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Robin

MAS ready to spend RM30 bln on new fleet

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You'll hear it from the press soon. Cancellation will cost MH significant losses. Buying it makes not much business sense ( in the short term ).

 

How significant are we talking about here? Won't the compensation for delays partially make up for it?

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Have you had too much to drink? Why does MH need 720 more aircraft, just because the rest of the world will take in 800 new aircraft over two years?

 

If you read my post, it will tell you that the 800 aircraft order is "hard to believe", so don't go ahead telling me that I have had too much to drink. You are much like a journalist, only quoting me on what you can criticise and not looking at the whole picture. :blink: As well...I did refer to your post afterwards.

 

On the other hand, however unlikely, I think it would be fantastic is MAS can order 800 aircraft. $30bil is a deadset giveaway though that the order is around 80 aircraft.

 

Look, either way, I am happy that MAS is looking to expand their fleet. It has been long awaited. :good:

 

As I stated in other posts, I am a big fan of the 772 and I hope that their order will include some of these wonderful aircraft ^_^

 

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In TV3's news, I saw IJ in front of a slide screen during a press briefing showing something like 400 planes converging to one point, and I believe the 400 planes are what MH's competitors are going to have in the next few years. AK is going to have 100 plus of those planes from all its subsidiaries. Add other country's carriers and MH knows that it is being 'attacked' from all directions.

Edited by Rozhan

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Is it possible for MH to buy this... n then sold it back after a year or so? or lease it to others, AKX for instance?

So they'll get the compensation and money from lease...

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Is there a clause in the contract between PMB and MAS that states that MAS MUST take on the A380???? Can't PMB lease them to someone else? but still own them and reap the benefits out of them - say like to a carrier such as Qantas, SIA or Emirates????? Wouldn't this work out better in the long haul - MAS doesn't need them, but the carriers that do need them lease from PMB and hey presto, PMB makes some money, Malaysia owns some A380s, Malaysia potentially uses this experience to expand it's participation in aircraft leasing.Is there a clause in the contract between PMB and MAS that states that MAS MUST take on the A380???? Can't PMB lease them to someone else? but still own them and reap the benefits out of them - say like to a carrier such as Qantas, SIA or Emirates????? Wouldn't this work out better in the long haul - MAS doesn't need them, but the carriers that do need them lease from PMB and hey presto, PMB makes some money, Malaysia owns some A380s, Malaysia potentially uses this experience to expand it's participation in aircraft leasing.

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There are many embedded issues that accompanies aircraft purchase deals whenever MH buys airplanes. This fact makes it difficult to just merely cancel orders. The decison making process for purchase is not straightforward and there are times MH management cannot really exercise absolute power as it alwys involves a bigger picture.

 

Being a National airline the needs of the nation comes first, and MH only plays a supporting role in the game. MH management generally knows what's best for MH, and the powers that be also knows what's best for the country as a whole.

 

In the case of the A380, lots are at stake as such cancellation and/or compensation is only one part of a very big picture.

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As much as I wanted to be onboard MH's first A380 commercial flight, I really doubt their economical benefit in MH's operation.

 

I am hoping MH (through PMB) to cancel the 6 A380 orders but revert to A350 aircrafts instead, as I suggested in my previous reply.

 

Currently, there are only two (2) destinations which I think deserving the A380, LHR and AMS. SYD would probably be getting it as well, but only because to challenge flight SQ 220. Having said that, I think it is better for MH to fly:

  • 3 daily non stop flights to LHR on B773ER instead of 1 A380 and 1 B773ER daily.
  • 2 daily non stop flights to AMS on B773ER instead of 1 A380 daily.
  • 2 daily non stop flights to SYD on B773ER instead of 1 A380 and 1 B773ER (which will continue to BNE) daily.
In other word, FREQUENCY. The above assumption is made having in mind that all current B744s will be replaced by B773ER and it is only my speculation.

 

However, looking at the facilities in KUL, which scream so eagerly to accept A380s, I think the economical benefit aspect of purchasing the A380s will be (purposely) overlooked.

 

Agreed! There are many airlines operating A380 in small numbers, but does it make economical sense? Isn't it rather expensive just to maintain a handful of A380, training all the engineers, crews, and pilots? SQ seems to benefit from low operating cost due to large number of 777. If MAS can have more frequency, it may be able to attract more business travelers to fill their premium cabins.

 

By the way, anyone knows if PMB actually makes money? Sometimes, I'm just wondering if PMB leased aircrafts at a loss. So MH can reduce its expenses and be profitable, as MH is the one who face public scrutiny.

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Believe the MH new business model is bends toward American airlines, bare cabin service and everything on a low. While MH competitors are upgrading their services, and MH overhead and controllable cost is known to be high. Wonder whether this new business model will work for MH.

 

:drinks:

 

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There are many embedded issues that accompanies aircraft purchase deals whenever MH buys airplanes. This fact makes it difficult to just merely cancel orders. The decison making process for purchase is not straightforward and there are times MH management cannot really exercise absolute power as it alwys involves a bigger picture.

 

Being a National airline the needs of the nation comes first, and MH only plays a supporting role in the game. MH management generally knows what's best for MH, and the powers that be also knows what's best for the country as a whole.

 

In the case of the A380, lots are at stake as such cancellation and/or compensation is only one part of a very big picture.

 

But in this case, PMB is the purchaser. PMB may not be able to cancel the 380s so easily but it is none of Airbus' business if PMB were to lease them to other airlines (Think EK, CX etc). PMB may have bought them with the objective of MH leasing them, but PMB and MH are like left-and-right-pockets of common shareholders.

 

PMB, after all these years, is still not a pure aircraft leasing business like SALE (now Chinese owned), or even Kuwait's ALAFCO. It was set up purely to ease debt pressures at MH level.

 

Remember how Petronas was roped in as aircraft lessor merely to frustrate the engine contract with RR for the sole 747-3H6, to satisfy political disagreements with the UK then? Consequently, MH operated two different engine types for a 747 fleet that had a grand total of 3 aircraft.

 

 

 

 

 

 

 

 

 

 

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I dont think they should buy new plane, with that budget, they must increase their service quality....

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If you read my post, it will tell you that the 800 aircraft order is "hard to believe", so don't go ahead telling me that I have had too much to drink. You are much like a journalist, only quoting me on what you can criticise and not looking at the whole picture. :blink: As well...I did refer to your post afterwards. On the other hand, however unlikely, I think it would be fantastic is MAS can order 800 aircraft. $30bil is a deadset giveaway though that the order is around 80 aircraft. Look, either way, I am happy that MAS is looking to expand their fleet. It has been long awaited. :good: As I stated in other posts, I am a big fan of the 772 and I hope that their order will include some of these wonderful aircraft ^_^
I still think that you (a) had too much to drink; (B) were on drugs; or © need to attend a language refresher class.If you refer to post #1 and read again what's posted there (and I hope you can understand what you are reading), MH/ IJ was refering to the 400+400 new aircraft that will come online over next 2 years and these aircraft will be operated by OTHER airlines (i.e MH's competitors). No where in that article in post #1 that MH/ IJ indicate that MH will order 800 aircraft.Stating that MH ordering 800 aircraft is "hard to believe" or "...[...] however unlikely, [...] would be fantastic" would be rebuting your own self-created fantasy.
And so i did read the above topics thank you very much.I am of course replying on the assumption that what the original article said was true.
The original article was true, but clearly your interpretation was not.

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Guest Michael

I feel happy to be coming back to K.L. in March or April but I am coming business class so I might be coming on a new plane with new interiors and features.

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News from Langkawi and Airbus is speading that MH will confirm the order of the 6 A380 within '30-60 days' with a possible additional frames!

 

Now, that's huge!

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Guest Michael

I am not sure about that Idris has surprises to spring I am sure of that.

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Tajuddin Ramli sprung a few surprises during his time helming MH too I recall. Ah well, at the very least be comforted that the MAS boom/bust cycle is still alive and kicking !

 

(can't help but wonder what the current commission on sales of 30B worth of aircraft works out to nowadays ?) :)

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Guest Michael

I am glad to see the airline is actually making profits now on every route just about.

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wat happen to aircraft order announcements due for LIMA?? postponed again?? (not talking about ATRs)

 

 

It was never due to be announced at LIMA. Those were speculations. MAS has said the orders will be announced next year.

Edited by Sanjay Thaker

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Guest Michael

Hello people I feel that MAS can be a Premier Value Airline with a fleet renewal and new products and operating on a low cost and it can maintain its 5 star status, what does everybody else think??

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