has also increased their fuel surcharge/ admin fee the same time as MAS! They have gone up from RM35 to RM40 for flights within the Penisular and RM50 to RM65 for flights to East Malaysia! Ouch!!!

 

 

[Naim 6]

I found out that Airasia has also increased their fuel surcharge/ admin fee the same time as MAS! They have gone up from RM35 to RM40 for flights within the Penisular and RM50 to RM65 for flights to East Malaysia! Ouch!!!

 

Yes, I discovered that just a few minutes ago when I booked a couple of 0.99 tix for PEN-KUL return, for my daughter.

 

On the plus side, I booked 5 return tickets for KUL-BKI at RM29.99+RM50 a pop, just last week!

 

.ny

[Rozhan 0]

Now more than ever, it's time to fly the competition.