MAS On Path Towards Continued Profitable Operations

[Naim 6]

 

September 17, 2007 21:07 PM

 

MAS On Path Towards Continued Profitable Operations

 

KUALA LUMPUR, Sept 17 (Bernama) -- Malaysia Airlines (MAS) is firmly on the path towards continued profitable operations.

 

In a statement here today, managing director/chief executive officer, Datuk Idris Jala, said this was based on the airline's route analysis initiatives and the continuous upgrade of customer value propositions.

 

"Having successfully anchored all aspects of our operations to the P & L (profit & loss), we are working aggressively towards becoming a five-star airline with low-cost carrier's cost," he said in announcing the changes to the airline's international network for the Northern Winter 2007 operations, starting Oct 28.

 

Idris said these attributes had been factored into the new schedules, with emphasis on regions like South Asia and Australia.

 

"These regions continue to be promising and have further potential to contribute towards the profitability of the company," he said.

 

On the new Northern Winter 2007 operations, MAS said it would add a fourth weekly frequency every Thursday on the Kuala Lumpur-Maldives-Colombo-Kuala Lumpur route and a similar frequency on the Kuala Lumpur/Bangalore route every Saturday.

 

It would also introduce two weekly morning frequencies on the KL/Chennai/KL route every Thursday and Sunday.

 

In view of encouraging demand, the current Tuesday frequency of the KL/Hyderabad return flight now using the 229-seater Airbus A330-200 aircraft will be upgraded to a 294-seater Airbus A330-300 flight effective Oct 28, it said.

 

MAS said a new destination, Lahore/Pakistan, would be added to its international network effective Jan 7, 2008.

 

"We will operate three weekly flights (on Monday, Thursday and Saturday) from KL to this city. This destination will be linked to the KL-Karachi return route," it said.

 

The airline said the present twice weekly KL/Istanbul return direct A330-200 service would be realigned to twice weekly KL-Dubai-Istanbul return service effective Jan 8, 2008.

 

MAS said for the Malaysia-Australia operations, a fifth weekly frequency on Tuesdays would be introduced on the KL/Adelaide return route during the peak period effective Dec 4, 2007 to Feb 6, 2008.

 

"Likewise, a third weekly evening frequency will be mounted for the KL/Perth return route every Wednesday during the peak period effective Dec 5, 2007 to Feb 7, 2008," it said.

 

On the China operations, MAS said the present four-time weekly KL-Xiamen frequency would be reduced to thrice weekly effective Oct 28.

 

"The thrice weekly KL-Kunming frequency will be temporarily reduced to twice weekly frequency during the lean period from Jan 4, 2008 to Feb 29," it said.

 

MAS said it would downsize its KL-Surabaya flights from nine times weekly to once daily flights from Oct 28.

 

"Effective the same day, the twice-weekly KL-Cebu return flights will be withdrawn but the twice weekly KL-Kota Kinabalu-Cebu return flights will be retained," it said.

 

Based on the findings of its route profitability exercise, MAS said it would suspend its four-time weekly KL-Nagoya-KL service and its three times weekly KL-Zurich-KL effective Jan 5, 2008 and Jan 24, 2008 respectively.

 

-- BERNAMA

 

http://www.bernama.com.my/bernama/v3/news_lite.php?id=285522

[Kevin Teh 0]

no more Heliconia to Zurich!

[Seth K 3]

Wow, many shocking news! 332 to 330 is not upgrading, at least from pax point of view <_ they lost to their competitor on zrh route always thought that the flight full...........>

Edited September 17, 2007 by Seth K

[Walter Sim 1]

Ayamak, no more to Zurich...

 

Hope they also pay some attention to their inflight product...its getting bad lately

[Imran K. 0]

Hmm...STILL no Triple 7 to Dubai...

 

How la to compete....parrraaaaaaaa....

[Pieter C. 5]

Ayamak, no more to Zurich...

 

Think TK will be a very sad person: no more spotter trips to Kloten

[Izanee 0]

holy moly...didn't ever think ZRH was not profitable. that's very sad indeed as i still remember the excitement over their inaugural flight in 1989!

what a shame. so MH is adding one or two frequencies here and there while cutting back others AND stopping flights elsewhere.

NGO is out too....not good news for KUL's connectivity.

 

looks like all KUL will become is a LCC hub.

 

 

[Walter Sim 1]

First Vienna is out, now Zurich........

[Cheng Kit 0]

The solution to Zurich is, AirAsia would have to fly from KUL-ZRH-KUL route once they get the longer haul aircraft or Swiss Airlines flying from ZRH-BKK-KUL-BKK ZRH. The Nagoya one is AirAsia would have to fly there.

Edited September 18, 2007 by Cheng Kit

[Azuddin 1]

Now MH is putting some route off the service, hopefully this action won't take the whole airline out off service.

[Keith T 2]

Now MH is putting some route off the service, hopefully this action won't take the whole airline out off service.

 

It's actually similar to CX's existing strategy. CX seems to have stopped starting new destinations, and is now concentrating on boosting frequencies to existing (high yield/profitable) destinations.

[Guest Michael]

Good news by the sound of it for MAS hey people.

[Radzi 2]

Want to hear a conspiracy theory?

 

There is a Darth Sideous / Palpatine high in the MAS hierachy. With his (or their) advise MAS will be cutting more destinations, only to be picked up by AirAsia X. In the long run AirAsia X will prosper while MAS will bleed and die.

 

Scary.

[Rozhan 0]

Sometimes conspiracy theories / rumours can be soo true.

 

And some thought the 'new' management is so divine.

[Imran K. 0]

AirAsia X will prosper while MAS will bleed and die.

 

Scary.

 

Etihad + Emirates are just WAITING for the exodus....dipersilakan captain...

[Izanee 0]

radzi - that is indeed a scary thought. it is so shocking that I can actually believe it. I've seen how the government suddenly became very receptive towards TF's half assed ideas - i'm not surprised really if that is the case. Look at the RAS scandal.

 

I don't want MH to lose out to AK at all. TF is lying when he talked about operating niche markets that MH won't fly to.

So far he's keen on australia, china, UK and i think i read somewhere Hong Kong, south korea and japan. hmmm...

it doesn't seem so strange now.

 

you've got me thinking radzi!

[Pieter C. 5]

First Vienna is out, now Zurich........

 

Both are Star Alliance hubs.............................do I have to say more ?

 

Seems to me, MH is concentrating more and more on ST hubs, like Amsterdam, Paris, or Rome

 

Air Asia X to ZRH ? Don't think so, ZRH airport charges are way too high...To serve the Swiss market, they should concentrate on the tri-country airport of Basle-Muhlhouse-Freiburg

[Desmond Loo 0]

First Vienna is out, now Zurich........

 

MAS pulling out of yet more destinations in Europe. Sad to see.

 

[Seth K 3]

Since ARN is not a really profit making route, could it be reroute to LHR, I know MH dropped several flights to LHR, and they won't hv trouble getting a gate there.

[Kenneth T 0]

I just cant believe what im reading here, not sure it's a good news or otherwise. Well, the KL/IST will be operated via DXB probably due to expiry lease of the A330-200s. That will also say that flying hours will be longer by then, which is certainly not a good news for travellers.

[Alex 0]

But Zurich never really made money for MAS. 3x weekly is not enough to compete with TG or SQ who both have pretty much a daily presence. It is a wise move by MAS to cut unprofitable routes so that it can really focus on the more profitable routes, like AMS, CDG and even LHR. I mean, take QF for example, they cut CDG because they couldn't get daily slots and I believe they cut FCO because it just wasn't profitable. I mean, they are back at Rome now, albeit with a CX codeshare but QF make profit, doing what MAS are wanting to do, fly into a port and use a codeshare partner to reach more destinations.

 

MAS turning bigger and better profits is possible... I just think they are heading towards a similar idea that QF is using. Hub and Spoke. QF hub out of LAX and LHR and reach a LOT of destinations. I can see MAS doing something similar, with AMS and CDG, potentially even with EWR (on CO). With that idea in mind, I can see IST, ARN and even FRA getting the chop if they want to cut more routes, leaving CDG, FCO, AMS and LHR. The first 3 are Skyteam hubs and potentially with their entry, could ensure it's survival. LHR is more there because of the Flagship status. That and also the fact that MH have a slice of the Kangaroo Route, why would they risk losing it?

 

Don't get me wrong, MAS is a great airline to fly (I have flown them on a number of occassions), but with a fleet of what 11x 744's, 17x 772's, 14x A330s there's only so much it can do. TG have what 9x A340's, 18x 744's, 17x 777's and 12x A330s. SQ have a fleet of over 65x 777s, 20x 744s, 5x A340s. CX has 22x 744s, 28x A330s, 15x A340s and a fleet of new 77W's coming in. Fleetwise, there's no way MAS could compete with their neighbours if it did destinations 2x or 3x weekly. Hence, it's wise to cut and run before the bleeding becomes too bad.

 

My two cents, but I can see what MAS are doing and I applaude them for doing it. As for Air Asia into Zurich... Maybe in the distant future. Not just now.

 

Alex.

[Izanee 0]

so pieter - do you think that there is a proper plan in place for MH to join Sky Team? not just some random route chopping exercise?

 

 

[Pieter C. 5]

Alex,

 

Couldn't agree more: well said !!!

 

Izanee,

 

Behind the scenes, I'm positive there are constructive talks between ST and MH already...it can take quite a while, though, before a new 'member' will be allowed to join, just look at CZ...lot's of issues have to be streamlined

[KK Lee 5]

I just think they are heading towards a similar idea that QF is using. Hub and Spoke. QF hub out of LAX and LHR and reach a LOT of destinations. I can see MAS doing something similar, with AMS and CDG, potentially even with EWR (on CO). With that idea in mind, I can see IST, ARN and even FRA getting the chop if they want to cut more routes, leaving CDG, FCO, AMS and LHR. The first 3 are Skyteam hubs and potentially with their entry, could ensure it's survival. LHR is more there because of the Flagship status. That and also the fact that MH have a slice of the Kangaroo Route, why would they risk losing it?

 

Don't get me wrong, MAS is a great airline to fly (I have flown them on a number of occassions), but with a fleet of what 11x 744's, 17x 772's, 14x A330s there's only so much it can do. TG have what 9x A340's, 18x 744's, 17x 777's and 12x A330s. SQ have a fleet of over 65x 777s, 20x 744s, 5x A340s. CX has 22x 744s, 28x A330s, 15x A340s and a fleet of new 77W's coming in. Fleetwise, there's no way MAS could compete with their neighbours if it did destinations 2x or 3x weekly. Hence, it's wise to cut and run before the bleeding becomes too bad.

 

Hub and spokes is an idea business model for MH. However, how many code shares does MH operate with their partners from existing EU and USA destinations?

 

Until MH joining an Alliance, load and yield between KUL vv Aussie routes will be reduced from winter season.

 

MH has excess of 744, believe 1/3 of them is idling at anyone time.

 

[Keith T 2]

Izanee,

 

Behind the scenes, I'm positive there are constructive talks between ST and MH already...it can take quite a while, though, before a new 'member' will be allowed to join, just look at CZ...lot's of issues have to be streamlined

 

The long time a member-elect takes to become a full member usually has something to do with the in-house computers. That alone costs a lot of money.

Then staff have to be trained to use the new systems, sell new products etc etc.

 

MH isn't even a member-elect yet though. I suspect there's a lot of wrangling over the fine print behind the scenes with AF. Like BA/LX and oneworld in 2003-5. In the end LX decided that the heavyhanded conditions BA tried to impose wasn't worth it and exited the whole oneworld/BA agreement. I'm not surprised if something similar is happening between MH and AF (given how pro-MH KL seems to be, there must be something going on to stall the process thus far).

Edited September 24, 2007 by Keith T