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Aug 1 - A Historical Day In Malaysian Aviation  
User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Posted (8 years 2 months 3 days 2 hours ago) and read 4585 times:

Tuesday, August 1st 2006 marks a history in the Malaysian aviation. Today, the country's domestic air rationalisation takes effect. I was lucky to be flying on "the day", from KCH (a major destination in Malaysia) which was well served by MH, AK and the new airline, Fly Asian Xpress (FAX).

Although the reports on the first day of the exercize will only be available tomorrow, the day saw the most number of aviation related articles being published in local dailies in (perhaps) the history. Here are some which I managed to glance through today, both favourable and unfavourable:

"MH will increase its domestic fares by an average of 15% for economy class and 25% for business class in two weeks – the first increase for local routes in 14 years."

"From today (August 1st) MH is increasing its fuel surcharges by MYR 5 to MYR 51 and imposing a MYR 14 administration fee for each ticket issued."

"Malaysia’s third national airline - Fly Asian Xpress (FAX) - soared into the skies Tuesday, pledging to deliver efficient flight services to some 700,000 people at low-cost fares despite the frequent fuel price hike. FAX will operate its 22 turboprop routes in Sabah and Sarawak using MH's former fleet of seven Fokkers 50s (50 seats) and five Twin Otters (19 seats)."

"AK has been given the rights to fly to Xiamen and Shenzhen in China from BKI. Quoting the Malaysian Transport Minister, Datuk Seri Chan Kong Choy in his speech to the Chinese Ambassador to Malaysia, "We have just given approval, so it is up to AK when it wanted to start operating these two additional rights."

"It will not be until Aug 14 before MH can resume its JHB-KCH flights. The route is among three domestic routes which MH will continue to service under the new aviation policy. The others are KUL-Tawau and KUL-Sandakan."

"MH would provide support in the form of 67 pilots and engineers, who have been seconded to FAX until such time that FAX can take over properly."

"The day MH saw its workforce reduced by 2,000 in a snap. CEO Idris Jala expressed his sadness over the fact that 2,000 people left the company yesterday, after opting the Mutual Separation Scheme. "It's a very painful process and today (yesterday) about 2,000 people are leaving. It's a very emotional period for all of us" he said."

What a day!

30 replies: All unread, showing first 25:
 
User currently offlineCentrair From Japan, joined Jan 2005, 3598 posts, RR: 20
Reply 1, posted (8 years 2 months 3 days 1 hour ago) and read 4556 times:

I am not clear what this day is all about?

Lots of great things for LLCs but nothing good for MH day?



Yes...I am not a KIX fan. Let's Japanese Aviation!
User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 2, posted (8 years 2 months 3 days 1 hour ago) and read 4521 times:

Quoting Centrair (Reply 1):
I am not clear what this day is all about?

In short, August 1st is the day when Malaysia's new aviation policy takes effect. MH will only operates 22 domestic routes from 116 previously. The other routes will now be served by AK. The day also saw the creation of Malaysia's third national airlines, Fly Asian Xpress (FAX). This was achieved after months of negotiation, lobbying and discussion between MH, AK and the Malaysian govenment.

Quoting Centrair (Reply 1):
but nothing good for MH day?

- MH will no longer have to bear million Ringgit of losses on its domestic operation.
- MH can price its own ticket (previously it was controlled by the government - which contributed to the losses). This was reflected in a full front headline of the fare increase - THE FIRST IN 14 YEARS.
- MH will no longer have to maintain its F50 and Twin Otter flights (saving in maintenance related expenditures).
- MH can fix its own frequencies and airplane types to any of the 22 destinations (previously it was again controlled by the government).
- MH will take over the management of the domestic sector profit and loss statement from its parent, a government agency called Penerbangan Nasional Berhad.
- The new aviation policy is a direct response to MH's Business Turnaround Plan. The realization of the policy means the Government, AK, FAX and everybody are supporting MH in achieving the Plan.
- MH will terminate 4,200 of its employees of which 2,000 has been leaving yesterday (means lesser salary has to be paid. MH is highly over employed - due to its government owned status).

In summary, MH is gaining a lot.


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 3, posted (8 years 2 months 2 days 1 hour ago) and read 4342 times:

Following yesterday's news, MH published a detailed flight frequencies for its entire Malaysian domestic operation. Have a look.

Big version: Width: 234 Height: 750 File size: 58kb
MH new frequencies for its Malaysian domestic operation


User currently offlineCentrair From Japan, joined Jan 2005, 3598 posts, RR: 20
Reply 4, posted (8 years 2 months 2 days 1 hour ago) and read 4326 times:

Thank you for the explaination. This will certainly save MH a lot of money. Essentially they will become an almost exlusive international carrier.

- Cutting domestic
- Cutting unnecessary aircraft
- Cutting unprofitable routes

Good luck MH. Hope they can recover to become a strong carrier again, get some new aircraft, and join Skyteam.



Yes...I am not a KIX fan. Let's Japanese Aviation!
User currently offlineLhrmaccoll From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 2 months 2 days 1 hour ago) and read 4326 times:

Quoting 9MMAR (Reply 2):
MH will only operates 22 domestic routes from 116 previously.

Blimey, so have MH hit the rocks then?
I heard a while back that they were selling off A/C to save cash?


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 6, posted (8 years 2 months 2 days 1 hour ago) and read 4298 times:

Quoting Centrair (Reply 4):
Hope they can recover to become a strong carrier again, get some new aircraft, and join Skyteam.

I am sharing the same thought as well Centrair. Their financial planning is to reduce their losses in FY 2006 (to some acceptable amount) and get back in black in FY 2007.

Their average age of aircrafts is 10+ years old. They really need to switch to newer aircrafts.


User currently offlineSkyone From Mexico, joined Feb 2001, 427 posts, RR: 0
Reply 7, posted (8 years 2 months 2 days 1 hour ago) and read 4298 times:

What will they do with all the aircrafts they have? If they are closing that many routes, they will sure have tons of airplanes in the ground. Are they returning them to the lessors?

User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 8, posted (8 years 2 months 2 days 1 hour ago) and read 4263 times:

Quoting Lhrmaccoll (Reply 5):
I heard a while back that they were selling off A/C to save cash?

Actually MH was selling their fleets (not sure whether partly or entirely) to its parent, a government agency called Penerbangan Nasional Berhad and leased it back from them (with a favourable rates to MH) during their restructuring in the late 1990s if I was not mistaken.

But MH did sold its 40 storey corporate headquaters building in downtown Kuala Lumpur a couple of months back to raise some cash.


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 9, posted (8 years 2 months 2 days ago) and read 4239 times:

Quoting Skyone (Reply 7):
What will they do with all the aircrafts they have? If they are closing that many routes, they will sure have tons of airplanes in the ground. Are they returning them to the lessors?

All their F50s and Twin Otters are now operated by Malaysia's newest airline, Fly Asian Xpress (FAX).

I don't know what will happened to their spare 737s (aircraft type which was used for MH's domestic operation. Previously they operated 39 of these frame).


User currently offlineB742 From United Kingdom, joined Mar 2005, 3768 posts, RR: 19
Reply 10, posted (8 years 2 months 2 days ago) and read 4206 times:

August the 1st has be long coming in the press in Malaysia, I have just got back from a 3 week stay in the country. The newspapers over there seem to always have a story either on AK/FAX or MH!

The Malaysian's seem to be proud of their national airlines, they even have the MAS 777 on every 10RM note Big grin

I hope things can work out for the best for MH, although I wish they would upgrade some of their routes, FRA for example is only served 5x weekly, I would love to see a Daily service, I'm sure there is enough demand for KUL-FRA  Smile

Can anyone give me some ideas as to what will happen to the current fleet of MAS a/c!

So far I've read that 2 A330-200's will head for Vietnam Airlines and one 777-200 will head for Air India. Is this true, will there be any others?

Having flown out of KLIA on the 1st, I was able to see the new route map for MH, there is certainly a big difference from July's edition. Although I must admit MH do still have a reasonable amount of Domestic routes left.

In July's edition of "Going Places" (MH's inflight magazine they say they have 17 747-4H6's. Whereas in August's edition they say they have 13. I did not know any had left the fleet. Where have they gone, or are they still there and it's a typo?

MH actualy still have the F50's and Twin Otters on the fleet page for August, which is rather strange  Confused

Will any of MH's 11 333's and 39 734's go from the fleet?

Rob!  wave 


User currently offlineSkyone From Mexico, joined Feb 2001, 427 posts, RR: 0
Reply 11, posted (8 years 2 months 2 days ago) and read 4186 times:

Quoting 9MMAR (Reply 9):
I don't know what will happened to their spare 737s (aircraft type which was used for MH's domestic operation. Previously they operated 39 of these frame).

Thanks for the info. I remember one of my mexican pilot friends loosing his job here in Mexico after Taesa went down and getting a job in Malasia with MH as a captain flying 737s. He told me he always had a great time, as he usualy got to play football at an island airport while he waited for his aircarft to arrive as he was going to take back the aircraft on an specific route. He told me the government use subsidies on almost all routes so he didn´t even care if the aircraft was empty of paying passengers. That all changed when he left MH and went to work for Excell aviation in UK (based at Gatwick) as things were the oposit. But I would love to travel around Malasia, although I think that with this news, flying will became a lot more expensive.


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 12, posted (8 years 2 months 2 days ago) and read 4166 times:

Hi Rob,

Quoting B742 (Reply 10):
August the 1st has be long coming in the press in Malaysia

Indeed it was a BIG day!

Quoting B742 (Reply 10):
I have just got back from a 3 week stay in the country.

I hope you had the best time of your life in our beautiful country.

Quoting B742 (Reply 10):
The Malaysian's seem to be proud of their national airlines, they even have the MAS 777 on every 10RM note

We are very proud of MH, AK and FAX. We are a small country with big ambitions. The red Malaysian Ringgit 10 notes is featuring "Transportation" as its theme. That's the reason for MH's B772 at the back of the notes.(Malaysia's Ringgit notes featured "Industries" as the theme, the blue MYR 1 for "Tourism", the light green MYR 5 for "Construction", the dark green MYR 50 for "Petroleum" and the purple MYR 100 for "Automobile").

Quoting B742 (Reply 10):
MH actualy still have the F50's and Twin Otters on the fleet page for August, which is rather strange

Yes, strange. All the F50s and Twin Otters were now served by FAX, a subsidiary of AK. Maybe they lend it to FAX? There is nothing being mentioned of how FAX received its turboprop fleet whether they buy it from MH, Penerbangan Nasional Berhad (MH's parent) or they leased it from Penerbangan Nasional Berhad. MH is seconding 67 of its pilots and engineers to FAX to ease the 1 day old carrier's operation. Or maybe the "Going Places" editorial team missed out some updated info? MH's worldwide office addresses in "Going Places" was not updated for ages.


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 13, posted (8 years 2 months 2 days ago) and read 4156 times:

Quoting Skyone (Reply 11):
He told me the government use subsidies on almost all routes so he didn´t even care if the aircraft was empty of paying passengers.

This was what AK constantly complaining about as they (MH and AK) did not compete on a fair ground. This was also one of the major issue which led to the implementation of the new domestic aviation policy.


User currently offlineSkyone From Mexico, joined Feb 2001, 427 posts, RR: 0
Reply 14, posted (8 years 2 months 2 days ago) and read 4146 times:

Quoting 9MMAR (Reply 13):
This was what AK constantly complaining about as they (MH and AK) did not compete on a fair ground. This was also one of the major issue which led to the implementation of the new domestic aviation policy.

Thanks for clearing my sight. I am in favor of competition, as it lets companies develop and become more consient of cost structures. Good to see the government saw this two after a couple of time. So wish well to the airline industry down in Malasia.


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 15, posted (8 years 2 months 2 days ago) and read 4135 times:

Quoting Skyone (Reply 11):
But I would love to travel around Malasia

You are most welcome!

Quoting Skyone (Reply 11):
flying will became a lot more expensive.

So far yes, on MH. But AK will always be much cheaper.


User currently offlineSkyone From Mexico, joined Feb 2001, 427 posts, RR: 0
Reply 16, posted (8 years 2 months 1 day 23 hours ago) and read 4118 times:

Quoting 9MMAR (Reply 15):
You are most welcome!

Yes, actualy I am planing a trip to Asia for the end of the year, as I am a student againg (MBA) and this will be the only time I get lots of time to travel. Well, if I go there men, I will write you so that you can tell me which places to visit.


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 17, posted (8 years 2 months 1 day 23 hours ago) and read 4105 times:

Quoting Skyone (Reply 14):
I am in favor of competition, as it lets companies develop and become more consient of cost structures.

Me too.

Quoting Skyone (Reply 14):
Good to see the government saw this two after a couple of time.

I hope they won't interfere. (But they have just did). In today's daily, the government had ordered MH to fly from PEN to Langkawi, a two top vacation islands on the nothern part of the west coast of Peninsular Malaysia. The islands are close to each other. The route was closed by MH upon the implementation of the new aviation policy but beginning August 14th, MH will re commence this route back as the government has ordered them to do so. I am not sure about the load on this route. Being government owned, MH can't have much to say should they unfavour the decision.


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 18, posted (8 years 2 months 1 day 23 hours ago) and read 4091 times:

Quoting Skyone (Reply 16):
Well, if I go there men, I will write you so that you can tell me which places to visit.

Sure, I would be more than glad.


User currently offlineMH1402 From Malaysia, joined Jun 2006, 123 posts, RR: 3
Reply 19, posted (8 years 2 months 1 day 17 hours ago) and read 3982 times:

Quoting B742 (Reply 10):
I hope things can work out for the best for MH, although I wish they would upgrade some of their routes, FRA for example is only served 5x weekly, I would love to see a Daily service, I'm sure there is enough demand for KUL-FRA Smile

MH is just cutting their frequencies to FRA to 5 times weekly early this year as oppose to 7 times weekly. In April if I am not mistaken. As a frequent KUL-FRA traveller on board MH I can safely say that there's only 60% load factor on this route during off season period while MH serve FRA 7 times weekly. The load factor seems increasing after the frequency cut.



For the King and country...
User currently offlineCXA330300 From South Africa, joined May 2004, 1563 posts, RR: 2
Reply 20, posted (8 years 2 months 1 day 17 hours ago) and read 3971 times:

Will this new airline be affiliated with MH's FFP?

Good luck to MH-it's a great airline from a fantastic country, and I sincerely hope they get over this hurdle and join SkyTeam!

Quoting 9MMAR (Reply 17):
In today's daily, the government had ordered MH to fly from PEN to Langkawi, a two top vacation islands on the nothern part of the west coast of Peninsular Malaysia. The islands are close to each other.

Isn't there a ferry service?

Quoting Centrair (Reply 4):
Cutting unprofitable routes

Did they cut JNB?



The sky is the limit as long as you can stay there
User currently offlineMH1402 From Malaysia, joined Jun 2006, 123 posts, RR: 3
Reply 21, posted (8 years 2 months 1 day 16 hours ago) and read 3933 times:

Quoting CXA330300 (Reply 20):
Did they cut JNB?

Probably not. As MH is the only Asian's Airlines to fly to EZE, via CPT and JNB They plan to fully utilise the route and make it lucrative. So more promotion are expected.  Smile



For the King and country...
User currently offline6thfreedom From Bermuda, joined Sep 2004, 3329 posts, RR: 20
Reply 22, posted (8 years 2 months 1 day 4 hours ago) and read 3800 times:

Apart from FCO, is MH planning to bolster any other of their ops?

also, does anyone know how many aircraft are surplus to their needs now?

with OS suspending ops, I would have thought the timing would be good to look at adding SYD and MEL capacity?
perhaps 3 daily with B772 to each destination....


User currently offline9MMAR From Malaysia, joined Jul 2006, 2110 posts, RR: 18
Reply 23, posted (8 years 2 months 1 day 4 hours ago) and read 3757 times:

Quoting CXA330300 (Reply 20):
Will this new airline be affiliated with MH's FFP?

You mean FAX? No they are not affiliated with MH. They are a subsidiary of AK. AK doesn't have any FFP.

Quoting CXA330300 (Reply 20):
Isn't there a ferry service?

Yes, there are. But the government insisted that MH should operates the route as many tourists prefer to fly to both islands.

Quoting CXA330300 (Reply 20):
Did they cut JNB?

So far, after 2 rounds of axing, JNB is still in their network. I am not sure whether there will be the 3rd round of axing by MH or not.

Quoting 6thfreedom (Reply 22):
does anyone know how many aircraft are surplus to their needs now?

From my reading, I found that MH only needing about 22 B734s for its present operation. The remaining 17 B734s I believe would be put on lease by Penerbangan Nasional Berhad (MH's parent).


User currently offlineZK-NBT From New Zealand, joined Oct 2000, 5344 posts, RR: 11
Reply 24, posted (8 years 1 month 3 weeks 6 days 15 hours ago) and read 3621 times:

Quoting 6thfreedom (Reply 22):
with OS suspending ops, I would have thought the timing would be good to look at adding SYD and MEL capacity?
perhaps 3 daily with B772 to each destination....

Problem here is basically that MH doesn't have enough 772's.

I'd more likely see at this stage with no spare 777 capacity SYD going to a double daily 744. And MEL maybe the same atleast in the short term.

AKL is now only 5x weekly and is loaded for that over the Northern Winter aswell which surprises me.


25 6thfreedom : Yes, that is the case. For NWS06, MEL and SYD get 1 x B744 and 1 x B772 daily.
26 9V-SVA : Won't AK require some B737s to cope with the added routes? I presume they are taking some 734s, no?
27 9MMAR : I am thinking the same too. But the frames should undergo major refurbishment to suit AK's format first. C class seats have to be removed, woolen Y s
28 Post contains links 9MMAR : One week after the domestic rationalisation policy took effects saw both MH and AK in a high profile media advertisements war. http://biz.thestar.com.
29 Skyone : Men, do you know what will happen to the famous money looser route that was subsidise by the government of your country. I mean, the Southafrica-Argen
30 9MMAR : Well, you stand a high chance of performing the journey Skyone. Did your brother thell you about the loads?
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