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Malaysia Airlines Competes With AirAsia  
User currently offlineMas777 From United Kingdom, joined Jul 1999, 2935 posts, RR: 6
Posted (11 years 11 months 2 weeks 5 days 15 hours ago) and read 2476 times:

Although Malaysia as a country enjoys some of the lowest domestic airfares in the world - to compete with AirAsia (the low-cost airline in Malaysia), MAS has slashed thousands of domestic fares to an overwhelming response...here is its press release from http://www.malaysiaairlines.com.my


15 Aug 2002 - Malaysia Airlines kick-off the first day of the SuperSaver fare offer with a more than overwhelming response from the public. Additional staff were deployed to both the call centers in Kuala Lumpur and Kuching to cope with the tremendous demand.

Reservations lines were ringing at the stroke of midnight where the call center staff received more than 2,400 bookings within the first two hours of the SuperSaver Fare.

A status check at 1300 hours today showed that the call volume increased by 65%. It is anticipated that both the Kuala Lumpur call center and the Kuching call center would have received a total of 23,000 calls by the end of the day.

Enquiries for the SuperSaver Fare bookings for flights between Peninsular Malaysia - Sarawak registered the highest volume at 37.4%, followed by flights within Peninsular Malaysia at 32.5% and flights between Peninsular Malaysia - Sabah at 30.1%.

11 replies: All unread, jump to last
 
User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 33
Reply 1, posted (11 years 11 months 2 weeks 5 days 15 hours ago) and read 2448 times:

Does MAS match the AirAsia flights or do they just offer low special fares for the domestic flights?


Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
User currently offlineMas777 From United Kingdom, joined Jul 1999, 2935 posts, RR: 6
Reply 2, posted (11 years 11 months 2 weeks 5 days 14 hours ago) and read 2437 times:

I just don't see how either can make any money on most of these routes - AirAsia fares can be as low as RM34.99 for with another RM5 off for on-line bookings! So for under USD10 you can get on an AirAsia flight...!!!

MAS has not published their SuperSaver fares on the net as far as I am aware.


User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 33
Reply 3, posted (11 years 11 months 2 weeks 5 days 14 hours ago) and read 2428 times:

I wonder if they are going to match the Air Asia flights.

They don't make money at all but its about Market shares and Air Asia is going to need them. But mainly for tourists MAS is strong anyway because normally you pay the same fare to KUL or other destinations in Peninsular Malaysia if you have an International ticket. This gives of course a low yield on the domestic flights and they make a big loss.
Domestic market shares are getting more important than ever since people in Malaysia tend to travel a lot within their own country.

I wonder too how Air Asia can cover their costs with such fares. I think it is based on EasyJet, lets say if the demand is big fares are much higher than the special once published and maybe even higher than the MAS fares, otherwise it won't work!



Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
User currently offlineOdiE From United States of America, joined Jan 2001, 1641 posts, RR: 1
Reply 4, posted (11 years 11 months 2 weeks 3 days 17 hours ago) and read 2359 times:

Air Asia is inaugurating flights from/to KUL to/from Tawau, Sabah this Sept. 5 making it the first ever direct nonstop flight between these two cities in Malaysian history. Probably this will make MAS to provide the a new service between KUL and Tawau.

Some government officials suggested that the domestic operations to be splitted between MAS and Air Asia. I don't see how this can work, especially if both of them want to fly on the profitable routes eg., KUL-BKI/KCH/PEN. Who would want to fly say PEN-KCH/BKI/KHB, where traffic is low? However, MAS have an advantage over Air Asia being the fact that MAS have almost infinite supply of funds from the Malaysian Government where as Air Asia doesn't.

It's going to be interesting when Air Asia takes on MAS on regional routes, where MAS is making profit. The problem will arise if the Malaysian government is not willing to give landing rights to Air Asia, but instead to MAS.


User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 33
Reply 5, posted (11 years 11 months 2 weeks 3 days 16 hours ago) and read 2354 times:

OdiE, does MAS make profit on a Domestic flight within Malaysia? Don't think so at all.

No doubt, it would be great to see Air Asia outside of Malysia!



Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
User currently offlineJe89_w From United States of America, joined Mar 2002, 2360 posts, RR: 9
Reply 6, posted (11 years 11 months 2 weeks 3 days 16 hours ago) and read 2345 times:
AIRLINERS.NET CREW
PHOTO SCREENER

It rarely does fly to Singapore for test flights.  Big grin


View Large View Medium
Click here for bigger photo!

Photo © Je89 W.



View Large View Medium
Click here for bigger photo!

Photo © Aaron Liu



User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 33
Reply 7, posted (11 years 11 months 2 weeks 3 days 15 hours ago) and read 2343 times:

Well, I doubt if they could make money on KUL-SIN as well.
Didn't know that there are pictures of Air Asia in SIN, txs Je89_w!



Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
User currently offlineOdiE From United States of America, joined Jan 2001, 1641 posts, RR: 1
Reply 8, posted (11 years 11 months 2 weeks 3 days 6 hours ago) and read 2308 times:

Swissgabe: I think flights to East Malaysia, eg. KCH and BKI are making money, probably even to cities such as Penang since there are plenty of connecting traffic that make it profitable. From what I know, the worst performing sectors are probably from rural air services. Air Asia is making money now and they are only serving Malaysia, so I would assume some of these key city-pairs are making money for MAS.

User currently offlineSr3496 From Switzerland, joined May 2000, 792 posts, RR: 20
Reply 9, posted (11 years 11 months 2 weeks 3 days 4 hours ago) and read 2296 times:

I had a flight with MAS from Miri to Mulu (within Sarawak). This is exactly a rural air service just as OliE said. The aircraft was a DHC-6 Twin Otter, price as low as 69 RM and we were only 5 pax...I'm not sure if they can be profitable with such low fares...
The transport on the ground from MIri to Mulu would have been more expensive then this short flight.

Isn't AirAsia thinking about going to court against the new low prices of MAS? I think I heard something like that when I was in Malaysia earlier this month.


User currently offlineJe89_w From United States of America, joined Mar 2002, 2360 posts, RR: 9
Reply 10, posted (11 years 11 months 2 weeks 2 days 20 hours ago) and read 2248 times:
AIRLINERS.NET CREW
PHOTO SCREENER

And here are some photos of Air Asia's 747.


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Click here for bigger photo!

Photo © Konstantin von Wedelstaedt



View Large View Medium
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Photo © George Polfliet



Je89 Big grin


User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 33
Reply 11, posted (11 years 11 months 2 weeks 2 days 16 hours ago) and read 2238 times:

OdiE
I think especially the routes where you have many connecting traffic from long-hauls don't make a lot of money because the sectorwise revenue is very small if you compare it with the normal price including intl. sectors. Lets say LHR-KUL-PEN vv. for 1000USD gives 460USD for LHR-KUL, 20 USD for KUL-PEN and 20 again for PEN-KUL and 460USD for KUL-LHR. (figures just as example) and as you see the USD 20 would be much lower than the normal fares.

The routes where they could do money is on the once where they have a lot of point to point traffic because they mostly have to pay fullfare but this might change with the AirAsia low fares.

OdiE/Sr3496
With the rural air services I full agree, especially when I consider that I flew alone in a Twin Otter from KUD to BKI!

Je89_w
Unfortunately you only see them during Hadj season and they are only leases, same goes for the MD 11 they had for Hadj flights. Would love to see them with some long-hauls but lets dream  Smile/happy/getting dizzy



Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
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