‘Fare bucket’ scheme for MAS

[Naim 6]

Interesting item in today's Star. Good write-up by Ms Sidhu. Read the whole article if you can.

 

.naim

 

The Star

Wednesday August 2, 2006

 

‘Fare bucket’ scheme for MAS

 

By B.K. SIDHU

 

PETALING JAYA: Malaysia Airlines (MAS) kicked up so much fuss over the floor pricing for domestic airfares that the Government had to lift it. But instead of lowering fares, the national carrier announced a weighted-average fare hike for the 22 routes which takes effect in two weeks.

 

So much for giving rival AirAsia a run for its money with competitive pricing.

 

Contrary to market perception that AirAsia would follow suit in raising its airfares, group chief executive officer Datuk Tony Fernandes said the no-frills carrier had no such plans, at least for now.

 

“We are not raising our airfares,’’ Fernandes told StarBiz via SMS.

 

...

 

However, it was also reported that MAS would “launch its cheapest domestic fares ever to be sold via its revamped online booking’’.

 

While MAS is keeping the final pricing close to its chest, the team working out the fares would likely come up with seven to nine buckets – seven for economy and two for business class. (Fare bucket refers to the allocation of a certain number of seats at a certain fare.)

 

...

 

“MAS would start quoting domestic fares in seven fare buckets, emulating AirAsia’s tactic for attracting public attention. Early birds would secure below-average fares while late bookings will be subject to higher-than-average fares,’’ the analyst's report said.

 

...

 

[read the whole story at http://biz.thestar.com.my/news/story.asp?f...95&sec=business ]

Edited August 2, 2006 by Naim

[Mushrif A 3]

 

Frankly, I actually expected a bit more depth from veteran Sidhu, with more than a decade coverage on MAS and its sector. Her style unfortunately is more scratch-the-surface and headlines with little analysis + call up analysts here & there for opinions, turn the handle and here's an article for The Star. The Edge does a better investigative reporting. ANyway this is off-topic.

 

She forgot to ask if AK will be raising fuel surcharges and/or admin fee. What is important to the consumer is the total out-of-pocket cost.

 

And the fare bucket is really a no-brainer - these are the current C & D for business and Y, W, M, K, H, Q, B, L and V and most, if not all, have pre-existed well before 1-Aug.

 

What will be interesting is that some discounted fares may only be available through the website. I wish the website also allows for mixed class reservations for return or multi-sector trips + seat selection. Otherwise, still need to do offline.

 

 

[Kevin Teh 0]

i wish they provide more paymenet method eg. Maybank2u on their website. I can't even buy a ticket using my parents or cousins credit card as they stated we must show the credit card upon ticket collection. While SIA website do have an option for you to check if the cardholder is not travelling.

 

 

[Leo 0]

Guess what Air Asia just rise again their fuel surcharges and/or admin fee. You are right Mushrif A. Air Asia really know how to mislead people. Here mention to people we would not rise the ticket price, but behind do nasty thing by increase fuel surcharges and admin fee.

 

last month KUL-BKI tax is RM50 which already increase RM10 from feb. The latest I check in Air Asia website, tax have increase another RM15 which are now RM65 one way. damn Air Asia.

Edited August 2, 2006 by Leo

[Mushrif A 3]

15-August came and went. So what happened to the new fares for domestic routes?

 

Spanner in the works?

[Edwin P K 0]

Looks like they love to delay their works as and when they like. How unprofessional of them. Just like those features that wanted to introduce for the Enrich members (transfer miles, voucher redemptions), still no news of it.

[Sing Yew 1]

Looks like they love to delay their works as and when they like. How unprofessional of them. Just like those features that wanted to introduce for the Enrich members (transfer miles, voucher redemptions), still no news of it.

 

Well that's the way they work around. I have taken a wait-and-see approach on their claims of "Coming Soon".

 

 

[Edwin P K 0]

I really hate it when it comes to how the approach the business, there isn't any finest in their operation at all! Someone bold needs to take over and make sure even small things like these are apprehended and taken into consideration for!

 

 

[Azrin A 2]

15-August came and went. So what happened to the new fares for domestic routes?

 

Spanner in the works?

 

I was told by the MAS reservation personnel yesterday morning that the date has being shifted to the 21st.

So better hurry to change flight plans, if any or buy a new one. Once bought, stick to it and you'll safe

 

[H C Chai 4]

Did anyone been to the MAS website lately?

 

It seems like MAS has changed its pricing system for the domestic flights, but the website isn't working!! (at least for me?!) I have tried 4 times to book a RM0.00+45(tax) flight from Sibu to Kuching but it didn't get through.

 

[Seng Lim 0]

Latest News update:

 

Discounts for one million MAS domestic tickets

 

News Update by M.KRISHNAMOORTHY of The Star

 

KUALA LUMPUR: Malaysia Airlines is offering up to 60% discount for one million domestic flight tickets via online booking.

 

The online bookings for attractive rates starts from next month to July 31, next year.

 

Its managing director Idris Jala said the new fare structure was on a one-way basis, adding that the discounts were between 10% and 60%.

 

Malaysia Airlines’ revised one-way economy class online fares starting from as low as RM59 for travel within East Malaysia, RM69 for travel within Peninsula Malaysia and RM99 for travel between Peninsula and East Malaysia.

[Seth K 3]

Latest News update:

 

Discounts for one million MAS domestic tickets

 

News Update by M.KRISHNAMOORTHY of The Star

 

KUALA LUMPUR: Malaysia Airlines is offering up to 60% discount for one million domestic flight tickets via online booking.

 

The online bookings for attractive rates starts from next month to July 31, next year.

 

Its managing director Idris Jala said the new fare structure was on a one-way basis, adding that the discounts were between 10% and 60%.

 

Malaysia Airlines’ revised one-way economy class online fares starting from as low as RM59 for travel within East Malaysia, RM69 for travel within Peninsula Malaysia and RM99 for travel between Peninsula and East Malaysia.

Time for shopping at malaysia airlines dot com

[Seng Lim 0]

This is the official press release from MAS website.

Summary:

Business Class = 2 fares segment.

Economy = 5 fares segment for phone booking & travel agents.

= 7 fares segment for online booking (lower starting price!) + admin fee waived!

 

 

21 Aug, 2006

MALAYSIA AIRLINES OFFERS FLEXIBLE DOMESTIC TRAVEL FARES More lower airfares despite increase in full fares and fuel surcharges

 

Malaysia Airlines today implemented a new “micro-segmentised” fare system for its rationalised domestic network covering 23 routes.

 

This initiative, in line with the ‘Flying to Win Customers’ thrust of the national carrier’s Business Turnaround Plan, will see the introduction of 2 business class and 5 economy class segments one-way fares offered through both Malaysia Airlines offices (Call Centre and ticketing) and travel agents. These fares and another two-tier economy class segment one-way fares are also offered online at www.malaysiaairlines.com.

 

In addition to price flexibility, each fare segment has its own set of rules and regulations covering aspects like ticketing deadlines, refunds, cancellations, no-shows, advance purchase eligibilities and fare restrictions.

 

The revised fares thus allow travellers the freedom to combine different one-way fares to plan their air travel for both outbound and inbound flights, whilst enjoying a truly Malaysian hospitality at every point of engagement with the national carrier. With this new fare structure, customers can actually get to enjoy airfares lesser than rates charged previously.

 

Mr Idris Jala, Managing Director/CEO of Malaysia Airlines,

said “Although the full fares for the economy and business class travel have been raised to a weighted average of 15% and 30% respectively from the previous levels, our customers will continue to enjoy one of the lowest domestic airfares in the world. Research shows that Malaysia comes second to Thailand in terms of average domestic fares. It costs RM 0.63 per mile in Thailand and RM 0.71 in Malaysia while it is the highest in Japan at RM 43.41 per mile”

 

“When we reviewed our domestic fares, we took into consideration that the travelling public want more affordable choices. We went through cost-cutting measures that positively affect both our Business Turnaround Plan and our fares. In particular, we remain committed to the government’s national integration initiatives and we are now offering trans-Malaysian fares that start from levels lower than the rates prevailing before 21 August 2006”.

 

“In addition to the fares offered through traditional distribution channels, we have also introduced exclusive fares through our website. We save distribution costs and lower our labour cost through this channel and the consumer thus benefits from the best prices online. For the period 1 September 2006 to 31 July 2007 we are offering 1,000, 000 domestic seats online at these attractive rates,” he added.

 

Malaysia Airlines will continue to offer existing discounts on the normal economy class fares for senior citizens, members of parliament, blind and disabled, students, media, security forces, corporate travel and family travel.

 

Apart from these discounts, Malaysia Airlines has ceased offering its previous fares and all other discounts. However, during the implementation of the ‘micro-segmentised’ fare system effective today, Malaysia Airlines will continue to honour all transactions paid at the previous fares.

 

Likewise bookings done prior to 21 August 2006 will still be honoured at the previous fares, provided ticketed by the deadline given or 11 September 2006, whichever is earlier.

 

To ensure transparency of transactions, all fares offered effective immediately will be reflected on the tickets or transaction slips for customers, in line with the airline’s recent cut over to nett fares display on tickets.

 

Malaysia Airlines’ revised one-way economy class online fares start from as low as RM 59 for travel within East Malaysia, RM 69 for travel within Peninsula Malaysia and RM 99 for travel between Peninsula and East Malaysia. The airline’s administration fee is waived for online bookings.

 

Economy class one-way fares transacted through Malaysia Airlines’ 24-hour Call Centre and traditional distribution channels start from RM 79 for travel within East Malaysia, RM 89 for travel within Peninsular Malaysia and RM 149 for travel between Peninsular and East Malaysia.

 

For more information, customers can contact Malaysia Airlines 24-hour call centre, 1300 88 3000.

 

Issued by: Media Relations, Corporate Communications Malaysia Airlines, Kuala Lumpur

 

For more information on this release, media members may contact:

Anbarasu.S

Tel : 03 7840 3884

Mobile : 019 2224952

Email: arasu@mas.com.my