squared
Posts: 352
Joined: Sun May 29, 2005 1:48 am

Air Asia To Take Over Some Of MH's Domestic Routes

Wed Jun 29, 2005 12:18 am

Finally after months of rumours, it appears that AK will take over some of MH's thinner domestic routes. The announcement will likely be made at the end of the month.

MH will continue to fly to key cities, such as PEN, LGK, BKI, & KCH, leaving the rest to AK.

http://www.channelnewsasia.com/stori.../corporatenews/view/153425/1/.html

SQuared
 
leisurejet
Posts: 43
Joined: Fri Jun 10, 2005 8:30 pm

RE: Air Asia To Take Over Some Of MH's Domestic Routes

Wed Jun 29, 2005 6:58 am

I hope AirAsia will be able to fly them to make a profit and not just because they have to, so as to appease whoever....
 
keno
Posts: 1809
Joined: Thu Feb 19, 2004 5:46 pm

RE: Air Asia To Take Over Some Of MH's Domestic Routes

Wed Jun 29, 2005 10:55 am

Quoting SQuared (Thread starter):
MH will continue to fly to key cities, such as PEN, LGK, BKI, & KCH, leaving the rest to AK.

It's not that simple. Nothing has been confirmed yet, so we'll have to wait and see. I'm surprised if MH fully hand over their flights to TGG (Kuala Terengganu) and even KUA (Kuantan) to some extent because these holiday destinations receive considerable feed from MH's international network (especially from SIN).

Quoting Leisurejet (Reply 1):
to make a profit and not just because they have to

When we talk about routes within Peninsular (West) Malaysia, and those linking the Peninsular with Sabah & Sarawak, then they are mostly (sort of) money-making routes (with the exception of KUL-Ipoh).

Routes that "they have to" as you put it would be those serving the interiors of Sabah & Sarawak, whereby MAS is now operating on its fleet of Twin Otters. These routes would be most likely be handed over to another company to operate (perhaps under the state governments) - MAS never made money on these sectors and they are highly subsidised by the govt.

[Edited 2005-06-29 03:58:32]
 
leisurejet
Posts: 43
Joined: Fri Jun 10, 2005 8:30 pm

RE: Air Asia To Take Over Some Of MH's Domestic Routes

Wed Jun 29, 2005 8:09 pm

Thanks for the insight KEno...especially on the "have to" routes...

I agree it would be a surprise if MH do hand over routes such as KUL to TGG and KUA, but I guess they will end up coming to some sort of "arrangement" with AK with regards to dealing with international feeder traffic, do you not think?
 
keno
Posts: 1809
Joined: Thu Feb 19, 2004 5:46 pm

RE: Air Asia To Take Over Some Of MH's Domestic Routes

Wed Jun 29, 2005 8:36 pm

That's true. One of the reasons why the government refused to grant AK the access to the former airport at Subang and moved to KLIA instead so that the combined network of MH & AK would complement each other (despite head-on competition on many routes) to turn KUL into a true hub that it is designed to be.

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