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Azrin A

MAS to terminate routes that causes losses

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Thanks Mr. Azizul for share some info here..

 

But the route KLU-ARN-EWR operate only 2 times weekly really doesn't make any sense..I agree with what Mr. K K Lee had mention in post #31..the frequency of airline operate on the route will effect on passenger loads..But i believe also MAS try to keep the EWR route even they face difficulties to maintain this route..Since SQ offer daily non-stop flight EWR..that the biggest challenge for MAS..

 

Emm look like India sub-continental destination always popular either for Malaysian traveler or Indian workers..which one??hehehe

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Saturday July 26, 2008

MAS may start cutting capacity next monthBy B.K. SIDHU

 

 

PETALING JAYA: Amid a lot of uncertainly in the future, forward bookings at Malaysia Airlines (MAS) seem to be “holding on’’ for now. Regardless, its plans to reduce capacity on many of its routes by 6.4% or equivalent to 1.75 million average seat per kilometre would be implemented soon.

 

The plan could not be implemented earlier for MAS enjoyed peak capacity in July but the capacity cuts would be implemented at the end of August or September.

 

b_pg07azmil.jpg

Tengku Datuk Azmil Zahruddin

 

While forward bookings may be intact for now, MAS executive director and chief financial officer Tengku Datuk Azmil Zahruddin does not deny a reduction in demand given the slowdown in air travel experienced in many parts of the world.

 

“The preloads are holding but a demand adjustment can be expected. We are looking at a demand reduction of 6%-7%,’’ Azmil said at a briefing in London recently.

 

Capacity reduction is common for airlines in a period of rising fuel cost. A report quoting an analyst predicts a 15% capacity reduction globally by year-end.

 

MAS plans to use smaller airplanes for its New Zealand and Australian routes. It may cut back on the number of flights on its Kuala Lumpur-Los Angeles route and is looking at reducing frequencies on routes to India, Pakistan and Bangladesh.

 

It may even skip the Stockholm-New York sector while retaining the KL-Stockholm flights.

But the flights to London Heathrow would be spared, as Azmil said “we are is still enjoying very good load factor on the sector.’’

 

A six-month evaluation is underway to determine which routes that are “bleeding” and need either to be restructured or realigned.

 

“We want to cut capacity/frequency and use smaller airplanes, not necessarily scrap routes,’’ he added.

 

While MAS joins the league of airlines that are cutting capacity to mitigate the high fuel cost, local rival AirAsia seems to be blazing ahead with its expansion plan, opening new routes every now and then. The airline just announced its 7th destination to Guilin in China with the inaugural flight on Sept 3.

 

The capacity reduction is a short-term measure since oil prices are still high. MAS wants to grow its network in the medium term and focus on growth markets such as the Asean, China and India markets. Crude oil prices have come down by over US$20 a barrel from the record high of US$147.27 a barrel on July 11.

 

“We will not pretend that we are not affected by the high fuel prices,’’ said Azmil.

 

MAS is also working to upgrade its fleet so that it has more fuel-efficient aircraft. It is moving from four aircraft model types to three - wide-body, narrow-body and ultra-large.

 

“We must operate cost-effective aircraft and there must be economies of scale,’’ said Azmil.

 

As for the narrow-body aircraft, MAS inked a US$2.6bil deal to buy 35 B737's recently. It also has an option to order an additional 20 by the turn of the decade.

 

It has also issued request for proposals (RFP) notes to both Airbus and Boeing for 55 wide-body aircraft to replace its aging B777 and B747 aircraft. It expects to finalise a deal by year-end and this new batch of planes could cost the company from US$3.3bil to US$4.43bil.

 

MAS will also share the compensation that it would receive for the delayed delivery of the six A380 from early this year to 2011 with its parent, Penerbangan Malaysia Bhd..

 

Meanwhile, MAS announced that it had extended the contract of Tan Sri Dr Mohamed Munir Abdul Majid as non-executive chairman for another two years from Aug 1 this year to July 31, 2010.

 

Munir joined the board of directors on June 1, 2004. He was appointed chairman on Aug 1, 2004.

 

 

 

http://biz.thestar.com.my/news/story.asp?f...mp;sec=business

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MAS may start cutting capacity next month

 

MAS plans to use smaller airplanes for its New Zealand and Australian routes. It may cut back on the number of flights on its Kuala Lumpur-Los Angeles route and is looking at reducing frequencies on routes to India, Pakistan and Bangladesh.

Smaller aircraft to NZL and AUS? Can a B734 reach PER from KUL? What widebody aircraft in MH's fleet that is smaller than the B772 MH is currently deploying to PER, ADL, MEL and AKL? I believe the A333 has higher seat capacity than the B772 and MH don't have enough A332 to be deployed to all these route. Contrary to my previous reply, frequency to BOM and DEL are increased.

 

It may even skip the Stockholm-New York sector while retaining the KL-Stockholm flights.

Does he means this? EWR will be closed? What's the point of retaining ARN then? 3 weekly (soon 2 weekly), near AMS, not alligned with SkyTeam requirements etc.

 

A six-month evaluation is underway to determine which routes that are “bleeding” and need either to be restructured or realigned. “We want to cut capacity/frequency and use smaller airplanes, not necessarily scrap routes,’’ he added.

No mention about EZE huh? If only someone would leak the 'bleeding' information (don't hate me).

 

MAS is also working to upgrade its fleet so that it has more fuel-efficient aircraft. It is moving from four aircraft model types to three - wide-body, narrow-body and ultra-large.

I think narrow body is the newly ordered B737-800 and the ultra large is the A380. Which aircraft type that MH is going to choose for the wide body category?

 

“We must operate cost-effective aircraft and there must be economies of scale,’’ said Azmil. It has also issued request for proposals (RFP) notes to both Airbus and Boeing for 55 wide-body aircraft to replace its aging B777 and B747 aircraft. It expects to finalise a deal by year-end and this new batch of planes could cost the company from US$3.3bil to US$4.43bil.

See, that's why we are ranting about fleet renewal, fleet renewal, fleet renewal! I hope MH has hedged it's fuel requirement adequate enough, because it's going to be a long wait for the now 'has yet to be ordered' aircrafts to be delivered. How long is the waiting list for A350? 10 years isn't it?

 

Meanwhile, MAS announced that it had extended the contract of Tan Sri Dr Mohamed Munir Abdul Majid as non-executive chairman for another two years from Aug 1 this year to July 31, 2010. Munir joined the board of directors on June 1, 2004. He was appointed chairman on Aug 1, 2004.

Is this bad news or very very bad news?

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Emm look like our friend start to argue on MAS..but it true, I also start to argue MAS policy on their business concept and approach.. :help: :help: :help:

 

MAS look like too "defense" while world fuel price hike "attacking" them..For how long MAS need to "defense" and not make any "attack" to win this game? Why Coach IJ and others look like too comfort with kind of playing game? Just because their want to keep their KPI at excellent level?? Are you bore to see this type of patten their playing for all over the season..

 

"The players" are too old to play and hard win their supporting fan heart..So when the Tan Sri Dr Mohamed Munir and team will complete to buy new high performance "players"?? Why he should kick out EWR airport when people want to use/need it instead of keep the "under performance" of BUE/EZE??

 

Emm MAS..apa sudah jadi?? =@ =@ =@

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MAS plans to use smaller airplanes for its New Zealand and Australian routes. It may cut back on the number of flights on its Kuala Lumpur-Los Angeles route and is looking at reducing frequencies on routes to India, Pakistan and Bangladesh.

 

Smaller aircraft to NZL and AUS? Can a B734 reach PER from KUL? What widebody aircraft in MH's fleet that is smaller than the B772 MH is currently deploying to PER, ADL, MEL and AKL? I believe the A333 has higher seat capacity than the B772 and MH don't have enough A332 to be deployed to all these route. Contrary to my previous reply, frequency to BOM and DEL are increased.

 

Please, no! :blink: I want T7 for my KUL-AKL-KUL flight. I'm not gonna settle with anything inferior to T7! :help: I always thought MH130/131 are profitable routes, almost full everyday (might need some correction here).

 

 

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I always thought MH130/131 are profitable routes, almost full everyday (might need some correction here).

Things not always apparent at first glance - recall the quoted 140% load required for breakeven on MAN route ? :p

What chance has a "almost full everyday" route under such circumstance !

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well...when you put some baboons together.....what do you expect la? From second behind SQ (in this region), MH will be soon behind TG, PR and GA.

 

I am ranting and raving but I still cannot understand how they CANNOT make MAN and ZRH work..... simply beyond expectations!

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Saturday July 26, 2008

Meanwhile, MAS announced that it had extended the contract of Tan Sri Dr Mohamed Munir Abdul Majid as non-executive chairman for another two years from Aug 1 this year to July 31, 2010.

 

Munir joined the board of directors on June 1, 2004. He was appointed chairman on Aug 1, 2004.

 

God, I would have thought that this guy got the axe a long time ago considering his 'wise ways'. But noooo, sambung kontrak lagi ada. That's Malaysia for you.

 

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MH have cut back MH140/141 (BNE/SYD-KUL) from September. It has been reduced from a daily 744 service to 4 times weekly with a 772. It seems Air Asia X from Gold Coast might be having an effect.

 

I also noticed that CDG-KUL flights have been cut to 5 weekly from daily.

 

I had flights on all of these routes in May/Jun and loads were quite low, even the flight KUL-LHR would have been only about 50% in economy.

 

I found out all of these changes as I have a trip booked in Aug/Sep and our flight back from KUL to BNE moved to a day later, thankfully MH are paying for a nights accomodation at the Pan Pacific.

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The management should reconsider rpelacing the B747 and A330s since these fleets are ageing. The Boeing 777 is still a superior aircraft to fly on board for the moment.

 

MH once used Boeing 747-400s for KUL-ARN-EWR but was replaced by B777 till today. I personaly prefer B777 for long haul. It's high time replace the ageing wide body with a more advance and fuel efficiient aircraft.

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Does anyone know how long the 744 will stay on KUL-ARN-EWR?

 

I looked in Amadeus and it says 744 for May '09 too.

 

Btw, 744 service has started on KUL-ARN-EWR route, first 744 this time was 9M-MPM.

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I guess with the increase in fuel prices and other items around the world and how it is affecting everyone, I can understand why MH may be cutting back on some frequencies and etc. But I just cannot understand how they (MH) have been in the business for over 50 years and yet airlines like JET AIRWAYS, QATAR and ETIHAD can make a lot more sense on routes that are not even served by airlines like SQ and CX. They are able to survive despite the fuel price increase and yet increase routes and destinations like bread and butter. If only they were smart enough in the early days as to not allow to much interference from certian parties, MH would have been the much talked about airline instead of SQ and CX. The hub and spoke route also could have been achieved much earlier if there werent policies to protect MH from other foreign airlines operating in Malaysia and dominating the routes at the same time. WEll SQ and SIN have won that battle and of course MH and KUL are left behind, even CGK and DXB have taken over KUL in recent years. Who cares about the best airport in the world if the home airline is not smart enough ? Who cares about the best cabin crew service if not many pax fly them ? AK has beaten MH in the amount of pax they fly each year. There is a big question mark on how MH has survived all these interferences and have to put up with the likes and demands of certain morons !!!

 

I am still a loyal fan of MH but I hope they will buck up soon and get on track again with big guns like our neighbours SQ, CX and TG as well as other guns like LH, BA, QR, EY, QF, and EK. They must act fast and be proactive in many aspects or they will be a follower instead of a leader in the airline industry. Routes like MAN, ZRH, NGO, FUK, VIE, CCU, CNX and many more should be revived once the new 738NG and hopefully new wide bodies are around.

 

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