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Peter Bellew interview: 'Malaysia Airlines is probably the toughest job you could have in aviation at the moment'

 

Meath native Peter Bellew has just taken over as chief executive of troubled Malaysia Airlines. Putting it back on course is a huge challenge, writes John Mulligan

 

Former Ryanair executive Peter Bellew. He replaces the ex-Aer Lingus boss Christoph Mueller in Malaysia Airlines
Peter Bellew is certain this is going to be the "biggest turnaround in history". The Meath native has just taken over as chief executive of Malaysia Airlines, the troubled Asian carrier. And he has effectively staked his own reputation on completing a massive re-engineering of what was a financial and operational basketcase.
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Which put him at very low risk of having an affair with a cabin crew per his predecessor.

 

But his whole Ryanair persona kinda worrying me.

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Yeah if you heard his interview this morning on BFM, when they asked about his Ryanair past, he just shrugged it off saying now the game is about pricing, and MAS cannot be disillusioned into thinking it can charge a premium over its competitors (though to be fair he was referring to EK :D)

 

Have a listen if you have 20 minutes or so to spare:

 

http://www.bfm.my/bg-peter-bellew-malaysia-airlines-an-irishman-at-the-helm.html

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He did not say much that was not already said.

 

I think they are close to ordering the A321neo LR - they are focused on operating routes to secondary airports in China. The A333 is too big for these routes. They are in a hurry to be the first movers into these routes. I would say that European destinations are still a long way from being restored.

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Yeah, Chuang was pushing for some words on a WB order but instead Peter just mentioned the longrange NBs.. which is of course the A321. Was hoping to hear more A350 orders..

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Face it guys.. For long term sustainability, MAB don't need more WB now. If they had them, sure, they could have made some minimal profits given the low oil prices.. But even then, the overall operation is still so messy and inflated.. Right now, it makes sense to get Long range NB aircraft - it permits route expansion/optimisation in the primary market for the airline which is the Asia-Pacific.. DEL/BOM/PVG/PER/BNE/ADL/TPE/HKG and a multitude of secondary cities in both China and India will let MABS have not merely optimised access, but the chance to increase frequency without killing yield to existing WB markets and/or re-deploy limited WB fleets to higher yielding markets.

 

In time, with a stable regional platform, expansion to the EU and African growth markets can take place.. But this is years off, and we'll just have to curb our excitement of any WB orders to other local airlines such as AirAsia Group or Malindo.

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Agree - MAB needs to get back to basics first and build a strong foundation before doing the more glamourous routes.

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If mab is to remains as fsc and relevant, the CEO and his senior management should be from me3, lh, ba, kl or af else would lack experience and effective strategy to compete with lcc and me3.

 

Without taxpayers subsidy, mab cost couldn't be cheaper than lcc. Competing with lcc is certain to loss millions.

Edited by KK Lee

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Where they're from is a matter of opinion.. For example, someone from any of the carriers u mentioned might tend to replicate rather than create, leading to further inefficiencies and comparisons in terms of performance, which is unfair given the different prevailing circumstances and economic conditions..

 

What MH might profit from and create a niche from are bold, never seen before ideas - creativity that builds branding, reliability, respect and harnesses collective but connected ideas and programs to grow the airline naturally.

 

There is local talent, foreign talent - bumi or non-bumi.. but at the end of the day, a leader is only as good as his/her followers believe. Making sure the foundation of employees are looked after, needs to be the next step forward. That fat as they say has been trimmed, but the knife left many bare wounds, that have been at times rubbed with salt. The underlying tone of employee morale at MAB is one of uncertainty and disbelief in the plans that are laid forth to so-call rescue the company. The turnaround plans at MAS/MAB are akin to repeat treatments of Chemotherapy, targeting the bad cells, but never ridding the body of its cancer.. And worse yet as the therapy draws on, the body and will to survive is weakened. Calls to pull the plug, amidst times of pure agony and frustration for those within and close, scream louder.

 

Euthanize? I believe the creation of MAB was a so-called attempt, but as the days and months roll on - it seems that the dosage wasn't enough, and the cancer that prevails is only getting stronger and more crippling.. In the mean time, the Surgeon General has to turn its attention to the other patients in the ward, and over-crowding results in our sick patient being asked to live out their last days at home, whilst healthy /functioning body parts are put up for sale, like Engineering, Ground Services, training academy etc...

 

In the meantime, we hope that whatever plans emerge, the aim and the effort is pure and simple. To make the airline a safe, cheerful, meaningful and rewarding place to work, and to bring the world, once more, to the doorstep of Malaysia.

 

My Sunday Single Malt dribble, complete.

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Where they're from is a matter of opinion.. For example, someone from any of the carriers u mentioned might tend to replicate rather than create, leading to further inefficiencies and comparisons in terms of performance, which is unfair given the different prevailing circumstances and economic conditions..

 

What MH might profit from and create a niche from are bold, never seen before ideas - creativity that builds branding, reliability, respect and harnesses collective but connected ideas and programs to grow the airline naturally.

 

There is local talent, foreign talent - bumi or non-bumi.. but at the end of the day, a leader is only as good as his/her followers believe. Making sure the foundation of employees are looked after, needs to be the next step forward. That fat as they say has been trimmed, but the knife left many bare wounds, that have been at times rubbed with salt. The underlying tone of employee morale at MAB is one of uncertainty and disbelief in the plans that are laid forth to so-call rescue the company. The turnaround plans at MAS/MAB are akin to repeat treatments of Chemotherapy, targeting the bad cells, but never ridding the body of its cancer.. And worse yet as the therapy draws on, the body and will to survive is weakened. Calls to pull the plug, amidst times of pure agony and frustration for those within and close, scream louder.

 

Euthanize? I believe the creation of MAB was a so-called attempt, but as the days and months roll on - it seems that the dosage wasn't enough, and the cancer that prevails is only getting stronger and more crippling.. In the mean time, the Surgeon General has to turn its attention to the other patients in the ward, and over-crowding results in our sick patient being asked to live out their last days at home, whilst healthy /functioning body parts are put up for sale, like Engineering, Ground Services, training academy etc...

 

In the meantime, we hope that whatever plans emerge, the aim and the effort is pure and simple. To make the airline a safe, cheerful, meaningful and rewarding place to work, and to bring the world, once more, to the doorstep of Malaysia.

 

My Sunday Single Malt dribble, complete.

 

Palliative care for terminally ill patient could be punishing to the patient and family, and is a drain of resources. Beside miracle, assisted suicide is probably the next best solution available as less painful, and resources could be preserved for the future generations or better use.

Edited by KK Lee

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I hope the above two posts re: cancer and its treatment are just personal opinion and analogy just for MAB. Cancer treatment is a complex matter and not as straight forward as stated above. Ditto euthanasia

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I hope the above two posts re: cancer and its treatment are just personal opinion and analogy just for MAB. Cancer treatment is a complex matter and not as straight forward as stated above. Ditto euthanasia

Good to know the moral police for the politically correct are out and in force. To clarify further and before the "you're unqualified and insensitive" remarks start, have been through the loss of family from cancer and participated in the euthanasia debate, and am from a family with strong medical background. No mention that cancer treatment is "straight forward" either, please understand the minimal-rigidness approach one generally uses when adopting an analogy. Quite open-ended and often used to "humanise" events or incidents that may be otherwise completely..

 

If you couldn't tell it was an analogy, I hope V Wong has clarified it for all. Also if you couldn't tell it was personal opinion, apologies if my sign off was in anyway ambiguous. "Sunday single-maly dribble" should read "my personal opinion", or rather more "a personal pontification"

 

In other news, CAPA reporting that MH potentially expanding A330ceo fleet and ridding the A380 is imperative to returning to sustainable profits. I believe that article is in the category of "expert opinion".

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Tax variance between KLIA, klia2 absolutely nuts

 

Malaysia Airlines CEO Peter Bellew condemns the difference in passenger tax between KLIA and klia2, saying it is cheaper to run flights from klia2.

 

PUTRAJAYA: Malaysia Airlines Chief Executive Officer Peter Bellew today condemned the passenger tax difference per passenger between KLIA and klia2.
Bellew said flights operating from KLIA had a USD8.25 (RM33.50) higher cost per passenger compared to klia2.
“It is absolutely nuts that there are different charges between KLIA and klia2, which are only 2km apart.
“It just doesn’t make any sense. Nowhere else in the world would you get such a difference in cost.
“I am hoping that Mavcom (Malaysian Aviation Commission) will equalise the charges.
“Otherwise, we may just operate our flights out of klia2,” Bellew said at a press conference in Putrajaya today.
Meanwhile, Bellew noted that the planned high-speed rail (HSR) between Singapore and Kuala Lumpur could be good for the airline business, contrary to reports that it would harm the aviation sector.
“There is nothing to stop the HSR being complementary to airlines. It is a good business opportunity.
“The way I see it, it creates more traffic movement in Malaysia.
“A passenger could buy a HSR ticket coming from Singapore and then book a flight ticket on the way back.
“There is even the possibility of including both in one package. I personally think it is generally good for Malaysia,” said Bellew.
Last week, the Federal Government signed a memorandum of understanding with Singapore, announcing that the HSR project was expected to be completed by 2026.
The high-speed train to Singapore will run from Bandar Malaysia in Kuala Lumpur through Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri, a distance of 350km.
Travel time between Kuala Lumpur and Singapore will be reduced to 90 minutes, with the bullet train running at a maximum speed of over 300kph along certain sections.

 


Source: FMT

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Tax variance between KLIA, klia2 absolutely nuts

 

Malaysia Airlines CEO Peter Bellew condemns the difference in passenger tax between KLIA and klia2, saying it is cheaper to run flights from klia2.

 

PUTRAJAYA: Malaysia Airlines Chief Executive Officer Peter Bellew today condemned the passenger tax difference per passenger between KLIA and klia2.
Bellew said flights operating from KLIA had a USD8.25 (RM33.50) higher cost per passenger compared to klia2.
“It is absolutely nuts that there are different charges between KLIA and klia2, which are only 2km apart.
“It just doesn’t make any sense. Nowhere else in the world would you get such a difference in cost.
“I am hoping that Mavcom (Malaysian Aviation Commission) will equalise the charges.
“Otherwise, we may just operate our flights out of klia2,” Bellew said at a press conference in Putrajaya today.

 

If pax tax is counted as mab opex and moving from T1 to T2 will save opex, mean more magic could be expected.

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I think his point of contention is that MH pax will pay more in bottom line fares, all other things being equal due to the disparity in Airport Tax.

 

So, if MH wants to compete, it has to absorb the difference in tax or move to klia2.

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I think his point of contention is that MH pax will pay more in bottom line fares, all other things being equal due to the disparity in Airport Tax.

 

So, if MH wants to compete, it has to absorb the difference in tax or move to klia2.

 

If mab intended to be a lcc, by all mean, should move to klia2.

 

I was taught; "the higher the monkey climbs, the more expose his bum". I am contented to wait and watch the magic show :)

Edited by KK Lee

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With the huge massive shopping mall at klia2 aka LCCT KL and same basic airport amenities (except lounges), the line between the two terminals are now blurred. If I am PB, I will definitely moved to klia2 since all the facilities are almost similar.

 

Now that TF has rebranded klia2 as LCCT KL, it will be confusing for public as to why MH being a premium airline would fly from there. TF has made it very clear KLIA for premium carrier and LCCT KL for LCC. Thus the differentiation.

 

is MH still a confused puppy??

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Why did you quit the airline in 2004 and return six months later to help manage the bankruptcy when then-CEO Jerry Grinstein called?

I was really vocal when I left about the company’s strategy—they were making some really dumb decisions. The biggest one was trying to turn Delta into a low-fare airline. When you have employees making sacrifices—pilots took 50 percent pay cuts—you have an obligation to those people to use their investment in the company wisely. And to just take it and plow it into low fares was lunacy. I thought we were making really bad decisions. And Jerry called me and asked me to come back, and he said he agreed and said he was changing out the commercial leadership of the organization.


What did you think Delta was doing wrong?

We were allowing AirTran and JetBlue to define us rather than defining the market and the game on our terms. And we were losing—and losing badly at that. I was convinced that we could never win. We were flying widebodies to Florida just to keep fares low rather than flying them to Paris and keeping fares high. There was a reason why we were broke. I like to say we didn’t go bankrupt by making a lot of smart decisions. We made a lot of dumb decisions. We had to own it.




Food for thought.


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Why did you quit the airline in 2004 and return six months later to help manage the bankruptcy when then-CEO Jerry Grinstein called?
I was really vocal when I left about the company’s strategy—they were making some really dumb decisions. The biggest one was trying to turn Delta into a low-fare airline. When you have employees making sacrifices—pilots took 50 percent pay cuts—you have an obligation to those people to use their investment in the company wisely. And to just take it and plow it into low fares was lunacy. I thought we were making really bad decisions. And Jerry called me and asked me to come back, and he said he agreed and said he was changing out the commercial leadership of the organization.
What did you think Delta was doing wrong?
We were allowing AirTran and JetBlue to define us rather than defining the market and the game on our terms. And we were losing—and losing badly at that. I was convinced that we could never win. We were flying widebodies to Florida just to keep fares low rather than flying them to Paris and keeping fares high. There was a reason why we were broke. I like to say we didn’t go bankrupt by making a lot of smart decisions. We made a lot of dumb decisions. We had to own it.
Food for thought.

 

Different markets. The US market still have large premium traffic that legacy carriers can cater to. Malaysia is all about low yielding passengers.

 

What applies to the US doesn't necessarily apply to MY.

Edited by Mohd Suhaimi Fariz

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