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MAS to terminate routes that causes losses

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MAS to terminate routes that cause losses
By NG CHENG YEE in Dewan Rakyat


KUALA LUMPUR: In stages the Malaysia Airlines (MAS) will have to terminate its operations to route destinations that cause losses to the company, said Transport Minister Datuk Ong Tee Keat.

He said the route destinations were Kuala Lumpur to Manchester, Vienna, Zurich, Fukuoka, Nagoya, Ahmedabad, Kolkata, Pontianak, Xian, Chengdu and Kaherah, Kuching to Perth and Sydney, Langkawi to London, and Penang to London. However, he could not give the value of losses suffered by MAS as it was the rule by Bursa Malaysia that prohibited it to release such information to the public.

Ong was replying a question by Fong Po Kuan (DAP-Batu Gajah) on the route destinations and whether there was any plan to allow AirAsia to take over these destinations.

"It will have to be studied and discussed by various parties, including the two airlines involved," he said.

On the flight delays raised by Datuk Mohamed Aziz (BN-Sri Gading), Ong said it would be welcomed by the public if airline companies were willing to compensate customers for such problems.

"AirAsia has started such a scheme but MAS is yet to implement the same system," he said, adding that flight delays were due to technical problems or management by airline companies.


I thought those destinations axed already :help: and MAS did compensate passengers when delays occured, not in terms of money but food vouchers, or am I missing something here?

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I thought those destinations axed already :help: and MAS did compensate passengers when delays occured, not in terms of money but food vouchers, or am I missing something here?

 

 

Politicians....Dewan Rakyat...they'll just never ever get their facts right especially when it comes to matters about airlines..

 

Exactly what I was thinking. Just cakap sesedap mulut saja :angry:

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Ong was replying a question by Fong Po Kuan (DAP-Batu Gajah) on the route destinations and whether there was any plan to allow AirAsia to take over these destinations. "It will have to be studied and discussed by various parties, including the two airlines involved," he said.

I never thought the Batu Gajah representative can ask something which I regard as stupid. AirAsia is not a government owned entity like MH, so there's no way that the government can interfere in their business the way they interfered MH. AK will never venture into any routes that won't result in any profit. There's no such thing as AK will take over MH's abandoned routes without any business analysis to back it up.

 

I thought those destinations axed already and MAS did compensate passengers when delays occured, not in terms of money but food vouchers, or am I missing something here?

Yes, all those destinations were axed during the first and second round of BTPs back in 2006. I think the Transport Minister just reinstated back what MH had done in regard to this matter and (maybe) hinting that MH is going to axe more destinations in view of the rising fuel prices.

 

On the second matter, I think they are referring to the MYR 200 cash voucher that AK is offering to its passengers whose flights are delayed for more than 3 hours due to specific reasons, which MH clearly has yet to offer. It seems that those MPs want MH and AK to be identical in every sense.

 

Since the axe topic has been brought up, let us play tebak-tebakan (guessing game) on which routes that MH is going to axe. Personally, I think those that are high in the chopping block are:

 

1. Buenos Aires (EZE) - The most questionable route in MH's network - something that even SQ is questioning about. A lot of A.Netters said the only reason the route is being sustain is because to cater for Tun Dr. Mahathir Mohamad who has a horse ranch in the Argentinian capital. But I am more inclined to believe that is it more of a national/Malaysia prestige as a leading developing country that heavily promotes South-South (G15) economic ties (which happened to be more visible during the Tun Dr. Mahathir's era).

 

2. New York (EWR) - MH axed EWR during the first round of axing in 2006 but the government interfered and forced MH to reinstate the route back to support Visit Malaysia 2007 (then continued until 31 August 2008) campaign. The current situation maybe can give MH strong excuses to cut it once and for all. TG already closed their JFK station, so I think MH may follow suit. As most A.Netters and MW members have suggested, MH should code share to EWR/JFK with KL/DL/NW via AMS.

 

3. Stockholm (ARN) - ARN was also axed in 2006 together with EWR but the government interfered and forced MH to reinstate the route back to support Visit Malaysia 2007 (then continued until 31 August 2008) campaign. As I mentioned in another thread, serving ARN is not in line with MH's hub and spoke business model and allignment towards SkyTeam's membership. MH should concentrate on SkyTeam hubs (AMS, CDG and FCO) alongside LHR and FRA and abandone ARN altogether. 3 weekly service just proved that the demand is weak and MH already has a code share flights to/from 8 Scandinavian cities (Bergen, Sandefjord, Oslo, Stavanger, Gothenberg, Stockholm, Helsinki and Copenhagen) in place with KL via AMS.

 

Other than those 3 are maybe IST (2 weekly via DXB), JNB and CPT, but maybe highly unlikely.

 

When can we see changes in MH's network, be it frequency cut or route termination/suspension? Do we have to wait until the end of October 2008 when the new season kick off?

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Politicians....Dewan Rakyat...they'll just never ever get their facts right especially when it comes to matters about airlines..

 

I believe the Minister's reply is prepared by the officer from the respective ministry. Maybe the officer is not doing his homework....

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I never thought the Batu Gajah representative can ask something which I regard as stupid. AirAsia is not a government owned entity like MH, so there's no way that the government can interfere in their business the way they interfered MH. AK will never venture into any routes that won't result in any profit. There's no such thing as AK will take over MH's abandoned routes without any business analysis to back it up.

 

Your point is noted and true enough that any professional and sane private company will not venture into a money-losing business from the start. Nonetheless, I refer back to the Batu Gajah MP's statement, and I believe she was referring to the what is known as "AirAsia X cannot serve destinations that is served by MAS" policy. My interpretation of her statement is that whether AirAsia(AirAsia X in this context) will be allowed by the government to serve the route that MAS pull-out from(if they have the interest) RATHER than asking/requiring them to serve the route. More details from this site: http://www.theedgedaily.com/cms/content.js...092820-16de8d73

 

Regards,

Alson

 

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Nonetheless, I refer back to the Batu Gajah MP's statement, and I believe she was referring to the what is known as "AirAsia X cannot serve destinations that is served by MAS" policy. My interpretation of her statement is that whether AirAsia (AirAsia X in this context) will be allowed by the government to serve the route that MAS pull-out from (if they have the interest) RATHER than asking/requiring them to serve the route.

There is some confusing over this matter. Although earlier we (the public) were told that D7 (AirAsia X) can't serve destinations that MH is serving, it proved wrong when D7 launched PER recently (the first flight will be on 2 November 2008). And the fact that D7 is going to serve MEL by March 2009 is no secret as well. MEL is also one of MH's strong fortress in Australia. I think D7 can pursue some other airports that MH is currently serving, it's just that some of it are too expensive to operate into, which is contradict to D7's low cost business model (SYD comes to mind).

 

But I agree that there are some MH's former routes that maybe D7 can turn into a profitable venture, like FUK and NGO (the current Japanese shareholdings in D7 may realized this).

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Guest MarcosMD11

MH is trying to add a second daily flight KUL-AMS-KUL, big rumour is will start in next summer season 2009.

 

At the moment MH fly extra evening flight with 772 on saturday's as MH7327. The number of pax increase big via AMS. MH hope to continue this extra flight on saturday during winterschedule.

 

 

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It's high time that MH reconsider having code share with KLM connectiing flight to other parts of Europe and perhaps EWR.

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I just keep my finger cross for Frankfurt....

 

At least not until before I completed my study here huhu. Like I said.. MH is my fastest way home from FRA

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MH is trying to add a second daily flight KUL-AMS-KUL, big rumour is will start in next summer season 2009.

 

At the moment MH fly extra evening flight with 772 on saturday's as MH7327. The number of pax increase big via AMS. MH hope to continue this extra flight on saturday during winterschedule.

Really? Wow, great news! Now AMS is definitely no. 1 in the list for MH's A380.

 

It's high time that MH reconsider having code share with KLM connectiing flight to other parts of Europe and perhaps EWR.

Currently MH and KL are codesharing to/fro 8 cities in the Scandinavia via AMS. But yes, perhaps more destinations would be welcomed (like Luxembourg, all major Dutch cities and Northen German cities - Hamburg, Dusseldof, Bonn).

 

I just keep my finger cross for Frankfurt.... At least not until before I completed my study here huhu. Like I said.. MH is my fastest way home from FRA.

I am for once had a feeling that FRA will stay prosperly in MH's network. In fact, I think MH can make it a daily affair.

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Guest MarcosMD11

It's high time that MH reconsider having code share with KLM connectiing flight to other parts of Europe and perhaps EWR.

 

 

Well its possible for MH to codeshare from AMS to EWR, at moment NW flying to to EWR from AMS with 757's in combination with KL. Because also NW is code share partner of MH.

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Guest MarcosMD11
Can a B757 flies from AMS-EWR? Just curious...thought :rolleyes:

 

Well NW use winglets on there 757-200's flying from DTW,EWR,BOS,BDL to AMS. Also other US carrier use 757's to Europe as CO,DL and US.

 

Maybe is first step of MH to join SkyTeam working on route to US with NW.

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At the rate MH is cutting their international routes, I foresee that in no time to come, MH will not only be 'just an airline code'... it will become just a 'codeshare code'!

 

Something appears to be seriously wrong with MH's route strategies... India is a booming market, why are they making losses where other airlines are aggressively trying to increase capacity to meet demand? Kolkata, Ahmadebad are 2nd tier cities that are coming up fast. Will MH end up being just a regional carrier? AMS has never been a high yield destination (for SQ at least), and yet MH plans to mount a second daily? Did MH do their sums wrong somewhere? Maybe the dynamics of KUL and SIN are just too different to make a fair comparison.

 

I note that MH is now introducing S$9 fares between SIN-KUL. This is such a lucrative route for SQ with so much business taking place between the two countries, not to mention the vast numbers of Malaysians working in SIN - is there a need to lower prices to compete with the LCCs?! Malaysia is one of Singapore's largest trading partner!

Edited by S. Huang

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At the rate MH is cutting their international routes, I foresee that in no time to come, MH will not only be 'just an airline code'... it will become just a 'codeshare code'!

 

Something appears to be seriously wrong with MH's route strategies... India is a booming market, why are they making losses where other airlines are aggressively trying to increase capacity to meet demand? Kolkata, Ahmadebad are 2nd tier cities that are coming up fast. Will MH end up being just a regional carrier? AMS has never been a high yield destination (for SQ at least), and yet MH plans to mount a second daily? Did MH do their sums wrong somewhere? Maybe the dynamics of KUL and SIN are just too different to make a fair comparison.

 

I note that MH is now introducing S$9 fares between SIN-KUL. This is such a lucrative route for SQ with so much business taking place between the two countries, not to mention the vast numbers of Malaysians working in SIN - is there a need to lower prices to compete with the LCCs?! Malaysia is one of Singapore's largest trading partner!

 

 

Strictly speaking, MH is already a virtual airline as its aircrafts belong to PMB. Like telco with virtual network, a airline with entirely codeshare network and strong marketing is a profitable business proposition. :good:

 

MH has always unlike other airlines, unique that few people understand conventionally. :pardon: :sorry:

 

:drinks:

 

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But yes, perhaps more destinations would be welcomed (like Luxembourg, all major Dutch cities and Northen German cities - Hamburg, Dusseldof, Bonn).

 

Only AMS-MST is connected by air; rest of major Dutch cities only reachable by train...

 

 

Can a B757 flies from AMS-EWR? Just curious...thought :rolleyes:

 

Longest 757 route from AMS is to DTW, so answer is YES...

 

 

AMS has never been a high yield destination (for SQ at least), and yet MH plans to mount a second daily? Did MH do their sums wrong somewhere? Maybe the dynamics of KUL and SIN are just too different to make a fair comparison.

 

Don't forget: KL and MH do code-share on the route generating lot's of traffic (don't know about yield), while SQ prefers to do it 'on her own'...

Fact is: C-class both on MH and KL usually full every day ex AMS...

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Strictly speaking, MH is already a virtual airline as its aircrafts belong to PMB. Like telco with virtual network, a airline with entirely codeshare network and strong marketing is a profitable business proposition. :good:

 

MH has always unlike other airlines, unique that few people understand conventionally. :pardon: :sorry:

 

:drinks:

YES..MH is unique business model..i try to understand it sometimes..i believe 3/4 of MAS existing a/c are lease from PMB (Penerbangan Malaysia Berhad)..and for new B737-800NG some of it MAS own while others PMB..

 

Last two week ago i guess, PMB would like go their b737-400 to let thier fleet to others leasing company..mean MAS soon will continue lease from other company if this happen in future..

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haih.. bila la MH nak join SkyTeam.. :(

 

probably...

 

MH: Nobody wants to play with me.... *sob* *sob*

 

Poor MH.. :p

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Something appears to be seriously wrong with MH's route strategies... India is a booming market, why are they making losses where other airlines are aggressively trying to increase capacity to meet demand? Kolkata, Ahmadebad are 2nd tier cities that are coming up fast. Will MH end up being just a regional carrier? AMS has never been a high yield destination (for SQ at least), and yet MH plans to mount a second daily? Did MH do their sums wrong somewhere? Maybe the dynamics of KUL and SIN are just too different to make a fair comparison.

 

I note that MH is now introducing S$9 fares between SIN-KUL. This is such a lucrative route for SQ with so much business taking place between the two countries, not to mention the vast numbers of Malaysians working in SIN - is there a need to lower prices to compete with the LCCs?! Malaysia is one of Singapore's largest trading partner!

 

 

Don't forget: KL and MH do code-share on the route generating lot's of traffic (don't know about yield), while SQ prefers to do it 'on her own'...

Fact is: C-class both on MH and KL usually full every day ex AMS...

It all boils down to creating awareness at your key markets. I am a firm believer in marketing strategies properly in place which the team in MH sorely LACKS! While international O&D traffic might be questionable radiating from Malaysia, MH has also seriously failed as a 6th freedom carrier fumbling from nowhere to nowhere. While they have attempted to better align their connections via KLIA, it is still a long way to go before they can be a brand that is being considered by people flying from all over the world to elsewhere via Asia.

 

Speaking to my friends in Australia, a mere mention of MAS evokes images of safety concerns. Hello... MAS is not Garuda! But they do not know that because the marketing efforts of MAS down under is downright pathetic. Not just down under... but elsewhere too!

 

When they launched the "MH is M'sian Hospitality" campaign, where did they choose to launch it? Malaysia. Ok now that is done. what else? It all went quiet and it seems like the same problem that has dogged MAS all this while - MOMENTUM (or lack of).

 

As to why they lowered their fares to so-called fill the otherwise unsold seats, well it is anyone's guess. It is a good short term strategy to plug the leak. In the long run, the damage to the brand will be rather passively severe. I keep drumming on the brand-marketing-advertising I guess coming from an occupational hazard. There are so many wrongs I want to make right with this airline it is not even funny... HIRE ME PLEASE!

 

Their JCL are constantly full out of AMS. But it makes you wonder, how much did those people pay to fly up front? MAS is not a carrier that can command a premium and as a consequence, they frequently slash their JCL tickets like some promotions ago, I was able to pay a higher tier fare YCL out of SIN (SGD 1600+++) and fly JCL to SYD. I am speculating that similar promotions are at work here out of Europe. Either that or, they are just simply cheaper! PERIOD!

 

In order for MAS to be able to command a higher premium, the very tedious groundwork of changing people perception through a constant marketing effort needs to be implemented. From my observation, whenever one starts, it stops and there is almost no follow up with near silence from the airline! It just does not work like that!

 

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MH: Nobody wants to play with me.... *sob* *sob*

 

"Lou Lee"

Doesn't that just remind you of the Gillardian chap from years ago ?! ;)

 

 

Ryan,

Best not to get too worked up about MH's way of doing things :)

So, what if they do engage your expertise and you manage to get your ideas implemented successfully ?

You'll realize by now that with each 'new broom' that takes up the helm, things will be turned inside out & downside up, regardless

So, would it not be a greater heartache then ?! ;)

Edited by BC Tam

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"Lou Lee"

Doesn't that just remind you of the Gillardian chap from years ago ?! ;)

 

 

Yep, the only person came out of ice cold bath detention in winter smiling :huh: :good:

 

 

:drinks:

Edited by KK Lee

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Yep, the only person came out of ice cold bath detention in winter smiling :huh: :good:

Likely another urban legend :p

On appearance alone, there is very little to discern between a smile (of joy, perhaps ?) and grimmace (of agony) - particularly so with said subject's facial features :rolleyes:

But then, we're going way OT here already ! :)

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hi guys. im a little new here. so is it for sure that they're going to cancel the ewr flights? im thinking of going back home this winter so if i want to fly mh i might have to go through lax? thanks!

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