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MAS Asked To Revise Air Fares For International Flights


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31 replies to this topic

#1 Naim

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Posted 03 November 2006 - 12:56 AM

Pity MAS lah, if politicians still calling the shots. IPB Image

QUOTE
November 03, 2006 00:09 AM

MAS Asked To Revise Air Fares For International Flights

DUBLIN, Nov 2 (Bernama) -- Tourism Minister Datuk Seri Tengku Adnan Tengku Mansor asked Malaysia Airlines (MAS) to revise its air fares for certain international routes as they were more expansive than other airlines.

He said the prices of MAS air fares on these routes which were between 30 and 50 percent more than other airlines could mar the government's effort to promote Visit Malaysia 2007 (VMY 2007).

"The Tourism Ministry has requested the Cabinet to ask MAS to review the exorbitant air fares. MAS is a national carrier. It portrays Malaysia's image and name... introducing Malaysia to the world.

"If the number of MAS passengers dwindle, how will the world know about Malaysia," he told Malaysian reporters accompanying him in conjunction with the launching of the VMY 2007 promotion on Thursday.

Tourism Malaysia had received complaints on the air fares especially in the economy class, he said, adding that a lot of people were confused because the prices kept changing.

"Following the complaints, the ministry had compared the air fare prices and found MAS tickets were expensive. Our study shows there is room for MAS to lower the air fares and it can still remain competitive especially against the national carriers of neighbouring countries," he said.

He said that the study conducted by 25 Tourism Malaysia offices abroad showed that the prices of MAS air tickets were higher than other airlines in 12 out of 17 sectors including those servicing West Asia, China and India.

Tengku Adnan said that MAS ought to be more concerned over the passengers preference for lower air fares in choosing their airlines.

"MAS ought to revise its air fare structure to stay competitive," he said, adding that he would discuss the matter with Transport Minister Datuk Seri Chan Kong Choy soon to request MAS to offer attractive air fares during the VMY 2007.

He said the Tourism Ministry wanted to forge a cordial relationship with MAS in an effort to promote Malaysia abroad and stimulate the tourism industry.

Tengku Adnan also asked MAS to revise the air fares for domestic routes which was rather expensive causing Malaysians preferring to go for holidays abroad.

"For me, the air fares to Kota Kinabalu and Kuching are expensive. If MAS can reduce them, Malaysias would not want to miss the opportunity to visit their own places of interests.

"We have a lot of scenic tourist destinations. Sipadan (Sabah) is recognised by Unesco as an island with the most beautiful coral reef in the world.

"How many Malaysians have visited Sipadan or Mulu Caves (Sarawak). We don't want any hurdles due to the expensive tickets," he said.

Tengku Adnan said the Tourism Ministry would make a proposal to the Cabinet to introduce departure cards to Malaysians going abroad to find out why the do so.

"The information will help the Tourism Ministry to take various steps to promote domestic tourism," he said.

Tengku Adnan said MAS had agreed to retain the flights to Los Angeles, Paris dan Stockholm following a discussion with the Transport Ministry.

Previously, it was reported MAS was planning to discontinue several international routes as part of its austerity drive.

-- BERNAMA

#2 Edwin P K

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Posted 03 November 2006 - 02:01 AM

yay cheaper rates biggrin.gif

#3 Pieter C.

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Posted 03 November 2006 - 02:29 AM

QUOTE(Naim @ Nov 2 2006, 05:56 PM) View Post

Pity MAS lah, if politicians still calling the shots.


Can second that; politicians should stick to politics and not business affairs of MAS...


#4 Izanee

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Posted 03 November 2006 - 03:04 AM

yeah...i agree the politicians should stay out.
however, MH fares are ridiculous as their 'refurbishment' exercise is merely following what SQ started doing 10 years ago. At the end of the day, you can't try to raise fares to increase yields - not in a market like Malaysia!


#5 KK Lee

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Posted 03 November 2006 - 04:19 AM


MH’s 80’s business model is geared for leisure travelers and the management don’t understand what premium travelers need. No matter how much they upgrade the front cabin, they won’t increase their yield much. Furthermore, political objective is always at priority. Not unlike Soviet system, party representative may has lower rank than Captain but has higher authority.

As long as the Government has shares in MH, politicians will always dip their finger in. How much of restructuring have implemented since the new MD is appointed can tell the will of MH to be efficient and productive.

We have a better hope to start with another airline.



#6 Seth K

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Posted 03 November 2006 - 06:07 AM

Well, that's kind of true...MAS indeed need to decrease their fare..................

#7 Hakan

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Posted 03 November 2006 - 06:26 AM

hmm I hope fares can be decrease. when we made first trip to Malaysia, we paid 475$ returns ticket with include one domestic flight as promotion in 2004. At 2005, we paid around 600€ the same route.
this year we didn't ask to ticket agent but we have a plan to visit Malaysia in 2007, our expecting more budget fares.

#8 Andrew Yong

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Posted 03 November 2006 - 07:33 AM

Yeah MAS should revise their Airfare and AirAsia also should do that!!! The petroleum price in the stable level so they should decrease the fuel surcharge first!!! I also feel the fare to BKI are really expensive if I am not wrong the max. fare is RM1150.00 biggrin.gif !!!! This proce can allow us arrive to Guangzhou with MAS also!!! It is reosonable if they reduce the fuel surcharge first !!! Currently SIA already cut down they fuel surcharge good.gif!!!

#9 Sandeep G

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Posted 03 November 2006 - 08:08 AM

Everyone, do remember that MAS is trying to improve yields and the only way to do so is by raising the air fare..

I'm not sure what overheads are like at MAS today, but I would imagine they are significantly less than before. If the fares are high, but the airline is making a comfortable enough profit on the route (and that profit either grows or doesn't contract), then I really don't see any reason for a price reduction... smile.gif

Also, with higher yields, Malaysia becomes more attractive to foreign carriers and when more of them start coming to KUL, then we'll see healthy competition for MAS (whom by that time should be fiscally sound and a well-oiled machine) and then you'll see some nice healthy price-wars out of KUL. good.gif

In the meantime.. politicians.. stay out! dry.gif cool.gif

#10 Andrew Ong

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Posted 03 November 2006 - 08:13 AM

QUOTE(Sandeep G @ Nov 2 2006, 04:08 PM) View Post

Everyone, do remember that MAS is trying to improve yields and the only way to do so is by raising the air fare..


Sandeep, the Malaysian Tourism Comission wanted MAS to lower the rates becuase they want to promote the Visit Malaysia Year 2007 good.gif and the low air fares will bring tourists to to Malaysia and the tourism rate will skyrocket rolleyes.gif wink.gif .

#11 Sandeep G

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Posted 03 November 2006 - 09:13 AM

QUOTE(Andrew Ong @ Nov 3 2006, 08:13 AM) View Post

Sandeep, the Malaysian Tourism Comission wanted MAS to lower the rates becuase they want to promote the Visit Malaysia Year 2007 good.gif and the low air fares will bring tourists to to Malaysia and the tourism rate will skyrocket rolleyes.gif wink.gif .


At the expense of MAS' profit and turnaround exercise???? blink.gif
MAS can offer promotional packages to entice tourists to come - that would be a better way to raise the tourism rate and keep MAS profitable. pardon.gif

Lowering the cost of the seat is just not an effective solution for MAS at the moment and is exactly what brought MAS to its knees in the past.


#12 kandiah k

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Posted 03 November 2006 - 09:55 AM

QUOTE(Naim @ Nov 3 2006, 12:56 AM) View Post

Pity MAS lah, if politicians still calling the shots. IPB Image
-- BERNAMA



Since when did Paris become a choice of termination ? I thought they have just
increased their freq to daily ? And I guess ARN stays based on the report above ?

help.gif help.gif help.gif

#13 Sandeep G

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Posted 03 November 2006 - 09:57 AM

QUOTE(kandiah k @ Nov 3 2006, 09:55 AM) View Post

Since when did Paris become a choice of termination ? I thought they have just
increased their freq to daily ? And I guess ARN stays based on the report above ?

help.gif help.gif help.gif



hehehe the Media... pardon.gif

But Paris is a hot spot now given MH's apparent desperation to break into the Skyteam Alliance in the short-to-mid term future. biggrin.gif

#14 Tamizi Hj Tamby

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Posted 03 November 2006 - 10:42 AM

Don't just revise the international fares,the domestic fares should be revised too!!!! mad.gif


#15 Chan CS

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Posted 03 November 2006 - 11:54 AM

QUOTE(Sandeep G @ Nov 3 2006, 08:08 AM) View Post
If the fares are high, but the airline is making a comfortable enough profit on the route (and that profit either grows or doesn't contract), then I really don't see any reason for a price reduction... smile.gif


Well, you are definately right in certain extense, but in the long run, this is definately not a wise move.

And if the politicians are doing good for the country, why not they involved in such case? Not all politicians are lousy as what we know, some of them really helpful.

#16 Sandeep G

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Posted 03 November 2006 - 12:05 PM

QUOTE(Sandeep G @ Nov 3 2006, 08:08 AM) View Post

Also, with higher yields, Malaysia becomes more attractive to foreign carriers and when more of them start coming to KUL, then we'll see healthy competition for MAS (whom by that time should be fiscally sound and a well-oiled machine) and then you'll see some nice healthy price-wars out of KUL. good.gif



QUOTE
but in the long run, this is definately not a wise move.


hehehe biggrin.gif Sorry, wasn't sure if you read my entire post above. Definately in the long run is not a good idea, but they need to be financially stable (with significant margins) before they can dream of lowering their prices again... and furthermore they have to have the product and reliability to support that.. otherwise passengers will hop between carriers rather than sticking to MAS in the long run.. this is where FFPs like Enrich are Vital!

#17 Chan CS

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Posted 03 November 2006 - 12:11 PM

QUOTE(Sandeep G @ Nov 3 2006, 12:05 PM) View Post

hehehe biggrin.gif Sorry, wasn't sure if you read my entire post above. Definately in the long run is not a good idea, but they need to be financially stable (with significant margins) before they can dream of lowering their prices again... and furthermore they have to have the product and reliability to support that.. otherwise passengers will hop between carriers rather than sticking to MAS in the long run.. this is where FFPs like Enrich are Vital!


Oops... Sorry... I think I missed out something... Hehe...

#18 Sandeep G

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Posted 03 November 2006 - 12:30 PM

QUOTE(Chan CS @ Nov 3 2006, 12:11 PM) View Post

Oops... Sorry... I think I missed out something... Hehe...


hehehe no worries mate smile.gif

plus, I agree, not all politicians are "bad"

good.gif

#19 Teoh Z Yao

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Posted 03 November 2006 - 03:00 PM

I don't know whether lowering airfare is beneficial for MAS at this moment, but to passengers this would mean good news. To me "yes" on the paying side, but on the other side I'd like the right move so MAS would survive and gain profit.

It is still politicians that are talking much again. They can talk, but let the management decide. Unfortunately, whenever a ruling politician speaks, he will usually send a ripple that would turn into wave that rises up debate and at the end of the day politics prevail... wink.gif It's so common in Malaysia...

Edited by Teoh Z Yao, 03 November 2006 - 03:02 PM.


#20 Lawrence L

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Posted 03 November 2006 - 03:33 PM

Maybe they have done this...

Instead of lowering the airfares, why dont Mas look for partner in tourism industry... eg Hotels, they can form "alliance" with some hotel and offer some packages to the tourists ... like 3 d 2 n in malaysia for rm xxxx.xx including accomodation...

This is a good thing for tourists... no middle man, cheaper..

Just my point of view....




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