MH's Most Profitable Route(s)

[Sanjay Thaker 0]

The EZE route is being serviced because of a bilateral agreement between the Malaysian Govt..and the Argentiniant Govt....theres something they are giving us which Malaysia is benefiting from..the last i heard it..it was something to do with oil...and thts why..one of the clauses included..MH has to have a flight there....its not too bad anyway...the flight isnt too empty..it has quite a load..

[Roszaimy 0]

The EZE route is being serviced because of a bilateral agreement between the Malaysian Govt..and the Argentiniant Govt....theres something they are giving us which Malaysia is benefiting from..the last i heard it..it was something to do with oil...and thts why..one of the clauses included..MH has to have a flight there....its not too bad anyway...the flight isnt too empty..it has quite a load..

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Actually Petronas already disposed its pipeline business in Argentina. As far as I know lah. So maybe it's not really oil-and-gas business travel kinda thing. Probably just a regular trade mission and business meetings between the two countries.

 

[Roszaimy 0]

3. ARGENTINA

DOWNSTREAM:

Gas Pipeline Network

Interest in two major high pressure gas transmission pipelines in Argentina, Transportadora de Gas Del Norte S.A. (TGN) and Transportadora de Gas Del Mercosur S.A. (TGM).

 

Opps, I think Petronas still has the business. Maybe the one I read was about Petronas reducing the stakes only. The Argentina business is still listed in Petronas corporate website.

[kandiah k 0]

A friend of mine travelled from NGO to JNB sometime in July and August via KUL on MH and she told me the flight was almost full on all sectors (NGO-KUL, KUL-JNB, JNB-KUL, KUL-NGO)

 

I know it does not necessarily mean the route is making a profit but does that also mean the airline could be making a marginal profit at least ?

 

How about other routes such as FCO and ZRH which never seem to have an increase in frequencies ?

 

[Bing Chu 0]

..... the flight was almost full on all sectors (NGO-KUL, KUL-JNB, JNB-KUL, KUL-NGO)

 

I know it does not necessarily mean the route is making a profit .....

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If an airline is operating on 'almost full' capacity on a route and still not make a profit on it, they are better off doing something else what !

[Sanjay Thaker 0]

what if MH wasnt flying to EZE....no more tagline saying ...Over 100 Destinations..Across 6 continents......not something many airlines can boast about..anyway..flghts on this route is not tht empty...it has quite a lot...since its the only way to get to S.E Asia fastest...from S.America

[Mohd Razif 0]

it's also the longest (scheduled)commercial flight (25hrs 30min)..something to be proud of i think...

Edited September 25, 2005 by mohd razif

[Keno Omar 0]

it's also the longest (scheduled)commercial flight (25hrs  30min)..something to be proud of i think...

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One of the longest, but not THE longest.

 

Varig still fly GIG-GRU-LAX-NRT on MD11

27h 45m westbound, 25h 40m eastbound

 

This is the longest (time) scheduled flight at the moment, and the #2 longest in terms of distance (#1 is NZ1/NZ2 AKL-LAX-LHR). As far as EZE might be from KUL, when it comes to distance it's actually only around at #8 in the Top 10 list. Europe-Australia/NZ is further.

Edited September 27, 2005 by Keno Omar

[kandiah k 0]

Do you all remember when MAS at one time was keen to scrap MAN, ZRH, EZE, CPT and many more after 9/11 ?

[Isaac 0]

Do you all remember when MAS at one time was keen to scrap MAN, ZRH, EZE, CPT and many more after 9/11 ?

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Yeah. I do remember that. I think they suspended service to 11 cities & sadly some of them NEVER came back to MAS map

 

[Ruiz Razy 1]

Guys,

Profitable route would normally relate to YIELDS.... In this case full EY does not mean profitable. A Full J/C class and F /P class are much better that EY.

 

LH made hundredrs of millions in Euros coz. their J class is doing very well. FRA / MUC - US WEST Coast is a gold mine for them. I remember reading in Airline Business a few years back the senior chap from LH said.... "to make money in airline industry is to just concentrate on filling Club / Business class with full fare pax. thats it".

 

Back to MH, although LHR and SYD may be full, I would imagine middle east routes such as JED and ocassinally DXB are profitable as they need not have any speacial fares / offers on these routes. Mind you the C and F fares (particularly to JED) is really high, unlike LHR / SYD ... where you can get ocassional triple miles / miles offers and free upgrades.

[kandiah k 0]

I guess you are right RUIZ, but why does MH only fly 5x weekly to DXB and thrice to JED ? Could it mean that the route is a gold mine for MH ?

 

[Ruiz Razy 1]

More Frequencies does not necessarily mean better.

Otherwise there will be .... over capacity and that's when one starts to slash fares. Thus yields affected.

 

However, additional flights must only be added when there's suffiecient demand. Back to basic A-levels Economics. " Supply should never exceed Demand". When there's more demand, and not much supply, that's when one can get good returns.

 

Not sure about DXB, but I think KUL - JED is good as it's just thrice a week and up to say daily or more during peak season such as Ramadhan and Hadj.( excluding Hadj charters)

 

However, key cities should be conveniently served at least twice a day and be more focussed for business travellers. They would normally opt for C or F class. Although MH does that, Efforts should be made to encouraged full paying pax.... and not free government upgrades / staff travel.

 

In the case of LH mentioned previously, their main focussed is Business Class. That's why one will see it occupies almost half of the aircraft on main routes and they didn't bother having PTV's in EY as Economy it's not their core business.

 

Perhaps a daily single C class with full paying pax. on 738 / 320 on SYD - KUL - LHR ( something like Privatair) may give better returns than daily A380 with 4 classes on the same route (with discounted fares).

 

 

On a lighter note : I remembered having to pay a lot more for KUL - JED (Ramadhan '04) than KUL - LHR ( Summer '05) , although it's bad for individuals, but it's good for airline business.

 

 

 

 

 

[Isaac 0]

In the case of LH mentioned previously, their main focussed is Business Class. That's why one will see it occupies almost half of the aircraft on main routes and they didn't bother having PTV's in EY as Economy it's not their core business.

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Yeah and that's why many LH EY travellers went for BA & AF, and soon KL. But a friend of mine told me LH is way better than AF in EY (even AF got larger food portion & PTV in every seats) because LH has a MUCH FRIENDLIER crews.

 

[Tony 1]

A Full J/C class and F /P class are much better that EY.

 

"to make money in airline industry is to just concentrate on filling Club / Business class with full fare pax. thats it".

 

Mind you the C  and F fares (particularly to JED) is really high, unlike LHR / SYD ... where you can get ocassional triple miles / miles offers and free upgrades.

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Fully agree with Ruiz - you studying aviation economics? The important bit is to fill up the premium classes with full-fare paying pax first, then discounted premium, then full-fare economy, discounted economy, and finally heavily discounted economy (that's where student tickets are). By filling up, I mean physically fly the sector, not just buying a ticket!

 

 

More Frequencies does not necessarily mean better. 

Otherwise there will be .... over capacity and that's when one starts to slash fares. Thus yields affected.

 

However, key cities should be conveniently served at least twice a day and be more focussed for business travellers. They would normally opt for C or F class. Although MH does that, Efforts should be made to encouraged full paying pax.... and not free government upgrades / staff travel.

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Correct, full-fare paying pax is always the airline's best friend! And just to add one to the list, frequent flyer redemption might lose airline a little money; but nevermind cuz they keep coming back, giving you more revenue from time to time

[Ruiz Razy 1]

KUL - SIN, may be attractive and very profitable for MH - SQ. ........because

1 Profits shared 50 - 50; no competition.

2 Traffic Rights by other carriers - fully controlled (That's why no AK)

3 Fare - extremely high - comparable to full service flights within EUR and US - but cost / km much lower ( as crew, and catering / service rates lower) therefore high YIELD

4 High Demand for Premium Passengers / high business traffic

5 No demand, flights can easily be cancelled and transfered to another, high demand , aircraft can easily be upgraded or even added within 24 hours ( time utilisation / sector on this route is low)

6 Unsold EY seats can easily be filled - especially during peak periods - Shuttle tickets.

 

 

But...... things will soon change.....

[Jamal 0]

So far KUL - MAA - KUL is the best and profitable route for Mas. They charge upto RM 1700 for return last year. After Jet airways entered this route Mas just charge RM790. Think how much they gain before this on this route. Last week I went to MAA with Mas, all seats are still full.

[Ruiz Razy 1]

Agreed with the KUL - MAA. Something like what has happened on KUL - BKK, LHR/LGW - JFK.

These are classic example of more flights / open sky - affects the YIELD.

 

But controlled, demanding and restricted routes, e.g. KUL - JED or KUL - SIN are more likely profitable.

 

Although MH is the sole carrier on the Kangaroo KUL - LHR, KUL - SYD/MEL/ADL/PER/....etc., Great competition still happens via BKK/SIN and to a certain extent HKG and DXB.