MAS Wants New Planes For New Routes To Be Profitable

[Fairul 0]

good news indeed...what do you guys think? A320? A321?..B737-800 ?

 

MAS Wants New Planes For New Routes To Be Profitable

 

March 22, 2007 20:29 PM

 

KUALA LUMPUR, March 22 (Bernama) -- Malaysia Airlines is looking at acquiring long range narrow body aircraft which will allow it to operate profitably on new routes where its A330 is too large and the B737-400 lacks the range, managing director Idris Jala said Thursday.

 

He said part of the proceeds of the airline's RM1.5 billion rights issue and redeemable convertible preference shares (RCPS) will go towards acquiring new aircraft and replacing some of the existing ones.

 

"We would like to own some of the aircraft and we lease some. The ones we intend to own are to serve our core network. So, when the time is right to replace the aircraft, we can sell and purchase a new one," he told reporters on the sidelines of the Invest Malaysia 2007 conference here.

 

MAS, he said, wants to have the best aircraft for its core routes so that it will have the flexibility to dispose and change in a competitive environment.

 

The leased aircraft, meanwhile, will serve the non-core routes. He said "options are open" either to lease from Penerbangan Malaysia Bhd or others.

 

He said MAS is talking to both European consortium Airbus and American plane manufacturer Boeing on this but has yet to decide on the type of aircraft to be bought. He also did not reveal the number of aircraft MAS plans to have.

 

However, Jala said that the narrow body aircraft will mainly serve Asia.

 

Going forward, he said MAS will want to operate only two types of aircraft, from the current four.

 

"(To operate) a good and profitable airline (one should) not have too many different types of aircraft in its fleet. Because if you have less aircraft variety you significantly reduce your maintenance and training costs."

 

However, this cannot be done overnight, he noted. "Of course you cannot straight away flip into two different types of aircraft from Day One. You have to work out the transition on how to get there."

 

On other developments, Jala said the 2007-2011 network plan will see the national carrier expanding its core network in the Asia-Pacific while strengthening its hub and spoke connectivity in Europe, Australia and New Zealand. "The Asia-Pacific region is where the growth is. We expect to see vibrant growth as the economies remain strong at some six percent (annual growth) until 2015, ramping up the demand for air travel. These are exciting times especially as we are expand into China and India," said Jala.

 

In the next five years, he said, MAS will increase its flight frequencies and offer new destinations. The national airline will also sign code-share agreements that will give access to many southern European points.

 

"More agreements are in the pipeline," said Jala.

 

As for the new network, he said routes in the Middle East will be restructured, while flight frequencies to non-trunk markets such as North America, South America and South Africa will remain unchanged.

 

-- BERNAMA

 

[Seth K 3]

Isn't that's what Jala said when he entered the office first day Yeah, the surprise is they gonna stick on 2 type, that's possibilty combinations of 737/787, 737/777, 737/748, 320/330 or 340, 320/380, 320/350. Well, strongly agree they need time to do this, but this sounds like A380 cancellation

Edited March 22, 2007 by Seth K

[Seng Lim 0]

Yes, A380 definitely doesn't fit into the '2 type' strategy.

[Rozhan 0]

2 plane types will be a boring way to fly.

[T Azahan 1]

787!!! yeah........!!!

[Mushrif A 3]

MH has or will be issuing a rights issue (more than a billion MYR) to part-finance this new order. For its size, MH is very much under-capitalised anyway.

 

Jala did announce earlier this yr that new aircraft orders starting with narrow bodies will be done in 2008. So, it will be around 2009 before we starting seeing them trickling in.

[Radzi 2]

2 plane types will be a boring way to fly.

 

Disagree.

 

If only 2 types, one narrowbody and one widebody, it is better. One widebody will fly to all long-distance routes, which means I'll have the chance to fly to all destinations.

 

I expect in the long term it will be a NB (A320-class or B737NG) and the B777 variant (B77W? ). The Whale is missing!

 

[Daljit Singh 0]

One question, if MAS operates two types of aircraft, lets say 737/777, will it mean that MAS will operate a large number of them to compensate the loss of seats frm 747's?

[Mushrif A 3]

2 plane types will be a boring way to fly.

 

There's always that other airline which is "a great way to fly.".....380, 330, 77W, 787, 350...

 

[Mushrif A 3]

I expect in the long term it will be a NB (A320-class or B737NG) and the B777 variant (B77W? ). The Whale is missing!

 

The widebody will probably be a 787 or 350 variant. 77W will be so "yesterday" by the time MH orders it (if at all)

 

[KK Lee 5]

Ideally, MH need 3 aircraft type fleet. One for 150 pax regional (737X or A320), one for 220 to 280 pax thin and long haul (787 or A350) and the third for 300+ pax trunk long haul (A380 or 77W). However, selection made by MH is very often not related to reality, requirement or pax demand but politic.

 

From the government’s unfriendly policy toward the U.S. We are lucky that Russia and Cuba can’t produce a reasonable pax aircraft; Otherwise, one of the type will be Russian or Cuban.

 

Believe Boeing is considering to improve 737NG with 787 technology to meet U.S. airlines demand. If MH can withhold the 150 pax regional orders to a few years later, we may see 737NNG in MH lively. Again, we never know, MH may order the last few production run of 737NG.

 

[Andrew Ong 1]

The widebody will probably be a 787 or 350 variant.

 

Don't forget the 747-8 Intercontinental

[Teoh Z Yao 0]

No more 320, please! Too many of them on Malaysian soil! And the 737 are being phased out by one of our operators! That's not fair for the baby Boeing!!

[Edwin Lau 0]

Ideally, MH need 3 aircraft type fleet. One for 150 pax regional (737X or A320), one for 220 to 280 pax thin and long haul (787 or A350) and the third for 300+ pax trunk long haul (A380 or 77W). However, selection made by MH is very often not related to reality, requirement or pax demand but politic.

 

From the government’s unfriendly policy toward the U.S. We are lucky that Russia and Cuba can’t produce a reasonable pax aircraft; Otherwise, one of the type will be Russian or Cuban.

 

Believe Boeing is considering to improve 737NG with 787 technology to meet U.S. airlines demand. If MH can withhold the 150 pax regional orders to a few years later, we may see 737NNG in MH lively. Again, we never know, MH may order the last few production run of 737NG.

 

 

 

So if MH is using NB to serve Asian routes...could this mean that they won't be using WB to serve domestic routes.... meaning that no more A330/B772 serving Kuching anymore......

 

if that is true that would be sad and unfair!!

[Min Chun 0]

The widebody will probably be a 787 or 350 variant. 77W will be so "yesterday" by the time MH orders it (if at all)

 

 

 

:lol:

Yeah..certainly agree with this..It will be so 'yesterday'

[Sherman 0]

IMO, 3 types is better. 737, 777 and 747.

 

btw, may i ask you guys some question? what it mean by core routes? and any differences within 748 and 748 intercontinental? sorry for my ignorance...

[Seth K 3]

There's always that other airline which is "a great way to fly.".....380, 330, 77W, 787, 350...

I dun think a great way to fly depend on the type(of course that some may argue other type better), but what's offer inside is the one that define "flying"

Pour example: Which one u want to stuck inside, TG 777 or MH?

 

IMO, 3 types is better. 737, 777 and 747.

 

btw, may i ask you guys some question? what it mean by core routes? and any differences within 748 and 748 intercontinental? sorry for my ignorance...

Core route is trunk route(?) And 748 come with (i)-intercontinental, there no such thing as 748, it's 748i, but easier just to say 748

I agree, three types makes more sense.........737/783/748 is the one that they desire

Edited March 23, 2007 by Seth K

[Seth K 3]

The widebody will probably be a 787 or 350 variant. 77W will be so "yesterday" by the time MH orders it (if at all)

The 77W won't be so "yesterday", by the time MH order(if at all), they can bargain this aircraft, and order some 787 all along(when the earliest can they get 787 anyway?) This is buy A380 get 330 case

 

So if MH is using NB to serve Asian routes...could this mean that they won't be using WB to serve domestic routes.... meaning that no more A330/B772 serving Kuching anymore......

MH can utilise the widebody for domestic route anytime, the usage of their aircraft is not limited to long haul operation. The resting WB can always make a side trip to East Coast Which they are doing right now...

 

Edited March 23, 2007 by Seth K

[Sung 0]

I thought the news mentioned about "Narrow Body"? It can be either 737 NG or A320, 2 possibilities. If they wanted to reduce variations in MH fleets to reduce maintenance and training costs, 737 NG would be the preferable as it has the same system as 737 Classic only it's in digital.

[Rozhan 0]

One widebody will fly to all long-distance routes, which means I'll have the chance to fly to all destinations.

 

Capt Radzi, are you moving up to command widebodies next? Congrats!

[Radzi 2]

Capt Radzi, are you moving up to command widebodies next? Congrats!

 

Not yet, but I'll get there someday.

 

[BC Tam 2]

..... but this sounds like A380 cancellation

How about PNB buys the whales but lease them to other airlines, not necessarily Malaysian carrier(s)

Sort of face saving measure so Airbus doesn't have another cancellation, Malaysia masih mampu beli yang tercanggih (can still afford the best !) and MH isn't stuck with a fleet that (we presume) doesn't fit into its future plans

 

Just some thoughts

[Seth K 3]

How about PNB buys the whales but lease them to other airlines, not necessarily Malaysian carrier(s)

Sort of face saving measure so Airbus doesn't have another cancellation

 

That's an alternative. PNB can lease this birdies to airline that need it for big event such as FIFA 2010 to SAA, Olympic to BA/Chinese carrier's(too late thou) etc. But I dun understand why??? why MH has to lease the plane from other company(a whole lot of them), can't they buy the planes themselves? What's the point? PNB is not the one that want to buy this A380 but MH, and sound ridiculous that others has to buy for them And also why everything has to be direct to MH, they doesn't even own the planes. Like the rumour of cancellation, why ask MH not PNB, it's not like the A380 own by MH? dua cents

 

Just some thoughts

That's what we want here, sharing thoughts and ideas

Edited March 25, 2007 by Seth K

[Sanjay Thaker 0]

thanx to some really 'tan sri' before, like what Capt Radzi said, MH did not have the ability financially to buy their aircrafts. But now, under the stewardship of Mr. Idris, MH is certainly looking at owning as many of their own aircrafts as they can...

[Sri Ramani K. 0]

thanx to some really 'tan sri' before, like what Capt Radzi said, MH did not have the ability financially to buy their aircrafts. But now, under the stewardship of Mr. Idris, MH is certainly looking at owning as many of their own aircrafts as they can...

 

i guess it'll take him quite some time before he actually make the planes his..so many other stuff to make up for before they can even dream of expansion..