Malaysia Airlines to open seven new bases throughout Malaysia

KUALA LUMPUR: Malaysia Airlines will be opening seven new crew bases in Malaysia, with a total of 18 Boeing 737-800s being relocated with locally employed pilots and cabin crew staff to permanent bases in Kota Kinabalu, Kuching, Miri, Labuan, Kota Bharu, Penang and Johor Bahru. 

The move will improve connectivity and service quality on the domestic network and emphasizes the airline’s commitment to the respective states, boosting local economies and fostering inbound tourism. 

Malaysia Airlines has also applied to extend its rural contract agreement with the Ministry of Transport, to further underline its commitment to rural air service in Sabah and Sarawak.

To ensure convenience and improved connectivity for passengers, Malaysia Airlines intends to reorganise its operations in Kuala Lumpur International Airport (KLIA) to concentrate operations in the main terminal. 

The plan, expected to be in place by early next year, will mean quicker connections for ASEAN passengers between international and domestic flights. This will mean faster and more reliable baggage transfer and ultimately ensure better customer satisfaction.

Malaysia Airlines has seen an improved on-time performance (OTP) since the seamless transition to becoming a new entity on the 1 September 2015, with 89.8% OTP on the day despite major disruptions caused by the recent haze.

Source: Malaysia Airlines | 3 Dec 2015

Emirates codeshare deal raises Malaysia Airlines profile

Valued partner: MAB said it had entered into a codeshare partnership with Emirates, giving MAB passengers access to 90 locations in the United States, Europe, the Middle East and Africa, served from Emirates’ Gulf hub in Dubai. — AFP

PETALING JAYA: A day after Malaysia Airlines Bhd (MAB) shocked the entire global aviation fraternity with a codeshare partnership with the world’s biggest international carrier Emirates, it said the negative trend of revenue per available seat km (ASK) has stopped and reversed.

Its cost-saving measures and renegotiation of vendor contracts remain a major imperative of its turnaround plan, MAB said in its first progress report since it took over the airline operations from the former Malaysia Airlines.

“It is amazing how Christoph Mueller (MAB group chief executive officer) got Emirates to agree.

“We always wanted something like this but at the back of our minds, we know MAB is not in the same league as Emirates, but Mueller pulled it off.

“It is a brilliant move,” said Maybank Investment Bank senior analyst Mohshin Aziz.

Even MAB's rivals agree. AirAsia boss Tan Sri Tony Fernandes said: “I think it is very good”.

Brendan Sobie, an analyst with CAPA Centre for Aviation, also felt the deal with Emirates “made sense”.

Late Wednesday night, MAB said it had entered into a code-share partnership with Emirates, giving MAB passengers access to 90 locations in the United States, Europe, the Middle East and Africa, served from Emirates’ Gulf hub in Dubai.

However, it will also sever ten code-share agreements with existing partners and will drop its own direct flights to Paris and Amsterdam at the end of January 2016.

With that, its only direct access to Europe will be via London, where it will maintain double daily flights.

Emirates’ customers, in turn, will have access to MAB's extensive Asia-Pacific and domestic network and it will be effective February next year.

Mueller was quoted as saying that “people will now buy tickets of MAB to reach these final destinations, so we will take back market share in terms of ticket sales”.

Cutting a deal with Emirates has raised MAB's profile and hopefully will change its fortunes. MAB has been bleeding for several years now and suffered a setback with two major air crashes last year.

To turn the airline around, Mueller was hired and a new company has taken over the operations.

On the progress report, Mueller said the airline planned to boost customer experience with a new product strategy and that details will be unveiled over 18 months. MAB on-time performance had also improved.

Though the progress report did not give specific details on loads, yields or even absolute ASK numbers, Mueller said “it is very rewarding to see the new team of employees creating a truly new airline, entirely customer focused and commercially led”.

“We still have a long way to go, but existing and new partners believe in our success and MAB has been set on a path towards reclaiming its position as one of the world’s leading airlines.”

MAB added that it will set up seven crew bases across Peninsular Malaysia, Sabah and Sarawak to improve connectivity and service quality.

A new group structure is in the works to streamline its operations into individual profit centre subsidiaries such as airline, ground handling, cargo, engineering and aircraft ownership to ensure profit and loss accountability and unlock the value of assets by driving new levels of operational and financial efficiency.

The airline will also dispose its non-core assets for better management focus on its core business, MAB said.

Source: The Star Online | 4 Dec 2015

Malaysia Airlines sees turnaround, plans more charter flights from China

KUALA LUMPUR: Malaysia Airlines Bhd is benefiting from encouraging momentum growth and is achieving sustained progress, the national carrier disclosed in its first quarterly update on Thursday. 

It said among the achievements was an improved on-time performance (OTP) of 89.8% on the day despite major disruptions caused by the recent haze. 

“Revenue per available seat per kilometre has improved year-on-year with seat load factor also showing improvements,” it said. However, no specific figures were mentioned for the two metrics.

“We still have a long way to go but existing and new partners believe in our success and Malaysia Airlines has been set on a path towards reclaiming its position as one of the world’s leading airlines,” said MAB group chief executive officer Christoph Mueller.

Malaysia Airlines also said demand out of China and North Asia was showing a positive trajectory, boosted by increased inbound tourism demand. 

The national carrier had signed an agreement to operate 180 additional charter flights from China to Sabah. It would also introduce more charter flights from selected key cities in China beyond the airline’s network, on top of the existing 180, to meet the increased appetite for inbound tourism. 

The airline’s charter service has seen great success with the Umrah operations ferrying pilgrims to Madinah on its A380-800. This year saw an increase in capacity from 282 seats to 494 per flight on 45 direct flights from Kuala Lumpur to Madinah.

It said greater focus has been given to improving customer service. The quarter saw a new product initiative with the introduction of a premium business class lay-flat seat for the A330-300 fleet. 

The seat marks the beginning of a planned product roll-out of more customer centric, personalised and innovative offerings. 

The fully flat seat will be introduced from April 2016 on all A330-300 aircraft. The conversion will be completed by September 2016. Other new and improved product offerings are in the pipeline, including a new catering concept in all classes and on-board Wi-Fi.

The airline is also focusing on ensuring good corporate governance on a company-wide level. 

Its new group structure will streamline its operations into individual profit centre subsidiaries such as airline, ground handling, cargo, engineering and aircraft ownership.

This will ensure profit and loss accountability which will unlock the value of assets by driving new levels of operational and financial efficiency, the airline said. 

“We are working hard to change the structure of the airline fundamentally, from the inside out. This will involve looking at process, efficiency and tighter cost controls,” Mueller added.

Concurrently, the airline is also disposing its non-core assets for better management focus on its core business.

To promote harmony and constructive dialogue with employees, MAB has created the Malaysia Airlines Work Council to provide a platform for a mutually cooperative relationship between management and employee groups.

The airline has also signed a contract to introduce AirPas, a state-of-the-art software system, to maximise cost savings from ground operations and audit accurate billing. AirPas has been successfully used by other world leading airlines and the company is looking at a target saving of up to 20% on ground operations over the next 18 months.

The progress update coincided with MAB clinching a code-sharing agreement with Emirates to expand the airline’s global coverage. 

MAB will add its code Emirates flights to Europe, Middle East, Africa, and the Americas. 

In return, Emirates will add its code on MAB flights to domestic routes in Malaysia, South-East Asia and selective cities across Asia-Pacific.

Additionally, MAB will suspend its Paris and Amsterdam routes from Jan 25, 2016 onwards.

Source: The Star Online | 3 Dec 2015

Malaysia Airlines to add more crew bases to boost connectivity

KUALA LUMPUR: Malaysia Airlines Bhd plans to improve connectivity and service quality on the domestic network by opening seven new crew bases in the country.

The national carrier, in its first quarterly progress update since becoming a new legal entity on Sept 1, that a total of 18 Boeing 737-800s would be relocated, with locally employed pilots and cabin crew staff, to permanent bases in Kota Kinabalu, Kuching, Miri, Labuan, Kota Bharu, Penang and Johor Bahru.

“Malaysia Airlines has also applied to extend its rural contract agreement with the Transport Ministry to further underline its commitment to rural air service in Sabah and Sarawak,” it said.

To ensure convenience and improved connectivity for passengers, it plans to reorganise its operations in the KL International Airport (KLIA) to concentrate operations in the main terminal.

“The plan, expected to be in place by early next year, will mean quicker connections for Asean passengers between international and domestic flights. This will mean faster and more reliable baggage transfer and ultimately ensure better customer satisfaction,” the airline said.

Malaysia Airlines said it had seen better on-time performance (OTP) since becoming a new entity on Sept 1, with 89.8% OTP on the day despite major disruptions caused by the recent haze.

Malaysia Airlines has also struck a global aviation partnership with Emirates. The partnership will significantly expand the airline’s global coverage and provide a dramatically extended range of travel options for customers, it said.

Group chief executive officer Christoph Mueller told Reuters the deal would allow it to avoid making losses on routes to Europe because it would stop flying to Amsterdam and Paris with its own planes from the end of January and instead book customers onto flights operated by Emirates.

On the overhaul of its information technology systems, the airline said it would introduce systems for easier and faster bookings both on the website and on mobile applications.

“A new passenger service system has been put out to tender and, after the final vendor selection, implementation will start in the first quarter of 2016,” it added.

To promote harmony and a constructive dialogue with employees, the Malaysia Airlines Work Council has been created and is expected to be fully established by January 2016.

It said the Work Council was expected to provide a platform for employees to brainstorm ideas, voice concerns and ultimately work together with management towards a common goal.

The council will have two elected representatives from the separate employee groups which include pilots, cabin crew, engineers, ramp services and cargo handling.

“We are working hard to change the structure of the airline fundamentally, from the inside out,” Mueller said.

“This will involve looking at process, efficiency and tighter cost controls. Through diligent execution, we’ve scored some quick wins this quarter. There is still a long way to go towards putting in the foundations for sustainable long term growth, but our progress in the quarter signals a positive trend in the right direction.”

Source: The Star Online | 3 Dec 2015

Malaysia Airlines enhances partnership with Emirates

The agreement allows Malaysia Airlines customers to reach up to 38 destinations in Europe on a daily and even double daily basis for key European cities such as Zurich, Rome, Munich, Frankfurt, Madrid, and Barcelona.

KUALA LUMPUR: Malaysia Airlines (MAB) and Emirates have announced a new partnership that will give MAB customers access to a “dramatically expanded” range of travel options.

The national carrier said in a statement that this would give its customers access to 38 European and 15 American destinations as well as 38 destinations in the Middle East and Africa and Indian Ocean.

Under the agreement signed by Emirates president Sir Tim Clark and MAS chief executive officer Christoph Mueller, MAB will add its code on flights of Emirates to Europe, Middle East, Africa and the Americas. In return, Emirates will add its code on flights of MAB to domestic routes in Malaysia, South-East Asia and selective cities across the Asia-Pacific region.

MAB said the codeshare would be implemented progressively throughout 2016 subject to regulatory approvals. Sales under this codeshare agreement will begin from Feb 1 next year.

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The agreement, it said, would create a seamless international network connecting Malaysia to more than 90 destinations on the Emirates network across Europe, Middle East, Africa and the Americas, exclusive frequent flyer benefits and world-class travel experiences.

Mueller said in the statement that the improved connectivity would enable MAB customers to reach up to 38 destinations in Europe on a daily and even double daily basis for key European cities such as Zurich, Rome, Munich, Frankfurt, Madrid, and Barcelona. 

“This partnership gives our customers access to a dramatically expanded range of travel options. It is a great way for customers to travel seamlessly to major cities across the world. Furthermore, Dubai is a tourism, trade and logistics hub which has earned itself the reputation as being the gateway between the East and the West,” he said.

Mueller said this was part of the national carrier’s initiative towards enhancing air connectivity with key priority markets overseas for increased tourist arrivals into Malaysia.

Source: The Star | 2 Dec 2015

MAHB leaves it to Govt to decide on new passenger service charges

A lion dance was performed at the launch of the Flight Club at the KL International Airport in Sepang.

SEPANG: Malaysia Airports Holdings Bhd (MAHB) leaves it to the Government to decide on its five-yearly review of passenger service charges (PSC), which is due next month. 

Managing director Datuk Badlisham Ghazali said any decision on the review of the fees would depend on the government. 

“The PSC has to be reviewed every five years and we have entered the five-year cycle. 

“It’s about time now, and we leave it to the Government to decide as they are aware about it,” he told reporters after opening the Flight Club at the KL International Airport (KLIA) in Sepang on Wednesday. 

The PSC at klia2 currently is RM32 for international passengers and RM6 for domestic passengers, while at the KLIA main terminal is RM65 for international passengers and RM9 for domestic passengers. 

Badlisham said the review was needed as Malaysian airports had to keep up with the progress and investments made by other regional airport operators. 

“This is not just about increasing charges, but also about improving other comparative elements that other regional airports are investing in. 

“So, the government needs to keep up in term of new services and new infrastructure as the charges are borne by passengers who are using the terminal, not paid by airlines, and yet we are among the lowest PSC in this region,” he added. 

On the Express Rail Link (ERL) fare hike, Badlisham said improvements in passenger services should commensurate with the fared rises. 

“Even now with the introduction of ERL into klia2, its capacity is already maximised. 

“We hope with the fare rises, ERL will also be expanding its services by buying larger coaches to accommodate more passengers for the benefit of passengers,” he added. 

Express Rail Link Sdn Bhd announced yesterday that from Jan 1 next year, the fare for a one-way trip between KL Sentral and KLIA/klia2 will be RM20 more at RM55. 

Source: Bernama | 2 Dec 2015

AirAsia operations now in KKIA Terminal 1

KOTA KINABALU: All AirAsia operations have moved to Kota Kinabalu International Airports (KKIA) Terminal 1, paving the way for Malaysia Airports Holdings Bhd (MAHB) to shut down Terminal 2.

MAHB chief operating officer Datuk Abd Hamid Mohd Ali said the number of passengers using Termi­nal 1 annually would increase from 3.2 million to 6.8 million with AirAsia finally moving its operations there.

However, even with that increase, Terminal 1 is still underutilised as its capacity is nine million passengers annually.

Hamid said MAHB had posted notices of AirAsia’s relocation to Terminal 1 at various airports to notify passengers.

The relocation, he said, would be a smooth one as MAHB, the airline and other authorities had been preparing for it since October.

Hamid said AirAsia had also carried out simulations for arrival and departures at Terminal 1 on Nov 23 and 28 as part of preparations for the relocation.

“Their systems are ready, as well as their ticketing, administration and ramp offices,” he added.

Hamid said MAHB had been waiting for AirAsia’s relocation to Terminal 1 since the Government announced in 2010.

Prime Minister Datuk Seri Najib Tun Razak had previously said that there was a plan to convert Terminal 2 into a dedicated terminal for cargo and air services.

He said the move to centralise airlines at the main terminal was aimed at making Sabah a regional hub.

Source: The Star | 1 Dec 2015