MAS A380 - Fleet to be Retained

[Johan Z 0]

Why a mistake?

 

 

There are a couple of threads on A.net questioning how MH could fill their A380 and use them profitably. A380 sounds too ambitious for an airline like MH. There have been a couple of times MH doubt themselve, if they really need A380.

Edited June 21, 2010 by Johan Z

[jani 0]

All negotiation tactics, I would say. Doing something like this would make Airbus give them deals for future aircraft, deals that Boeing must also match in some sort of way.

 

Do you expect them to say "Oh, we are happy with the delays. No problem."?

[flee 5]

All negotiation tactics, I would say. Doing something like this would make Airbus give them deals for future aircraft, deals that Boeing must also match in some sort of way.

 

Do you expect them to say "Oh, we are happy with the delays. No problem."?

Yes, I agree. Besides why are people so confident that between now and 2012, the aviation industry traffic will not recover? Besides, it is good that the MH management learnt how to fill the planes. Just look at SQ, their A380 flights are in high demand and their cheapest discount tickets are not available on those flights.

[Mohd Azizul Ramli 2]

Along with this 'shocking' A380 probable cancellation news, the MH Rumour Department also leaks the followings:

• B77W is being considered if A380 is cancelled, but it may be a candidate even if A380 is not cancelled (I predict it is now highly likely that MH will acquire some B77Ws).
  
• B748 is NOT being considered.
  
• MH will consider possible B77W order together with B787, A350 as a whole.
  
• MH will look at merits of A350 but "not necessarily as part of A380 (cancellation) package" - guess he means that they will not be pressured to take A350 just because they're cancelling the A380.
  
• Planning "partnership" (likely codeshares) with RJ and WY (Expected! KUL-AMM and KUL-MCT are in store for us).
  
• Kiosk check-in to be introduced "very soon" at KCH, BKI!
  

I must say it was a very sensational AGM. Congrats MH!

[jani 0]

Are those info mainly based from what was discussed during their AGM?

 

Anyway, no reason to doubt you. You have always been spot-on all the time. Good job Azizul!

 

 

By the way, here is another quote from Tengku Azmil on Twitter:

 

"Actually, what I said was that we were discussing the delays with Airbus. The reporter asked if MAS would consider cancelling the A380s due to the long delays. I said we have not ruled anything out at this stage. Subtle diff, but I suppose reporters prefer the more dramatic headline."

 

 

 

Man, this dude is cool on Twitter! I actually hope he doesn't get too many followers otherwise he wouldn't reply all these questions

Edited June 21, 2010 by jani

[Ja Singh 2]

If MH never operated 747's then I would agree that A380 is too large for them. A380 is only 20 percent bigger than 747 in terms of pax numbers and please remember that MH operated 17 747's during the past. So to all those who think its too big for MH, guess youre wrong.

 

The A380 has its own large following from the flying public and MH one would nbe no exception. Just advetise,A380 services from Australia to Europe with MH hospitality and if doesnt fill up the cabins I would be surprised.

 

Intriduction of Premium class is a big plus for MH as it differentiates MH procuct from SQ and I can bet my bottom dollat that that fill up pretty easily.Many people just want a comfortable seat, minus the louge use and bussiness class service. Just a nice meal one one tray will do and of course hot towels should be reintroduced on all international services.

 

Config wise, I hope MH will opt for Fist class on Main deck,Bussiness class and premium eco on uppperdeck.

 

I hope Airbus keeps to their promise this time and does not push MH delivery slots further,they have gone one step too far in pushing MH dates while delivering to other like EK and SQ and QF.

Edited June 21, 2010 by jadivindra

[BC Tam 2]

..... please remember that MH operated 17 747's during the past. So to all those who think its too big for MH, guess youre wrong.

Remember too the financial performance during the (not too distant) past

Unless one chooses to revert back to blaming everything bad on "social responsibilities" and "escalating fuel costs" etc

[flee 5]

I hope Airbus keeps to their promise this time and does not push MH delivery slots further,they have gone one step too far in pushing MH dates while delivering to other like EK and SQ and QF.

I think they have already suffered the delays as Airbus failed to meet delivery targets in 2009. I remember one of SQ's A380 that was supposed to be delivered last year was only received this year.

 

However, I do think that because MH has never made noise about the delays, Airbus did take some liberties. Anyway, lets wait and see what happens.

 

Meanwhile EK is trying to carve out a competitive advantage (while MH sees it as a burden) with the A380. With so many A380s on their fleet, I am sure that they are already getting economies of scale in terms of flying and maintenance costs.

 

The EK CEO is highly positive about this plane: “When the going gets good again, if we haven’t placed our orders and bagged the positions for the aircraft that we want to do the job then we’ll be behind the curve when everybody else is doing it.”

 

EK is looking for even more A380s beyond the 90 it has ordered: “The mapping of the airline actually sees a lot more A380s needed than even that number, and I know that’s difficult for a lot of people to stomach. Whenever we fly the aircraft it fills up,” he says.

 

Makes me wonder why MH is so negative about the A380...

[KK Lee 5]

On any route, if 744 is profitable, so will A380.

 

If A380 is too big for MH means MH shouldn’t have bought 744 at the first place.

 

[Sanjay Thaker 0]

Along with this 'shocking' A380 probable cancellation news, the MH Rumour Department also leaks the followings:

• B77W is being considered if A380 is cancelled, but it may be a candidate even if A380 is not cancelled (I predict it is now highly likely that MH will acquire some B77Ws).
  
• B748 is NOT being considered.
  
• MH will consider possible B77W order together with B787, A350 as a whole.
  
• MH will look at merits of A350 but "not necessarily as part of A380 (cancellation) package" - guess he means that they will not be pressured to take A350 just because they're cancelling the A380.
  
• Planning "partnership" (likely codeshares) with RJ and WY (Expected! KUL-AMM and KUL-MCT are in store for us).
  
• Kiosk check-in to be introduced "very soon" at KCH, BKI!
  

I must say it was a very sensational AGM. Congrats MH!

 

 

Add to the above the introduction of :

 

Ipad check in kiosks at KUL (MH customers will be amongst the first in the world to be able to check in using an Ipad) AND

 

Webchat, SMS and more channels of customer service to enhance the call center

 

 

Looks like its going to be a busy couple of years ahead for MH.

[flee 5]

National carrier unhappy with Airbus’ delivery delay, considers other aircraft

 

PETALING JAYA: Malaysia Airlines (MAS), which has ordered six A380s from Airbus SAS, may cancel its order if the manufacturer continues to delay its delivery.

 

“We are not happy with the delay and will not rule out anything at this stage,” managing director and chief executive officer Tengku Datuk Azmil Zahruddin said at a briefing after the company AGM and the launch of its Everyday Value Fares campaign yesterday.

 

He said it was “very frustrating” as the carrier had made plans on the usage of the planes.

 

“We have also made plans to let go of certain aircraft before the (scheduled) delivery of the A380s,” he said.

 

“The board’s position is quite clear. We cannot tolerate another postponement,” MAS chairman Tan Sri Dr Munir Majid said.

 

The Toulouse-based Airbus had earlier compensated RM329mil to MAS for the delay.

 

Tengku Azmil said the airline was currently in discussion with Airbus on further compensation.

 

“We want to make money from operation and the target is RM100mil to RM300mil for operating profit for the current financial year. We want to achieve or exceed that,” he said, adding that it was not right to say that MAS needed the compensation to make money.

 

Airbus was initially scheduled to start delivering the A380s in January 2007 but it was postponed to January 2011 following delay in the French aircraft maker’s programme. It was again deferred to August 2011. MAS is now expected to receive the first of six A380s in the first half of 2012.

 

Based on the 2008 catalogue price, an A380 costs between US$317mil and US$337.5mil.

 

Full report from The Star: http://biz.thestar.com.my/news/story.asp?file=/2010/6/22/business/6515648&sec=business

[KK Lee 5]

National carrier unhappy with Airbus’ delivery delay, considers other aircraft

 

PETALING JAYA: Malaysia Airlines (MAS), which has ordered six A380s from Airbus SAS, may cancel its order if the manufacturer continues to delay its delivery.

 

MH built A380 hanger in 2007, commissioned simulator recently and to cancel order when A380 (MSN0078) is in production?

[Radzi 2]

MH built A380 hanger in 2007, commissioned simulator recently and to cancel order when A380 (MSN0078) is in production?

 

Yup, I'm confused too. Guess it is too late for cancellation now.

[jani 0]

Check first post of this page, he already said that the reporter sensationalized his comments.. He did not really mention anything about cancelling.

[Raj 0]

MH built A380 hanger in 2007, commissioned simulator recently and to cancel order when A380 (MSN0078) is in production?

 

I'm sure it's more of a PR stunt or possibly to threaten/scare airbus a tad bit? After all, this could possibly lead to more compensation or perhaps better deals for the recently ordered A330 or future A350 orders if they decided to get it.

[Johan Z 0]

If remember correctly, they also have appointed a firm to design the interior for A380. MH need to be like EK sometimes, loud and proud.

[leon t 0]

one cannot compare SQ filling up their A380s seats at even premium prices - bec MH doesnt have a good hub at KLIA and whether the economy is getting better or not - MH cant even fill up its 3 daily 744 flghts to LHR before the economic crash and have to reduce to 2 daily flights and even that its 2nd LHR flight is never full - and MH have even cut its flights on its US bound sector and dropping Newark flight altogether. Dont think MH can even utitilise its A380 effiiciency to SYD and esp the "threat" of AK/D7 flying there.

Its still more cost effective for MH to cancel its A380s now than to have just 6 of them flying half empty unless heavily discounted which then also have no higher yields - as also MH will save on maintenance for these big planes and manpower etc. Even profitable airlines like CX still would not order the A380 although believe they can use the planes on some of their routes ie HKG to LHR/US/Aussie

[KK Lee 5]

SQ, EK, EY, QF, BA, CX, VS, etc have proved the demand on Kangaroo route justify multiple daily A380.

 

With proper products offering and competitive pricing, MH should deploy A380 on double daily to LHR.

 

[Ruiz Razy 1]

Perhaps it's a business stategy , to add some pressure to the manufacturer that MH is not a small monkey business and MH is a serious player!;

 

Maybe get that manufacturer to give more discounts for the other aircraft ordered.

[KK Lee 5]

Perhaps it's a business stategy , to add some pressure to the manufacturer that MH is not a small monkey business and MH is a serious player!;

 

Maybe get that manufacturer to give more discounts for the other aircraft ordered.

 

[Johan Z 0]

one cannot compare SQ filling up their A380s seats at even premium prices - bec MH doesnt have a good hub at KLIA and whether the economy is getting better or not - MH cant even fill up its 3 daily 744 flghts to LHR before the economic crash and have to reduce to 2 daily flights and even that its 2nd LHR flight is never full - and MH have even cut its flights on its US bound sector and dropping Newark flight altogether. Dont think MH can even utitilise its A380 effiiciency to SYD and esp the "threat" of AK/D7 flying there.

Its still more cost effective for MH to cancel its A380s now than to have just 6 of them flying half empty unless heavily discounted which then also have no higher yields - as also MH will save on maintenance for these big planes and manpower etc. Even profitable airlines like CX still would not order the A380 although believe they can use the planes on some of their routes ie HKG to LHR/US/Aussie

 

I agree with you. Only time will tell.

[flee 5]

If MH is so nervous about not being able to fill the A380 on the kangaroo route, perhaps it is true that D7 has already dented their market share with their KUL-STN services. That may explain why they want protection from D7 on to KUL-SYD route. I guess that without a cabin refresh, MH's B744 product is uncompetitive and pax prefer to save some money by flying D7.

[jani 0]

Slightly off topic, but did the Facebook/Twitter shoutout thread get deleted? Where did it go?

[Mohd Azizul Ramli 2]

http://www.malaysianwings.net/forum/index.php?showtopic=12631

[flee 5]

http://www.malaysianwings.net/forum/index.php?showtopic=12631&st=160