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mercure1
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Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 2:38 pm

Malaysia’s new government continues to look at ways to trim its huge deficit. National carrier Malaysia Airlines, which remains weak despite parent Khazanah pouring $1.5 billion to make it profitable, is a prime target.

Malaysia Mulls Shutting Down or Selling Its Flag Carrier
https://skift.com/2019/03/12/malaysia-m ... g-carrier/

5-years into its "turn-around" plan, seems things are still far from what was planned.
Last edited by mercure1 on Tue Mar 12, 2019 2:47 pm, edited 1 time in total.
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anshabhi
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 2:41 pm

Not happening. State carriers never close
 
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UPlog
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 2:49 pm

Suppose the new government realizes the money pit cannot continue forever when they have other financial pressures and mess from 1MDB to clean up also.
 
EmoticonsAllDay
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 3:05 pm

Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.
 
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lightsaber
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 3:36 pm

If MAS is shut down, it will be a sign of true reform.

I doubt it is worth buying MAS. Not with AirAsia doing so well. It would be better to buy the aircraft on the secondary market and hire pilots at market rate.

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skipness1E
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 3:42 pm

The loss of face in shutting down their flag carrier would be immense.
This is not the West, even Italy hasn't gone that far
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 3:42 pm

EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

Why would SQ want to do that?

SQ is rightsizing itself right now and does not need to buy another airline if all it wants is more narrrowbodies or any other aircraft.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 4:08 pm

mercure1 wrote:
Malaysia Mulls Shutting Down or Selling Its Flag Carrier


Hahahahahaha :rotfl: :rotfl: :rotfl:

As if.

Never gonna happen. There's no way the people in power will give up the ample opportunities to enrich themselves and their friends provided by control of a state-owned airline -- from patronage jobs to lucrative no-bid contracts. And the national airline is a symbol of national prestige so there's always an excuse to keep propping it up!

mercure1 wrote:
5-years into its "turn-around" plan, seems things are still far from what was planned.


I think things are exactly the way they were planned -- there was just a bunch of meaningless hand-waving about how the changes or the lack thereof would actually lead to profit or at least the lack of huge losses. They planned to focus more on regional routes and yet they kept the A380s which have never been a good fit for their network.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 4:51 pm

What about selling the valuable assets to to AirAsia, and them operating a new MH as a premium long-haul subsidiary? The remaining assets and debts could be wiped away in inslovancy. The Malaysian government could forgive/guarantee the remaining unpaid debts in exchange AirAsia protects the jobs of current MH employees. The new MH will be debt free, no longer be held back by government interference, and more free to operate according to market conditions. As previously mentioned the current MH employees will have their jobs preserved, albeit with new working conditions imposed by AirAsia that are necessary to keep the airline competitive with SQ. Finally AirAsia obtains a lower cost full service carrier that could supplement or even replace AirAsiaX. Wins for everyone with just a little shared pain.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 4:57 pm

EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

Having their national carrier bought by Singapore would be the ultimate humiliation for Malaysia... This would surely be the least likely scenario
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 5:38 pm

I've got no beef with MAS but closing it down makes a ton of sense to me.

Malaysia already has a strong an profitable airline in the shape of Air Asia and it doesn't need a subsidised national carrier.

If MAS shut down Air Asia could just acquire whatever routes, frames, slots they wanted and continue service. This would help Malaysia as a whole because they would end up with a stronger carrier both domestically and in the region as a whole.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 6:28 pm

ScottB wrote:

Hahahahahaha :rotfl: :rotfl: :rotfl:

As if.

Never gonna happen. There's no way the people in power will give up the ample opportunities to enrich themselves and their friends provided by control of a state-owned airline -- from patronage jobs to lucrative no-bid contracts. And the national airline is a symbol of national prestige so there's always an excuse to keep propping it up!


With the new PM of Malaysia being straight forward, I don't think it might not happen. The PM has been really cautious about each and every step regarding the growth of Malaysia and ASEAN to some extent. If he thinks MAS is more of a pain in the a** hindering development then there is a real possibility thay he might order MAS to shut down.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 7:30 pm

The entire restructuring program has been a bit of fantasy with 4 CEOs in 6-years including two big names - Christoph Mueller and Peter Bellew.
The company has yet to truly identify a plan and carry it out. The market placement of MAS is hardly clear, with a messy fleet, network and overstaffing still.

If anything, maybe the new government which is already focused on other reforms in the country might have the appetite to make the tough decisions needed.


Anyhow, here is another article - from Bloomberg that adds a bit more color including quote from the prime minister.

Mahathir Weighing Shutdown or Sale of Malaysia Airlines
https://www.bloomberg.com/news/articles ... a-airlines
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 7:35 pm

I wonder if BA is still interested in the MH A380's? If the whole airline is liquidated, the prices of the remaining aircraft might be more reasonable. I could imagine the planes could be auctioned off using sealed bids.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 8:19 pm

skipness1E wrote:
The loss of face in shutting down their flag carrier would be immense.
This is not the West, even Italy hasn't gone that far


Not that flag carriers haven't happened collapsed before (Sabena, Malev, Olympic, Swissair, Pluna, Nigeria Airways, Cyprus Airways) but I realize that the degree of government ownership or involvement in those varied, and none of those were in Asia.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 8:57 pm

It seems we can't go very long before the financial health and government meddling in the Asian trio of Garuda-Malaysia-Thai is in the news.

Pretty appalling how these guys just limp along, one restructuring plan after another, without any lasting progress.

As someone previously mentioned it might just be for the best to let them finally go and let the market sort it out. Malaysia certainly already has strong airlinks, and giving someone like AirAsia even more traffic rights and opportunity to grow further might be the best for everyone.
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 9:02 pm

alan3 wrote:
Not that flag carriers haven't happened collapsed before (Sabena, Malev, Olympic, Swissair, Pluna, Nigeria Airways, Cyprus Airways) but I realize that the degree of government ownership or involvement in those varied, and none of those were in Asia.


Well, in the case of the European flag carriers which failed, EU rules about government aid to failed companies prohibited the respective governments from pumping cash into those companies in order to keep them afloat. And even in the cases of SN and SR, the Belgian and Swiss governments used subsidiaries of the failed airlines (DAT for SN, Crossair for SR) to relaunch those airlines under slightly different names; DAT even got to use SABENA's SN IATA code!

Nigeria. Airways. Nigeria is ranked in the bottom fifth of nations (from least to most corrupt) by Transparency International. No need to have a national carrier to line your pockets when you can loot directly from the treasury or just take sacks of money from "donors."

Pluna was a small regional carrier when it shut down and the employees had gone on strike. There wasn't much prestige to be saved. One could say the same about SAHSA when it failed.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 9:04 pm

AirbusA6 wrote:
EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

Having their national carrier bought by Singapore would be the ultimate humiliation for Malaysia... This would surely be the least likely scenario


Indeed.

That would bring a huge loss of face and be even more humiliating than the loss, and handling of the loss, of MH370.
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 11:50 pm

I find it ironic that this is the same Malaysian PM who, when in power years ago, happily cut cheques to keep MH afloat to fly to (drum roll please...) JNB, CPT, BUE, YVR, LAX, MEX, ZAG...
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Mar 12, 2019 11:51 pm

Who'd wanna buy it ??
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 12:40 am

eta unknown wrote:
I find it ironic that this is the same Malaysian PM who, when in power years ago, happily cut cheques to keep MH afloat to fly to (drum roll please...) JNB, CPT, BUE, YVR, LAX, MEX, ZAG...


Time changes people. People change with experiences.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 12:56 am

EmoticonsAllDay wrote:
eta unknown wrote:
I find it ironic that this is the same Malaysian PM who, when in power years ago, happily cut cheques to keep MH afloat to fly to (drum roll please...) JNB, CPT, BUE, YVR, LAX, MEX, ZAG...


Time changes people. People change with experiences.


Not this PM. He never ever change, still up to his corrupt ways!

Fact is, this is nothing more than a political stunt made to divert people's attention from the fact that his government is failing badly on administering this country. The economy certainly hasn't picked up, with Malaysia being the only Asian country whose stock market is in the red and investors are shying away due to lack of clear policy making from the yahoos in power.

The only reason why the issue with MAS is rising up is because they had to book massive losses for the sovereign wealth fund, of which MAS was conveniently used as a scapegoat. But what it conveniently hide is the fact that the fund's holdings saw a massive decline simply because of the government's piss poor policies caused the stock market to be spooked!
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 1:07 am

[list=][/list]
F27500 wrote:
Who'd wanna buy it ??


AirAsia might want route authorities, but not the full airline.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 1:27 am

Selling it to AirAsia will be a naive and not so well thought idea. Their previous share swap ended with both MH and AK being hit with RM100million fine each by Malaysia Competition Commission. Tony was very shrewd to agree to the deal, gave himself access to Haneda Int'l Airport and Sydney when MH locked D7 out of the market. He killed of FY jet operation too, which was competing with AK on domestic front although it offered better product and services. Giving it to AK on silver platter will be detrimental for flying public, especially locals who relies heavily to move from Peninsula Malaysia to the East Malaysia vv. Also OD is considerably weak, being propped up by their sugar daddy in Jakarta, God knows when he will pull the plug.They are in the red since inception. Do we want monopoly in Malaysia?? Definitely hell no. Why would he want to saddled himself with MH powerful useless union and add another 11,000 staff (some highly overpaid) when they can hire new staff at cheaper rate? Also who to pay to retrain all MH engineer to deal with Airbus, especially NB operation?

MH really needs to do some real deep soul searching. Perhaps selling it off to equity/ investment firm will be best idea. So long as it remains in government hand be it out in public or under government investment arm Khazanah Nasional, it will continue to bleed. My tax $$$....
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 2:05 am

EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

How about Cathay instead of SIA?
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 2:09 am

Itd make the perfect investment for Etihad.











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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 3:51 am

SQ789 wrote:
EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

How about Cathay instead of SIA?

There's no need for Cathay to buy into MH.
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 4:10 am

Shutting down MAS would solve their A380 problem......... :old:
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 4:44 am

anshabhi wrote:
Not happening. State carriers never close


Malév, Sabena, and Swiss would like a word.
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 4:47 am

If writing down A380's values to make a sale 2 years ago was unpalatable, writing down every asset today isn't going anywhere.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 5:01 am

When an airline "owner" speculates publicly about shutting it down, it is likely to happen, not necessarily because the owner wants it.

After this news, I for one would not make an advance booking. If everyone feels as I do, cash flow will dry up and commercial pressures will force closure. Assets will be sold at fire sale prices. I do think IAG may pick up 5 cheap A380s from this.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 5:06 am

mercure1 wrote:
Malaysia’s new government continues to look at ways to trim its huge deficit. National carrier Malaysia Airlines, which remains weak despite parent Khazanah pouring $1.5 billion to make it profitable, is a prime target.

Malaysia Mulls Shutting Down or Selling Its Flag Carrier
https://skift.com/2019/03/12/malaysia-m ... g-carrier/

5-years into its "turn-around" plan, seems things are still far from what was planned.


A very good move IMO.
Hope the Govt's of India, Italy & South- Africa are listening. No need for such white elephants, when there are more efficient & well-run private airlines to take care of those markets.
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 5:17 am

The proposal fit the current Malaysian PM's narrative that previous leading party was being wasteful and such, I am not sure how much calculation was actually being put into it when they announced this.

If SQ want to buy it, will Malaysia sell it to them?
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 5:31 am

TheFlyingDisk wrote:
SQ789 wrote:
EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

How about Cathay instead of SIA?

There's no need for Cathay to buy into MH.

So who then?
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 5:52 am

SQ789 wrote:
TheFlyingDisk wrote:
SQ789 wrote:
How about Cathay instead of SIA?

There's no need for Cathay to buy into MH.

So who then?


Honestly I don't see any airline with any realistic need for MH to be honest.

The only one that's open to buying MH would be AirAsia, but only to kill a competitor, which means they may take MH's A330, route authorities, and some staff, but will junk the rest

c933103 wrote:
The proposal fit the current Malaysian PM's narrative that previous leading party was being wasteful and such, I am not sure how much calculation was actually being put into it when they announced this.

If SQ want to buy it, will Malaysia sell it to them?


You kidding? One of the first few things the current PM did after taking power was openly antagonize Singapore. Then the new government cancelled the High Speed Rail project between Singapore & Malaysia (they couched it as being "delayed"), and then they raised a protest about Seletar ILS path enroaching into Johor Bahru.

SQ will be buying MH over the PM's dead body. That is, if SQ even wants MH which I sincerely doubt.
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 5:54 am

SQ789 wrote:
EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

How about Cathay instead of SIA?

CX is already talking to HNA about buying HKExpress, as it has publicly announced about the talk a few days ago. It's not going to do multiple acquisitions at the same time.
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 5:57 am

SQ789 wrote:
TheFlyingDisk wrote:
SQ789 wrote:
How about Cathay instead of SIA?

There's no need for Cathay to buy into MH.

So who then?


MH can only be sold to Malaysians. Selling it to any overseas party will be political suicide.
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 6:03 am

AngMoh wrote:
SQ789 wrote:
TheFlyingDisk wrote:
There's no need for Cathay to buy into MH.

So who then?


MH can only be sold to Malaysians. Selling it to any overseas party will be political suicide.


Honestly, I wouldn't mind the current regime committing political suicide... :lol:
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 6:05 am

EmoticonsAllDay wrote:
Maybe SIA could buy MAS like the pre-1972 era? SIA is in need of narrowbodies anyways and MAS has loads of them. Even the widebodies are of the same types operated by SIA (A330, A350, A380). This way MAS don't loose their dignity.

You have absolutely no idea of the "Abang/Adik" (big brother/small brother) mentality of the 2-Ringgit (Malaysian currency) politicians in the "Bolehland" (their misplaced "can do" attitude).
Dignity? On the contrary, they will lose much more than that if taken over by their "little brother".
They will sooner lose their sanity than sellout their soul to their long-expelled "Adik".
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 6:36 am

TheFlyingDisk wrote:
You kidding? One of the first few things the current PM did after taking power was openly antagonize Singapore. Then the new government cancelled the High Speed Rail project between Singapore & Malaysia (they couched it as being "delayed"), and then they raised a protest about Seletar ILS path enroaching into Johor Bahru.

SQ will be buying MH over the PM's dead body. That is, if SQ even wants MH which I sincerely doubt.


Well, the current GoM does not have a free money to spend it on the HSR project, thanks to 1MDB... But I see your point.. To be fair, from the beggining of HSR saga decade ago everybody were talking that this would kill MAS long-haul routes and hand it to SIA on a silver platter, so nobody really believed that this project would be ever completed...
And yes, it seems that Dr M. following his old path in the relations with Spore - you forgot a water treatment topic and territorial water dispute in Johor... On the other hand he has only one year left before Anwar will become the PM (if not jailed again ;) )... then some "delayed" projects can be revived... But to me it is still hard to believe that they will shut MAS down - in current situation to give such joker to UMNO and PAS guys will be a political suicide....
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 6:42 am

eta unknown wrote:
I find it ironic that this is the same Malaysian PM who, when in power years ago, happily cut cheques to keep MH afloat to fly to (drum roll please...) JNB, CPT, BUE, YVR, LAX, MEX, ZAG...



That is a fair point and EZE was a little bit of shuttle to the PM's Argentina ranch. However at the same time this was a bit of a fight for survival. They were always in the top 5 on the Kangaroo routes in the 90s and early 200s, but a few things changed. Their lunch got eaten on short haul by Air Asia, to the East the ME carriers lead by Emirates grew immensely and offered far more destinations to Europe, to the East Cathay launched a big push to the Americas and the rise of the Chinese carriers came too. SIN offered SQ both better connections and a home grown large business market and financial sector KUL just didn't have on the same level. Remember they built those Petronas twin towers in the 1990s? KUL was desperately trying to take its place on the global stage. The population of KUL's greater area is only a little over 2 Million so connecting traffic was vital. Regional Malaysia had nowhere near the average income of Singapore and with that the business demand. It's amazing to think they once flew KUL-DXB-JFK, and KUL-ARN-JFK but the moment the UAE got into full swing... well we all know the story.

The Air Asia idea might not be so bad. MH does long haul and connects to AK short haul. but the question is, does Air Asia need them?
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 6:52 am

It'll actually be perfect for Qantas
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 6:58 am

TheFlyingDisk wrote:
You kidding? One of the first few things the current PM did after taking power was openly antagonize Singapore. Then the new government cancelled the High Speed Rail project between Singapore & Malaysia (they couched it as being "delayed")


Didn't they cancel/"delay" it because of budgetary concerns?
 
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 7:22 am

idp5601 wrote:
TheFlyingDisk wrote:
You kidding? One of the first few things the current PM did after taking power was openly antagonize Singapore. Then the new government cancelled the High Speed Rail project between Singapore & Malaysia (they couched it as being "delayed")


Didn't they cancel/"delay" it because of budgetary concerns?


Nope. Budget concerns are a myth bandied about to cancel projects mooted by the previous administration. The current PM has a big ego problem, and thus he's cancelling everything to ensure that nobody outshines him. Unfortunately many of his voters are dumb enough to believe in his sweet talk. I can talk all day about how shitty the current regime is, even compared to the previous administration, but then it will derail the thread so I rather not.

Tsveto4nik wrote:
To be fair, from the beggining of HSR saga decade ago everybody were talking that this would kill MAS long-haul routes and hand it to SIA on a silver platter, so nobody really believed that this project would be ever completed...


The new thinking is that the HSR will bring better long term benefits for the nation as a whole, since companies now have easy connections into the city, increasing Kuala Lumpur's attractiveness as a business hub. Maybe in the short term MH will be affected, but I doubt it.
I FLY KLM+ALASKA+QATAR+MALAYSIA+AIRASIA+MALINDO
 
Pampot70
Posts: 31
Joined: Wed Jun 15, 2016 6:01 am

Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 8:40 am

TheFlyingDisk wrote:
idp5601 wrote:
TheFlyingDisk wrote:
You kidding? One of the first few things the current PM did after taking power was openly antagonize Singapore. Then the new government cancelled the High Speed Rail project between Singapore & Malaysia (they couched it as being "delayed")


Didn't they cancel/"delay" it because of budgetary concerns?


Nope. Budget concerns are a myth bandied about to cancel projects mooted by the previous administration. The current PM has a big ego problem, and thus he's cancelling everything to ensure that nobody outshines him. Unfortunately many of his voters are dumb enough to believe in his sweet talk. I can talk all day about how shitty the current regime is, even compared to the previous administration, but then it will derail the thread so I rather not.

Tsveto4nik wrote:
To be fair, from the beggining of HSR saga decade ago everybody were talking that this would kill MAS long-haul routes and hand it to SIA on a silver platter, so nobody really believed that this project would be ever completed...


The new thinking is that the HSR will bring better long term benefits for the nation as a whole, since companies now have easy connections into the city, increasing Kuala Lumpur's attractiveness as a business hub. Maybe in the short term MH will be affected, but I doubt it.



No bloody high speed link to KL would increase its attractiveness. Are you Jho Low in disguise? Whether or no, please start contributing in person to fill the deficit by Najib and his thugs. Thanks.
 
AirbusA6
Posts: 1615
Joined: Tue Apr 26, 2005 5:53 am

Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 9:38 am

Lufthansa wrote:
eta unknown wrote:
I find it ironic that this is the same Malaysian PM who, when in power years ago, happily cut cheques to keep MH afloat to fly to (drum roll please...) JNB, CPT, BUE, YVR, LAX, MEX, ZAG...



That is a fair point and EZE was a little bit of shuttle to the PM's Argentina ranch. However at the same time this was a bit of a fight for survival. They were always in the top 5 on the Kangaroo routes in the 90s and early 200s, but a few things changed. Their lunch got eaten on short haul by Air Asia, to the East the ME carriers lead by Emirates grew immensely and offered far more destinations to Europe, to the East Cathay launched a big push to the Americas and the rise of the Chinese carriers came too. SIN offered SQ both better connections and a home grown large business market and financial sector KUL just didn't have on the same level. Remember they built those Petronas twin towers in the 1990s? KUL was desperately trying to take its place on the global stage. The population of KUL's greater area is only a little over 2 Million so connecting traffic was vital. Regional Malaysia had nowhere near the average income of Singapore and with that the business demand. It's amazing to think they once flew KUL-DXB-JFK, and KUL-ARN-JFK but the moment the UAE got into full swing... well we all know the story.

The Air Asia idea might not be so bad. MH does long haul and connects to AK short haul. but the question is, does Air Asia need them?


The Air Asia business model is a bit different though, being a point to point low cost carrier. Indeed have Air Asia ever successfully run long haul flights?

Just come back from the far east on MH funnily, a 2 week holiday in Vietnam, so lots of airline options in the region. I ended up on MH, and took the opportunity for a couple of days in KL, so the Malaysian economy did get some benefit from me choosing MH. I wouldn't have chosen a potential MH/AK option if it meant arriving at the KUL low cost terminal from SGN and having to check in again at the main terminal though.
it's the bus to stansted (now renamed National Express a6 to ruin my username)
 
juliuswong
Moderator
Posts: 1596
Joined: Wed Dec 14, 2016 3:22 am

Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 10:05 am

TheFlyingDisk wrote:
idp5601 wrote:
TheFlyingDisk wrote:
You kidding? One of the first few things the current PM did after taking power was openly antagonize Singapore. Then the new government cancelled the High Speed Rail project between Singapore & Malaysia (they couched it as being "delayed")


Didn't they cancel/"delay" it because of budgetary concerns?


Nope. Budget concerns are a myth bandied about to cancel projects mooted by the previous administration. The current PM has a big ego problem, and thus he's cancelling everything to ensure that nobody outshines him. Unfortunately many of his voters are dumb enough to believe in his sweet talk. I can talk all day about how shitty the current regime is, even compared to the previous administration, but then it will derail the thread so I rather not.

Literally LOL-ed at this comment. Tough luck, try again in four years' time.
- Life is a journey, travel it well -
 
filipinoavgeek
Posts: 187
Joined: Mon Mar 04, 2019 1:18 am

Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 10:11 am

AirbusA6 wrote:
The Air Asia business model is a bit different though, being a point to point low cost carrier. Indeed have Air Asia ever successfully run long haul flights?

Is AirAsia X struggling? I know that they had recently cut some destinations and quit Europe long ago and might not come back in the short-to-medium term, but I was under the impression that their remaining routes were still doing fine.
 
filipinoavgeek
Posts: 187
Joined: Mon Mar 04, 2019 1:18 am

Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 10:11 am

AirbusA6 wrote:
The Air Asia business model is a bit different though, being a point to point low cost carrier. Indeed have Air Asia ever successfully run long haul flights?

Is AirAsia X struggling? I know that they had recently cut some destinations and quit Europe long ago and might not come back in the short-to-medium term, but I was under the impression that their remaining routes were still doing fine.
 
chiad
Posts: 1182
Joined: Tue May 16, 2006 4:24 pm

Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Mar 13, 2019 10:12 am

With the ongoing B737MAX ordeal I would suspect MAS' MAX order will be cancelled.

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