Airline Musings (Part 1)

Its been almost a week since Malaysia Airlines (MAS) started its rationalisation thing. MAS is one airline that is seriously on the losing end. The situation seems to get worse day by day. Rising fuel costs to blame then ..

The whole country is probably very much informed about their business turnaround plan. Part of it includes the release of employees through some mutual separation scheme thingy. They expect to achieve cost savings of about RM250 million per annum. With almost thousands leaving MAS, the remaining ones must surely be working their butts off.

They are also cutting a few routes internationally in addition to the major overhaul of the domestic routes. MAS willcease its twice-weekly Kota Kinabalu-Shanghai-Kota Kinabalu Boeing 737-400 service and twice-weekly Twin-Otter service between Tawau and Tarakan, Indonesia effective 1 August 2006. This will be followed by the withdrawal of its thrice-weekly Airbus A330-300 Kuala Lumpur-Fukuoka return service effective 1 September 2006. It will also withdraw its twice-weekly Airbus A330-300 direct service between Kuala Lumpur and Chengdu effective 29 October 2006.

Other unprofitable routes from places like Langkawi, JB and Kuching to like London and Perth have also been axed. Flights between Kuala Lumpur and six destinations, namely Ahmedabad and Kolkata in India, Xian in China, Padang in Indonesia together with Manchester and Vienna in Europe have been discontinued earlier on. Undoubtedly, the face heavy competition with Austrian Airlines on the Vienna route. The ironic thing is both flights depart at almost the same time from KL. There is a major difference in the price with Austrian being cheaper. It was really funny for me to land in Vienna seeing a MAS plane just next to me.

I really think that MAS just doesn't appeal to many. Singapore Airlines (SIA) is still operating the Ahmedabad, Kolakata and Xian routes but don't see it as much of a fuss. If you actually compare the route networks of MAS and SIA, you will SIA's much more diverse. I would seriously advise MAS to work on it European network. The truth is it sucks. There are many more routes they can try flying to.

MAS plans to gradually shift from a point-to-point network to a ‘hub and spoke’ network, thus increasing its competitiveness to connect as many core markets as possible in Malaysia and internationally. They actually plan to transform KLIA into a major hub. Lots of work needed with all the competition from Changi Airport and the upcoming Suvarnabhumi Airport in Bangkok. I've also heard that MAS plans to have some major code-share with Alitalia for its European flights. MAS is keen on joining a Skyteam, one of the major airline alliances in the world. I would very much prefer Star Alliance but it would be almost impossible for MAS to join it since SIA and Thai are already members. Skyteam or Star Alliance, it would really benefit MAS one way or another.

Last year, we were all told of MAS's excellent beautification plan on its First and Business class seats. They changed the seats, lighting, entertainment system among others. They also changed the livery of a few B747 and B777 planes which I must complement although I especally love the blue one. I'm pretty sure that all that would have taken up lots of money which is one part I really can't understand. Didn't know that their finances were already shaky then ? Its not like people would stop flying with them. Then we have overpaid executives and million dollar painting issues. As a last resort, MAS sells of its building in Jalan Sultan Ismail.

The reality is however that MAS would NEVER crumble and fall. Sorry to all MAS haters out there but it just wouldn't happen. MAS happens to be the official national airline of Malaysia. Even if it were to go bankrupt, the government would probably finance the airline to 'jaga muka' so that they do not 'lose face' to Singapore in particular ..

Sorry to all MAS lovers reading this but I definitely still enjoy flying on MAS .. sentimental I guess.