MAS ready to spend RM30 bln on new fleet

[Robin 0]

KUCHING: Malaysia Airlines (MAS) is planning to gradually replace its entire fleet of aircraft, and the exercise is expected to cost between RM20 billion and RM30 billion.

 

In announcing this to more than 400 staff at the airline’s annual dinner at a local hotel here Tuesday, its managing director Datuk Seri Idris Jala said the move was necessary in view of the growing competition and rising operational costs.

 

“We have already placed orders for 15 new aircraft - ATRs to replace the existing Fokkers and these new French-made aircraft will have 74-seater capacity and we will gradually over time change our fleet.

 

“We will also be replacing the twin otters with a newer version and over time we will replace them. By the end of this year and into the new year we should finalise our programme to change and modernise our fleet,” he said.

 

He said the company also had plans to reduce total costs by RM1 billion every year.

 

Idris said MAS had successfully pulled through a very hard time last year and now it was having a very healthy cash balance, with RM4.6 billion as at Nov 12, this year.

 

“We all had to go through a very difficult time because we had to do a lot of hard things last year and this year. This year I believe that with our good results so far and as long as we keep going as we are, we should probably get the highest profit we would ever make in 60 years,” he said, much to the applause of the staff.

 

Although this year was a very good year for MAS, Idris warned that it was going to be very tough next year and in 2009 in view of growing competition from competitors and rising operating costs especially the steep increase in aviation fuel which had shot up to a new height recently.

 

He said MAS would have to contend with its competitors who would bring in 400 new aircraft next year and another 400 new aircraft by 2009.

 

“For a long time the people of Sarawak and Sabah had always been complaining about MAS, MAS this no good, that no good, rural air service no good and MAS making losses flying rural routes and after another airlines took over the rural air service, they did a really poor job.

 

“For a very very long time you had done a very good job, but it was just not appreciated by the people,” he said, adding that now that the people were realising that an alternative airline was not necessarily better, they were beginning to appreciate MAS’ services.

 

Earlier in his speech, MAS Sarawak area manager Shauqi Ahmad said to date Sarawak region had contributed about 4.5 per cent of total Malaysia-Asian revenue and 1.95 per cent of MAS’ sales worldwide.

 

“Our contribution to the entire system will become most significant with the activation of MasWings’ services which will produce a multiplier effect because of our advantages due to our good interconnectivity,” he added.

 

He said during his two-and-a-half years of service in Sarawak, he had witnessed significant improvement in the staff’s work ethics and behaviour and their efforts towards making MAS a profitable airline.

 

He was glad to note that although the introduction of MASWings meant more tasks for the staff, they were still able to carry out their duties diligently and efficiently.

 

[Louis L. 2]

He said MAS would have to contend with its competitors who would bring in 400 new aircraft next year and another 400 new aircraft by 2009.

 

 

wow...400 plane??? is this true

 

but what can i c from the statement above, i can c the real war is coming ... .....

[affendi osman 0]

wow...400 plane??? is this true

 

but what can i c from the statement above, i can c the real war is coming ... .....

 

I believe it is 40 this year, and 40 next year!

[Guest Michael]

This is the right way for MAS to go as good things are beginning to pay off.

[adrianqcs 0]

Bravo Bravo...to my future company!!!!applause..applause...

[Chan CS 0]

"We have already placed orders for 15 new aircraft - ATRs to replace the existing Fokkers and these new French-made aircraft will have 74-seater capacity and we will gradually over time change our fleet.

 

"For a long time the people of Sarawak and Sabah had always been complaining about MAS, MAS this no good, that no good, rural air service no good and MAS making losses flying rural routes and after another airlines took over the rural air service, they did a really poor job.

 

"For a very very long time you had done a very good job, but it was just not appreciated by the people," he said, adding that now that the people were realising that an alternative airline was not necessarily better, they were beginning to appreciate MAS' services.

 

 

If I'm not wrong they ordered 20 ATR altogether? 10 for MasWings and 10 for Firefly?

 

Come on lar, who are those people that complaint MAS was not doing well? Politicians?

 

Anyway, it seems that IJ is stricking back!

[Jessnor Arif 1]

I believe it is 40 this year, and 40 next year!

 

that depend on how many competitors MH take into account. if MH think they have 40 competitor and each competitor take 10 new aircraft, the number should be 400 plane this year and next year

[Mushrif A 3]

I believe it is 40 this year, and 40 next year!

 

It is 4-hundred this year and another 4-hundred next. Not forty.

 

Just add all the new planes that Qantas, SQ, AK, Jetstar, EK, EY, QR, CX, Tiger, Vietnam, Jet, Asiana, the myriad of Chinese airlines, etc will be getting over these two years.

 

These are all MH's competitors.

[Kenneth T 0]

Nothing new and certainly not a suprise for me here since these talks has been repeated over and and over again...and even if MH place an order..they will have to wait few years for the plane to be delivered in view of the current delivery slot for both AIRBUS and BOEING are now quite full at this time being.

[Li Ren 2]

 

It is really hard for me to believe that the company whose main building was sold can 'climb up' so fast from the ''swampy area'' ..

 

 

 

[Mohd Azizul Ramli 2]

Come on lar, who are those people that complaint MAS was not doing well? Politicians? Anyway, it seems that IJ is stricking back!

Several organizations and politicians. Remember the recent incident where the Senator Club's President demanded Dato Seri IJ to be sacked after a delay of a MH flight in TGG, which involved a minister?

 

MH should have been doing this many years ago (couldn't blame them as they are in a shabby condition back then). Competitors have already started receiving their ordered aircrafts. MH on the other hand, still has yet to finalise its future fleets.

 

Nevertheless, the announcement at the year end is something that I have been anticipating. My guess:

• B773ER to replace current B744 (up to 20 orders)
• A350 to replace current A332/3 (up to 30 orders)
• B738 to replace current B734 (up to 50 orders)
• No replacement for B772ER

Assumption is made based on MH's last announcement about its intention to purchase 50 narrowbody and 50 widebody aircrafts.

 

I am relieved to hear about the RM 4.6 billion cash in hand at the moment. Bravo MH!

Edited November 15, 2007 by Mohd Azizul Ramli

[adrianqcs 0]

I prefer the 787 over the a350. Several advantages like:

 

1) bleedless engines - electrical power source is now independant. more fuel efficient engines

2) higher attitude cabin pressure at 5000 feet as compared to the conventional 8000 feet due to composite fuselage

3) composite fuselage is more corrosive resistant and have lighter weight than alloy

 

What i fear is the price difference...airbus is known to give hefty discounts to give a head on to boeing... i remembered 100's of a319 was given to easyjet for what is the biggest sale of that aircraft on that year....hefty 5 million discount for each plane......You would realize that boeing seldom give away planes, they have employees to pay and to keep a stable company. Where as airbus's always cutting jobs cuz of these ridiculous cheap sales..boo

[Andrew Ong 1]

He said MAS would have to contend with its competitors who would bring in 400 new aircraft next year and another 400 new aircraft by 2009.

 

That's a lot of aircraft there

 

[S V Choong 4]

yawnnnnnnnnnnn........

[Guest Michael]

Exciting stuff here I must say. People I have spoken to continue to fly with MAS for award winning service and seat comfort.

[Eric C 0]

Wow go MAS!~

Hope that all goes to plan for them. Makes me proud to be Malaysian

 

Hard to believe though that they will order 800 new aircraft. It will be a huge logistical nightmare to phase out the current fleet.

 

Just think about it, MAS currently has about 80 aircraft, so they are planning to expand their fleet 10-fold.

That means that they will probably need to fully expand the KLIA, expand the maintenance facilities, recruit 10 times more staff, among other tasks needed for the expansion.

 

 

[BC Tam 2]

..... Hard to believe though that they will order 800 new aircraft. It will be a huge logistical nightmare to phase out the current fleet.

 

Just think about it, MAS currently has about 80 aircraft, so they are planning to expand their fleet 10-fold .....

Yes, very hard to believe

Hint : perhaps you should re-read the previous postings, carefully !

[Eric C 0]

that depend on how many competitors MH take into account. if MH think they have 40 competitor and each competitor take 10 new aircraft, the number should be 400 plane this year and next year

 

 

It is 4-hundred this year and another 4-hundred next. Not forty.

 

Just add all the new planes that Qantas, SQ, AK, Jetstar, EK, EY, QR, CX, Tiger, Vietnam, Jet, Asiana, the myriad of Chinese airlines, etc will be getting over these two years.

 

These are all MH's competitors.

 

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.

 

[Kader 0]

yay 50 + 50 a/c will be acquired, good news to those who wanted to be pilot...

maybe off topic, but how did MAS have 400 staffs in Kuching..anybody know? i think that's alot of staffs,but its not impossible...hehe

[Mushrif A 3]

Just think about it, MAS currently has about 80 aircraft, so they are planning to expand their fleet 10-fold.That means that they will probably need to fully expand the KLIA, expand the maintenance facilities, recruit 10 times more staff, among other tasks needed for the expansion.

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?

maybe off topic, but how did MAS have 400 staffs in Kuching..anybody know? i think that's alot of staffs,but its not impossible...hehe

IJ was talking to 400 staff at the event held in Kuching. No where in the article did it mentioned that all staff are based in Kuching.

[Mohd Yohan 0]

yeay! definately good news for aspirating pilots like me....... 30billion is 1/4 of Emirates budget on its new fleet.......too good to be true.... A380 bila nak finalize nie? 6bijik order status unkown jer .... anyway, hope this is true....donno how they gonna get the money.....

Edited November 16, 2007 by Mohd Yohan

[DavidC 0]

Yeah, what is going on with the A380 - the last I check in Airbus website, the 6 units are still listed under Penerbangan Malaysia. Anyone out there knows the status? As for the fate of the 744, it is really sad to see them go as the 744s have the aesthestic elements pinned to it, unlike the 380 - MHO!

 

David C

[Mohd Azizul Ramli 2]

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.

[Hardeep P. 0]

 

What about the 747-8? MH should order 8-10 of them like TG is ordering 8 of them soon.

 

Mayb 773ER or the 747-8 should be in the list. The 747-8 can help the A380 fly twice daily to LHR, once daily to SYD and once daily to AMS while the A380 (assuming they still go with it) will fly once daily to LHR and SYD only for 7X a week. Sufficient to utilise 6 in the fleet.

 

747-8 can fly to South Africa (Cape Town, Johanesburg) and Argentina (Buenos Aires) as well as to USA (LAX). I think directly to LAX will be a possibility.

 

773ER can fly every where else- other European countries- Paris, Frankfurt as well as Rome and off course Stockholm and then to Newark. Might even fly Istanbul via Dubai. As for OCEANIA routes, Auckland and Melbourne is a possibility. For Oriental routes, perhaps HK, Tokyo, Seoul and off course Beijing and Shanghai. For India, Mumbai, Delhi.

 

772ER rest of the OCEANIA- Perth, Brisbane, Adelaide and other ORIENTAL and Middle Eastern routes.

 

A330/A350- All routes to capitals of ASEAN and some domestic and also India and China.

 

738- All domestic routes and some ASEAN routes.

 

So all win. 747-8, A380, 777s, A330/A350 and 738.

[Nik H. 3]

The A380 and MAS.

 

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 ).

 

This is another educational and amusing thread for me......