MAS Asked To Revise Air Fares For International Flights

[Pieter C. 5]

Even BA's return ticket in Y between SIN/LHR is cheaper than MH KUL/SIN.

 

Don't tell me, MH KUL-SIN is more expensive than BA SIN-LHR <_>

 

[Isaac 0]

Don't tell me, MH KUL-SIN is more expensive than BA SIN-LHR <_>

Opps, it's "MH KUL/LHR". Typo

 

[Naim 6]

More MAS news ....

 

 

November 03, 2006 21:09 PM

 

Malaysia Airlines To Venture Into New Routes And Capacity

 

By Tengku Noor Shamsiah Tengku Abdullah & Mahanum Aziz

 

SEPANG, Nov 3 (Bernama) -- Malaysia Airlines is optimistic of being back on track ahead of schedule following successful implementation of parts of its turnaround plan and the national carrier will venture into new routes and capacity by 2008.

 

Its managing director Datuk Idris Jala said the airline has managed to do a lot of work on the business turnaround plan for the past six months.

 

"First of all to improve our yield. So in the last 10 months we have improved our yield by 18 percent and we have also improve our network by doing a lot more code-sharing with other airlines," he told Bernama here on Wednesday.

 

Idris said the airline has also managed to reduce its cost.

 

"From January to June this year, we have reduced our cost by RM338 million and this is actually really a big cost reduction within six months," he said.

 

"We have also reduced the number of staff and so we are on track. We hit our first-quarter business turnaround target, we beat the second quarter and on Nov 27 we will announce our third-quarter result and it is promising," he added.

 

Idris said the airline was now trying to cut down on its losses and focus on improving revenue.

 

"So next year is the year that we should really achieve our profitability and that is year two. Year three is the year for growth when we start venturing into new routes and new capacity," he said.

 

He added that the airline planned to do this in a big way in 2008 but it needed to first resolve all its problem.

 

Idris said he was pleased with the cooperation the airline has been receiving from all its staff.

 

"The result we achieved so far this year surprised ourselves. It is moving quicker than we have expected and that's really good. There is a lot of enthusiasm and support to turn around further the company next year," he said.

 

Idris said he has no reason to believe that the airline would not be ahead of its turnaround plan.

 

"This is because of the support we have received from staff not just from Malaysia but also overseas. They all want to fix the problems faced by Malaysia Airlines," he said.

 

Malaysia Airlines earlier this year announced the beginning of its route rationalisation plan, which involved cancelling certain domestic destinations and long-haul international routes.

 

The changes are part of a three-year plan to revive the national carrier's fortunes after it had posted a RM1.3 billion loss for the 2005 financial year.

 

The airline blamed the losses on rising fuel prices and lower load factors but expects to be profitable again in 2007.

 

The turnaround plan, costing about RM4 billion, includes the restructuring of the airline's loss-making domestic service.

 

On Wednesday night, Idris represented the airline to receive the Kuala Lumpur International Airport (KLIA) "Carrier of the Year" award organised by Malaysia Airports Holdings Bhd from Transport Minister Datuk Seri Chan Kong Choy.

 

Idris said the award was a tribute to the airline staff and services.

 

-- BERNAMA

[Sanjay Thaker 0]

wow...very very encouraging and promising words by Mr. Jala....u know i somehow really like his way of doing it...he may be criticised for cutting down on routes..but he knows what he wants..

[KK Lee 5]

 

Believe MH is making more than expected money from the fuel surcharge when oil price is dropping. Expect MH to announce a very good (i.e. better than expected) income for 3Q/06, unless they plan to move this profit for later.

 

[Sandeep G 1]

wow...very very encouraging and promising words by Mr. Jala....u know i somehow really like his way of doing it...he may be criticised for cutting down on routes..but he knows what he wants..

 

Sanjay,

 

it's just what MH needs really. An aggresive management that will do things for the benefit of the airline and shareholders rather than for the MPs and State and Federal Governments.

 

[Naim 6]

November 12, 2006 21:31 PM

 

MAS Reiterates Its Fares Are Competitive

 

KUALA LUMPUR, Nov 12 (Bernama) -- Malaysia Airlines has reiterated that its fares are competitive.

 

The national carrier said reports that its fares are high were inaccurate as airline pricing was very sophisticated.

 

Therefore, it is incorrect to conduct pricing survey on the basis of simple markers, MAS said when clarifying recent reports on its fares and calls for availability of seats inventory for advanced bookings by customers.

 

To get cheaper fares, MAS said passengers should book and purchase tickets early, book via the internet, travel during low season periods, fly on less popular schedules, travel during weekdays and look out for tactical fares.

 

On an average, MAS has 18 fare categories with different levels and conditions, taking into consideration about 60 different points of sales.

 

Each point of sale has different price, seven days a week with the possibility of a different price each day and three seasons a year namely low, shoulder and peak periods determining applicable seasonal fares.

 

As Malaysia Airlines serves more than 100 routes, using the calculation 18 x 60 x 7 x 3 x 100, it can be established that the national carrier has about 2.5 million different fare permutations, MAS said.

 

Given the price complexity, even if a pricing survey is conducted amongst MAS' passengers on the same routes, it would be evident that these passengers pay different fares.

 

Likewise, if a fare comparison is made between MAS and other airlines, it is always possible to arrive at different conclusions.

 

MAS also expressed concern about the recent survey on air fares mentioned in the media recently.

 

MAS Managing Director, Idris Jala, said: In our efforts to prove that we have not out-priced our fares based on the market supply and demand, our management has compiled some findings and shared it with the Ministry of Transport for engagement with the relevant agencies."

 

Turning to seats availability in United Kingdom and Europe, MAS said recent reports that agents in Scotland could not get to do advance bookings is inaccurate.

 

In the UK and Europe, all relevant travel agents have been alerted to call MAS if they face difficulties in making early bookings for their customers.

 

At present MAS has between 500,000 to 2,000,000 seats available for the period between January to June 2007 and is willing to offer these to any of the travel agents for immediate early bookings, subject to the right price.

 

In a separate statement, MAS clarified that on July 28 this year, it secured shareholders' approval for a Redeemable Preference Shares (RPS) option to be exercised, if necessary, at a later date.

 

In an interview last week, Idris was referring to the RPS and not to any other rights issue during his media interview in Singapore, MAS.

 

-- BERNAMA