MALAYSIA AIRLINES TO ACQUIRE SIX AIRBUS A330-200

LONDON: Following years of uncertainty and instability from the carrier, Malaysia Airlines looks to be on its way to recovery. They announced a deal with AerCap for six Airbus A330-200’s which will come from Air Berlin, a career that has also faced uncertainty due to its bankruptcy. The aircraft is due to be delivered in February 2018 and will be on a six-year lease until the end of 2023 respectively.

The six aircraft that they have placed an LOI with are replacements for Boeing 737 aircraft that are to be returned back to the lessor. With the added seat capacity, it means that Malaysia Airlines can focus on the domestic networks much more heavily and potentially expand into other areas across Asia. The aircraft is going to be used for the upgauged demand that they have been experiencing as a carrier.

It is said that the aircraft is going to be configured via a two-class configuration, with 287 seats in Economy and 19 Business Class seats. The aircraft additions are part of Malaysia Airlines’ five-year program called the MAS Recovery Program (MRP) which is used for the “resetting of the airline’s operating business model towards a competitive cost position, with a focus on the network and revenue management.” The MRP was initiated in August 2014 which set out the foundations for the airline’s recovery as well as the airline’s path back into profit. This program was in result of the tragedies of MH17 and MH370 which damaged the reputation and also reduced profit and revenue levels significantly.

Commenting on this was Group CEO Peter Bellew said, “As laid out in the MRP, we are working hard on bringing the airline to a competitive cost position. We also want to rebuild Malaysia Airlines so we can reassume our previous premier position in the industry. The current lease rates are incredibly competitive and we are being opportunistic by leasing them at this point.”

Bellew also added that he was “grateful” for the speed that leasing company AerCap took when making the deal as they wanted to capitalize on potential aircraft to buy, especially from a failed airline like AirBerlin. These A330-200’s will add to the carrier’s fleet of six A380s, 15 A330-300s, and 48 B737-800s.

Tan Sri Md Nor Yusof, the chairman of Malaysia Airlines expressed a sense of gratefulness when given the opportunity to acquire these aircraft. He said, “I am pleased to share that Malaysia Airlines saw a gap in our service a year ago and this foresight has enabled us to act swiftly when this opportunity of potentially adding six very affordable widebody aircraft, arose. The right aircraft at the right time at the right price is key to our success and these aircraft will enable us to create much-improved customer experience as we move towards transforming the airline into a premium 5-star carrier once again.”

Source: Airways Magazine | www.airwaysmag.com | 29 September 2017

Scoot tingkatkan akses ke Pantai Timur Malaysia dengan laluan Singapura - Kuantan

SYARIKAT penerbangan Scoot yang berpangkalan di Lapangan Terbang Antarabangsa Changi, Singapura bercadang untuk meningkatkan akses ke Pantai Timur Semanenjung Malaysia dengan perkhidmatan penerbangan terus dari Singapura ke Kuantan mulai 2 Februari 2018 nanti. 

Scoot merupakan syarikat penerbangan kedua yang beroperasi bagi laluan Singapura - Kuantan selepas Penerbangan Firefly dan buat permulaan Scoot akan beroperasi bagi laluan ini dengan kekerapan tiga kali seminggu, iaitu setiap hari Isnin, Rabu dan Jumaat. 

Penerbangan TR470 dari Singapura ke Kuantan dijadualkan berlepas pada jam 18:45 dan dijadualkan tiba di Lapangan Terbang Sultan Ahmad Shah Kuantan (LTSAS) pada jam 19:55, manakala penerbangan TR471 dari Kuantan ke Singapura dijadualkan berlepas pada jam 20:35 dan dijadualkan tiba di Lapangan Terbang Antarabangsa Changi (Changi) pada jam 21:45. 

Perkhidmatan penerbangan terus ini akan mengambil masa kira-kira 70 minit sahaja menggunakan pesawat jenis A320-200, manakala jualan tiket telah dimulakan sejak 1 September 2017 yang lepas. Untuk maklumat lanjut dan tempahan tiket, sila layari laman sesawang www.flyscoot.com. 

Dalam pada itu, Scoot juga diharap dapat memperkenalkan laluan Singapura - Kota Bharu yang berpotensi untuk menarik penumpang dari hab Singapura ke Pulau Perhentian, Terengganu melalui Kota Bharu. Buat permulaan, Scoot boleh memperkenalkan laluan ini dengan kekerapan tiga kali seminggu pada sebelah siang hari. 

Kempen sokongan melalui Facebook telah dilancarkan pada 16 September 2017 bersempena Hari Malaysia bagi laluan Singapura - Kota Bharu dengan kempen We Want Scoot To Fly To Kota Bharu The Gateway Into Perhentian Islands (Kami Mahu Scoot Terbang Ke Kota Bharu Gerbang Ke Pulau Perhentian) melalui www.facebook.com/gettingtoperhentian. 

Sumber: Kota Bharu Airport (www.kotabharuairport.blogspot.com)

PENERBANGAN FIREFLY DIGESA SAMBUNG SEMULA LALUAN KOTA BHARU - JOHOR BAHRU

KUALA LUMPUR: Penerbangan Firefly digesa supaya menyambung semula laluan penerbangan Kota Bharu - Johor Bahru yang telah digantung sejak 30 Oktober 2016 yang lepas demi kemudahan rakyat Johor dan Kelantan yang sering berulang-alik antara dua buah negeri ini. 

Laluan penerbangan ini bukan sahaja penting untuk kemudahan rakyat kedua-dua negeri tetapi juga sebagai pemangkin kepada industri pelancongan kedua-dua buah negeri ini khususnya dan juga peringkat nasional secara amnya. 

Permintaan-permintaan daripada orang awam supaya laluan ini disambung semula telah banyak kali disuarakan dan boleh didapati di laman sesawang Facebook Firefly Airlines (www.facebook.com/firefly), Facebook Laluan Penerbangan Kota Bharu - Johor Bahru (www.facebook.com/laluankbjb), dan juga Facebook Kota Bharu Bandar Raya Islam (www.facebook.com/kbbri). 

Sebelum penggantungan, laluan ini beroperasi dengan kekerapan lima kali seminggu, iaitu setiap hari Ahad, Selasa, Khamis, Jumaat, dan Sabtu. 

Oleh itu, Pengurusan Penerbangan Firefly diharap dapat menimbangkan permintaan ini dan diharap laluan tersebut dapat disambung semula dengan kekerapan sekurang-kurangnya tiga kali seminggu. 

Sumber: Kota Bharu Airport | www.kotabharuairport.blogspot.com 

Airbus still in the mix after Boeing order

KUALA LUMPUR: Malaysia Airlines Bhd. remains keen on Airbus SE’s upgraded A330neo wide-body jet after placing an order for the rival Boeing Co 787.

The re-engined Airbus twin-jet is a candidate for a major order as Malaysia Air renews its long-haul fleet and could operate alongside the Boeing Dreamliner, chief executive officer Peter Bellew said in an interview on Thursday.

Prospects for an A330neo purchase from the South-East Asian carrier appeared to have faded when Boeing said on Tuesday that it had secured a contract for eight 787-9s worth US$3bil at list prices. Bellew had said in March that he was looking at buying 25 to 30 A330s or 787s for delivery between 2019 and 2023.

“I think the A330neo will be a super plane, and we are still very much talking with Airbus,” the CEO said by telephone, adding that he plans to meet with the Toulouse, France-based manufacturer toward the end of next week for further discussions.

The A330neo, equipped with upgraded Rolls-Royce Holdings Plc engines, comes in two sizes priced at US$255mil and US$291mil before discounts, while the all-composite 787-9 sells for US$270mil.

Talks are continuing on the sourcing of second-hand A330s to fulfill Malaysian’s near-term fleet requirements, with several high-specification examples available on attractive terms from a bankrupt European airline, according to Bellew, who said he plans to meet with the leasing company involved, among others, in Dublin today.

The CEO has said his airline needs up to a dozen current-generation A330s, with half of the planes required in the first half of next year and the rest in 2019. They would mainly replace single-aisle Boeing 737s on medium-haul routes capable of supporting wide-bodies. 

Source: Bloomberg | 16 September 2017

MAS opts for Dreamliner - mulling flying to US, Europe cities again

Prime Minister Datuk Seri Najib Tun Razak shaking hands with Boeing Chief Executive Officer Kevin McAllister (right) at the Memorandum of Understanding Exchange Ceremony between Boeing and Malaysia Airlines Berhad (MAB) today. Also present MAB Chief Executive Officer Peter Bellew (centre).

PETALING JAYA: Malaysia Airlines Bhd is mulling flying the United States-Malaysia route again and expanding into European cities once it gets delivery of the eight new ultra-long B787-9 Dreamliner jets and eight B737-MAX it just ordered from US aircraft manufacturer Boeing.

Earlier, it was in talks with European jet maker Airbus to buy more aircraft, but opted for the Dreamliner instead. Some of the new jets will be used to replace its existing fleet, especially since it will be using the six A380 aircraft for Haj charter flights and others to enter new markets. It had earlier ordered several A350 aircraft.

The deal for the 16 aircraft was signed on Tuesday and is worth US$4.86bil, and that includes maintenance, repair and overhaul (MRO) services.

“It is a normal thing to (order planes).

“Airlines need aircraft, and new aircraft have long waiting periods. It is better to order now so that the future is secured,” said Maybank Investment Bank Research senior analyst Mohshin Aziz.

Other than the KL-London route, the airline had axed all its long-haul routes, including its only US link via Los Angeles, some years ago to turn into an Asian-centric carrier in a major transformation exercise to revive the airline. “There are nine different very long-distance routes that we are looking at right now, and certainly the west coast of the US and as far as New York. We will be assessing and investigating as to the market size. We are also looking at Amsterdam, Paris, and expansion into Japan and South Korea,” Malaysia Airlines managing director and chief executive officer Peter Bellew told Malaysian journalists in Washington.

“We expect to use the aircraft to fly some new routes with longer distance than we are currently operating. This gives us the flexibility of having the long-distance A350 and ultra-long B787 aircraft, and we will be able to go back to markets where we were in the past, and into new markets not served before,” Bellew added.

While the airline is still assessing if the US is a viable connection, some analysts are not so keen for it to move in that direction so fast.

“Ultra-long-haul flights don’t really work. Via eastwards it is too challenging geographically, and there is too much capacity from Cathay Pacific, Japanese, Taiwanese and now Chinese carriers. Going eastward is also equally challenging, with too much of competition from the Middle-Eastern carriers. But flying to Japan and South Korea would be no issue,” said Mohshin.

CAPA Centre for Aviation analyst Brendan Sobie added that “it’s way too early for the airline to even consider flying again to North America. The South-East Asian-North American market has become extremely competitive and challenging. The 787 gives them some flexibility in future, but I would be shocked if Malaysia Airlines flies to the US this decade”.

The airline is fully aware of all the challenges it will face and that is why Bellew said it would need to investigate before finally making a decision.

“The US is a fascinating proposition. The plane can easily and technically reach the west coast; both Los Angeles and San Francisco are prospects. Technically, New York non-stop is more difficult at certain times of the year due to winds.

“As for the business case for US direct flights, we are just starting on it. The planes were not acquired to do that mission, although it is now possible.

“A lot of negotiations are required with our airline partners, handlers, agents and airports in the US to make it economically feasible,” Bellew said in reply to queries from StarBiz.

However, he added that “it is important to remember that all these routes lost a lot of money for Malaysia Airlines in the past. I don’t want to repeat that. This aircraft (B787) has very strong economics, but we need to get partnerships in place to fill the planes from new destinations with attractive yields. With our new reservation system, we have a real chance of selling connecting traffic on our own, and easily on to our partner networks for the fist time in a simple way,” Bellew said.

As for Amsterdam, where it has a longstanding relationship with KLM which it can rely on, Bellew said, “Amsterdam has the best quick connections all across the United Kingdom and Europe and we have good relations with KLM.”

On the possiblity of flying into Paris, he said: “I also have had two meetings in Paris. It is not off the table, but much more difficult financially.” He said the fittings of the aircraft would be luxurious, with a high proportion of Business Class seats with full flat beds. It is even considering adding First Class seating.

“It is really a move to distance ourselves from the low-cost carriers and to be a premier five-star carrier,” Bellew explained.

Malaysia Airlines and Boeing signed a memorandum of understanding for the planes that was witnessed by Prime Minister Datuk Seri Najib Tun Razak during a visit to the White House on Tuesday, where he told US President Donald Trump that Malaysia Airlines would buy 25 Boeing 737 jets and eight 787 Dreamliners.

The eight 787-9s were converted from a prior 737 MAX order, while Malaysia Airlines also added eight purchase rights over 737 MAX aircraft, Boeing said.

The 16 aircraft would cost the airline US$3.63bil at list prices and without the customary discounts. Apart from that, Boeing will collaborate with the airline on a new MRO facility to specialise in the 787, MAX and Boeing new-generation (NG) aircraft.

Bellew said it would use the existing hangar at Sepang for the MRO services, and MRO services to other airlines with the Dreamliner, MAX and Boeing NG aircraft.

The MRO deal for the 16 aircraft is worth US$1.23bil for 12 years of the life of the planes, and when combined with the purchase of 16 aircraft, the total deal to the airline is worth US$4.86bil. Najib added that the airline would probably add another 25 737s in the near future, a deal he said would be worth more than US$10bil (RM42bil) within five years.

Source: The Star Online | Business | 14 September 2017

Malaysia Airlines on track to be profitable

Malaysia Airlines CEO Peter Bellew said the airline would continue to focus on China, which has tremendous growth potentials. — Reuters pic

KUALA LUMPUR: Malaysia Airlines, which managed to increase its year-on-year passenger load factor by 16.9 per cent in the second quarter 2017 (2Q17) compared with the same quarter in 2016 (2Q16) amid heightened competition, is still on track to be profitable in 2018. 

In a statement today, Malaysia Airlines said it would continue to be prudent in controlling capacity and has already scaled back on domestic route frequencies.

Passenger load factors remained steady in 2Q17 with the airline maintaining fare discipline despite the significant drop in competitors’ fares, it said.

The airline said the recovery in international business continued in 2Q17 with a load factor of 78.8 per cent versus 67.4 per cent in 2Q16.

Domestic business load factor declined marginally due to overcapacity, it said.

Group Chief Executive Officer, Peter Bellew, said the airline would continue to focus on China, which has tremendous growth potentials.

“The airline’s new routes, Fuzhou, Nanjing and Wuhan, which were launched in June, are already showing encouraging figures in their early months,” he said.

Moving forward, Bellew said, the airline would remain focused on improving services with a better steer on pricing.

“We have already seen progress on this front via a 2.6 per cent increase in domestic average fare,” he said.

Malaysia Airlines said the group has maintained its cautious outlook for fiscal year 2017.

It said the aggressive price war on the domestic market was expected to continue with a weak ringgit and the higher fuel prices adding to an already challenging cost environment.

“Advance bookings are far stronger in 2017 than 2016, but the airline is seeing yield pressure across all routes as low fares are available from many legacy carriers as well as the traditional low-cost carriers,” it said. 

The airline said it was exploring various options for wide-body aircraft, for possible delivery in 2018 and 2019, to address the rapid growth in international sales which required additional wide-body aircraft.

“Discussions are continuing with a range of lessors, other airlines and aircraft manufacturers to acquire good quality aircraft with lie flat beds and high-quality in-flight entertainment systems. 

“The airline is looking forward to the delivery of the six leased new Airbus 350 aircraft from Air Lease Corp, with the first A350 aircraft planned to arrive year-end,” it said.

The A350s would be used on Malaysia Airlines’ flagship service to London Heathrow from 1Q18 and were expected to result in a more efficient operating cost on the route, it said.

The airline said it was currently assessing the feasibility of a dedicated A380 charter airline as early as 4Q18, to service the growing global traffic on the Haj and Umrah to Saudi Arabia.

Source: Bernama | 8 September 2017

Malaysia Airlines looking at new and abandoned routes with Boeing 787-9 planes

Together with the six Airbus A350 planes which the airlines ordered earlier, Malaysia Airlines is expected to have a full fleet that can offer long-haul destinations non-stop. ― Picture courtesy of Boeing.

WASHINGTON DC: Malaysia Airlines said it will relaunch long-haul routes following yesterday’s agreement with Boeing to purchase eight 787-9 aircraft.

The national carrier’s managing director and chief executive officer Peter Bellew said the first of the ultra-long haul 787-9 planes was expected to be delivered by the third-quarter of 2019.

Bellew said the airline was looking at seven new long-haul routes, including Amsterdam which the airline had stopped a couple of years ago.

The cost of the eight aircraft is about US$2.5 billion (RM10.5 billion) and the planes are to be decked out with a luxurious layout.

“These aircraft will bring Malaysia Airlines back into five-star premium airline. We want to differentiate ourselves from the low-cost carriers.

“This is part of the transformation that we have been working very hard for in the past 12 months of moving out from being a narrow body aircraft to wide body planes. We can now reach destinations we could not have done earlier, even the likes of the West Coast of the United States and North Asia where the yield is much higher,” said Bellew to Malaysian newsmen here yesterday.

He had earlier signed a memorandum of understanding (MoU) with Boeing to purchase these aircraft.

The signing of the document was witnessed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed in the presence of Prime Minister Datuk Seri Najib Razak.

Together with the six Airbus A350 planes which the airlines ordered earlier, Malaysia Airlines is expected to have a full fleet that can offer long-haul destinations non-stop.

The existing six Airbus A380 will be taken over by the new airline subsidiary that will operate the Haj flights from various destinations.

Bellew said the new company was doing very well as there was high demand for flights.

The 787-9 planes for the second set of aircraft that the airline had ordered from Boeing. Earlier this year, they had announced the purchase of the Boeing 737-Max 10.

Bellew revealed that the 737 Max 10 deal was worth some US$6.8 billion (RM28.56 billion), as it was a firm purchase of 25 of the planes and with an option to buy 25 more over the next five years.

The MoU also includes Boeing’s Global Fleet Care service to maintain the national carrier’s current and future Boeing airplanes with the setting up of a world class MRO (maintenance, repair and operations) for the 737 MAX, 787 and 737NG based on Malaysia’s existing facilities in the Kuala Lumpur International Airport (KLIA).

Bellew said its present hangar six was under-utilised for the past 12 years.

“It is the second largest freestanding building in the world and I am sure the MRO there can handle all the Boeing aircraft.”

Source: The Malay Mail Online | 13 September 2017

Malaysia Airlines inks MoU with Boeing for 16 airplanes

The MoU includes eight 787-9 Dreamliners by converting eight of Malaysia Airlines' existing order of the Boeing 737 MAX aircraft and eight additional purchase rights of the 737 MAX 8s.

KUALA LUMPUR: Malaysia Airlines Bhd (Malaysia Airlines) and Boeing have signed an MoU for 16 airplanes comprising eight 787 Dreamliners and eight 737 MAXs.

Boeing said the MoU, which was signed in Washington on Tuesday, includes eight 787-9 Dreamliners by converting eight of Malaysia Airlines' existing order of the Boeing 737 MAX aircraft and eight additional purchase rights of the 737 MAX 8s.

It said the MoU includes Boeing's Global Fleet Care service to maintain the national carrier's current and future Boeing airplanes

The ceremony was witnessed by Malaysian Minister of International Trade and Industry Datuk Seri Mustapa Mohamed in the presence of Prime Minister Datuk Seri Najib Tun Abdul Razak

Malaysia Airlines managing director and chief executive officer Peter Bellew said the national carrier was proud to sign this MoU for the eight aircraft.

"New widebody aircraft are a key to making Malaysia Airlines a premium airline offering a five star product again.

The extraordinary range of the 787-9 gives an ability to operate to any point in Europe and some US destinations in the future from Kuala Lumpur.

“The MOU with Boeing on their Global Fleet Care programme will allow the two companies to build a world class MRO (maintenance, repair and operations) for the 737 MAX, 787 and 737NG based on Malaysia's existing facilities in Kuala Lumpur,” he said.

Malaysia Airlines operates more than 50 Next-Generation 737s and has an additional 25 737 MAXs on order, including 10 for the new 737 MAX 10. 

Source: The Star Online | 13 September 2017

Firefly tambah penerbangan laluan Kota Bharu - Pulau Pinang mulai 15 Sept. 2017

Rangkaian perkhidmatan udara Penerbangan Firefly.

KUALA LUMPUR: Syarikat penerbangan Firefly akan menambah kekerapan penerbangan bagi laluan Kota Bharu - Pulau Pinang daripada sekali sehari kepada dua kali sehari mulai 15 September 2017 ini. 

Penerbangan FY1003 dari Kota Bharu ke Pulau Pinang dijadualkan berlepas pada jam 08:15 dan dijadualkan tiba di Lapangan Terbang Antarabangsa Pulau Pinang (PIA) pada jam 09:10, manakala penerbangan FY1004 dari Pulau Pinang ke Kota Bharu dijadualkan berlepas pada jam 19:45 dan dijadualkan tiba di Lapangan Terbang Sultan Ismail Petra Kota Bharu (LTSIP) pada jam 20:40. 

Sementara itu, jadual penerbangan sedia ada dengan penerbangan FY1002 dari Pulau Pinang ke Kota Bharu yang dijadualkan berlepas pada jam 07:00 dan dijadualkan tiba di LTSIP pada jam 07:55, manakala penerbangan FY1005 dari Kota Bharu ke Pulau Pinang dijadualkan berlepas pada jam 18:30 dan dijadualkan tiba di PIA pada jam 19:25. 

Berikut merupakan jadual penerbangan bagi laluan Kota Bharu - Pulau Pinang dari 15 September 2017 (waktu berlepas di dalam kurungan):-

• FY1002 dari Pulau Pinang ke Kota Bharu (07:00)
• FY1003 dari Kota Bharu ke Pulau Pinang (08:15) 
• FY1004 dari Pulau Pinang ke Kota Bharu (19:45)
• FY1005 dari Kota Bharu ke Pulau Pinang (18:30) 

Untuk maklumat lanjut dan tempahan tiket sila layari laman sesawang rasmi Firefly, iaitu www.fireflyz.com.my. 

Sumber: Kota Bharu Airport | www.kotabharuairport.blogspot.com 

Malaysia Airlines to announce deal to buy 8 Boeing 787 jets

KUALA LUMPUR: Malaysia Airlines will announce a deal to buy eight widebody Boeing 787 jets during the visit of Prime Minister Datuk Seri Najib Tun Razak to the United States, two industry sources said on Tuesday.

The deal, worth more than US$1.8 billion at list prices, is expected to be one of the announcements that will be made after Najib meets with US President Donald Trump on Tuesday, the sources said.

Najib is scheduled to witness a memorandum of understanding signing ceremony between Malaysia Airlines and Boeing, according to a schedule of the Prime Minister's events in Washington reported by Malaysian media outlets.

Malaysia Airlines said it would not comment on reports that are speculative in nature. The sources did not want to be named because the discussions were private.

The airline's chief executive said in June that it was in early negotiations with Airbus and Boeing for the purchase of 35-40 new long-range jets.

Aircraft manufacturers typically give discounts to list prices.

Boeing and Airbus declined to comment.

Source: Reuters | 12 September 2017