MH to raise fuel surcharges "substantially" soon

[Mushrif A 3]

MH has been known to quietly raise fuel surcharges without warning or even a decent announcement to teh travelling public.

 

 

"MAS to raise fuel surcharges in 2 weeks

MALAYSIAN Airline System Bhd, the national carrier, said it will increase fuel surcharges in two weeks to help offset surging fuel costs.

 

Fuel surcharges will be raised “substantially” on a route by route basis, the Subang, Malaysia-based airline said in an e-mailed statement.

 

The company also said it expects other carriers to increase fuel surcharges “big time”. - Bloomberg

[Lim ML 0]

MH has been known to quietly raise fuel surcharges without warning or even a decent announcement to the travelling public.

 

 

Very much doubt they wanna commit Hara Kiri! Or Kanan, for that matter!

[Rozhan 0]

Increase it by too much and some travelling public may opt for other carriers. Indeed as Mushrif said, MAS has been increasing such surcharges many times quietely in the past months. I used to track their fares regularly but stopped doing so since I ceased flying MAS from this year.

 

AK has also increased theirs, but very marginally. Recently fuel surcharge for flights within peninsular increased by a mere RM3, and to Sabah / Sarawak by RM10 IIRC.

[EddieDaniel 0]

MH has been known to quietly raise fuel surcharges without warning or even a decent announcement to teh travelling public.

 

 

What is the different compared to what the current government did? Announcing no fuel increase until August a day before they decide to raise it?

[Mushrif A 3]

What is the different compared to what the current government did? Announcing no fuel increase until August a day before they decide to raise it?

 

Key difference is MH did not say they will not do it.

[V Wong 0]

There was already some surcharge increase within the past one month. Did mock booking for KUL-FRA last month and last week. Same September travel dates, same base fare of RM1325 both ways on both occasions, but there was an increase in the total fare of more than RM200 last week.... "serang hendap". So it is not entirely true that MH announces surcharge increase everytime it is raised. So I landed up buying KLM instead, still no surcharge increase so far. Moreover, going to Berlin, a route not covered by MH's hub and spoke concept.

[KC Sim 2]

Watch the LHR-KUL-LHR fuel surcharge closely when it rises.

 

KC

[BC Tam 2]

Watch the LHR-KUL-LHR fuel surcharge closely when it rises.

Yes, good advise there. Recall Datuk IJ's chilling words recently about being 'dominant' carrier on the route !

[Jonathan Kong 0]

From Bernama

 

PETALING JAYA, June 12 (Bernama) -- Malaysia Airlines (MAS) is set to raise its fuel surcharge again, managing director and chief executive officer Datuk Idris Jala said Thursday.

 

"The increase will be on a route-by-route basis and will happen within two weeks. I can only say at this time that it will be high and in line with what our competitors are imposing," he said.

 

"Over the past year, we have increased our fuel surcharge five times in the light of the ever increasing fuel prices," he told reporters after the launch of MAS' Second Quality Assurance Conference and Business Assurance and Control Assessment (BACA) initiative here.

 

Idris said the entire airline industry was going through a crisis as result of rising fuel prices.

 

"If the oil prices stay at the current levels, a lot of airline companies could go bankrupt," he said.

 

On BACA, Idris said the initiative was aimed at strengthening the airline by introducing the best practices in corporate governance, adding that it is expected to be in place within the next two years as part of MAS' business transformation plan.

 

"We are implementing it in stages. It is something new for all of us. We will start at the headquarters first," he said.

 

MAS chairman Tan Sri Dr Munir Majib said with BACA, the airline aimed to also strengthen its risk control culture.

 

"BACA calls for us to consistently assess our internal controls. We need to move from a traditional approach where auditors evaluate the effectiveness of controls to a point where we own, manage and assess it ourselves," he said.

 

"We must ensure that these controls meet the most rigorous regulatory requirements," he added.

 

 

Let's see what how much do they increase the surcharge in the coming two weeks

[Kenneth T 0]

Well, that will certainly affect the travelling industry again.

[KC Sim 2]

Initially, there was the Business Turnaround Plan . . . BTP. Then came BTP 2. Now BACA . . . I recall reading how comprehensively the original BTP was supposed to scrutinise every area of the airline's management and operation to weed out all that is not right and not profitable.

 

Are we seeing one sexy acronym after another - each one to take effect in two years or so - just to buy time now that there is no much other assets to sell off?

 

Some years back, one of MH's problem was poor fuel hedging policy. Has this been corrected? Does anyone know what percentage of its fuel requirement is hedged?

 

KC Sim

[Mushrif A 3]

Difficult times are back!

 

MAS Says Tough To Achieve RM400 Million Net Profit

 

 

By Umi Hani Sharani

 

KUALA LUMPUR, June 15 (Bernama) -- Malaysia Airline System Bhd (MAS) says it will be tough to achieve even its lower end of net profit target of RM400 million for its financial year ending Dec 31, 2008.

 

"Obviously it is going to be tough. It is going to be a struggle," its chairman, Tan Sri Mohamed Munir Abdul Majid, said on the sidelines of the World Economic Forum here Sunday.

 

He said MAS, among others, would be cutting routes and increasing fuel surcharge in line with the market on route-by-route basis in efforts to cope with rising fuel costs.

 

"We have not come to the stage," he said, when asked if MAS would ground its aircraft as some of the airline companies had done.

 

Asked on its plan to purchase 55 wide-bodied aircraft, he said, MAS would revisit that plan.

 

"(With the current scenario) some airlines may not be taking the delivery of orders or cancel their orders (and MAS can take the opportunity)," he said.

 

He said MAS was monitoring the airline industry for such an opportunity.

 

-- BERNAMA

 

 

[H Azmal 0]

Munir Abdul Majid still there? I thought the guy was gone a long time ago!

[jani 0]

I like that last quote. Means that they will hopefully be looking to take advantage of some early slots being available.

[Ashmil Abd Ghani 0]

it sound not fair to passenger who using MAS frequently. with vehicle fuel price rocking and now MAS say they will increase the surcharge..huhuhu...this news will make people at AirAsia smile more wider and last statement by CEO of AK, they will not increase any surcharge instead offer more new regional route..if it will implement soon, i believe Malaysian will chose AK flight for domestic and regional flightt even MAS offer "EVERY DAY LOW FARE" + "5 STAR AIRLINE" but it not sound nice for our pocket money <_ ..so save your pocket money or fly with star airline light mealbox... src="%7B___base_url___%7D/uploads/emoticons/default_pardon.gif" alt=":pardon:">

 

"Rakyat" just can't accept any price increase either service or goods after the government announce oil price increase...small and medium income group feel the burden...as cooperate sector, i believe they able to absorb any price increase for short while... oil price will increase for sure but not same time most price increase,it make rakyat hurt....

[Kenneth T 0]

Dato IJ will do his very best to achieve as close as the targeted profit of RM400m, thus i guess surcharge increase is just part of the contributing factor. MH lose will aways be the gain of someone.

[Rozhan 0]

Munir Abdul Majid still there? I thought the guy was gone a long time ago!

 

How could he NOT be there still

Edited June 15, 2008 by Rozhan

[H Azmal 0]

LOL - I thought the three MYR 1.5m paintings were enough to get him the sack?

 

Oh well.

Edited June 15, 2008 by H Azmal