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LAXintl
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Sep 24, 2020 5:04 pm

MAS has delayed bond payments of 1.5 billion ringgit (US$360 million) originally due September 30 until March 31 2021. Carrier continues to work with Khazanah Nasional for support to ride out the crisis.

https://www.nasdaq.com/articles/malaysi ... 2020-09-23
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LAXintl
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Re: Malaysia Mulls Shutting Down or Selling MAS

Fri Oct 02, 2020 7:45 pm

Malaysia Aviation Group said in a letter to lessors the group is unlikely to be able to make payments owed after November 2020 unless it receives more funding from state fund Khazanah.
In the absence of an implemented restructuring by the end of 2020, Khazanah “intends to divert all efforts and funds to an alternative company with an existing air operator’s permit to ensure connectivity for Malaysia.”

https://www.bloomberg.com/news/articles ... ic-worsens
https://www.flightglobal.com/airlines/p ... 37.article
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TWA85
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Re: Malaysia Mulls Shutting Down or Selling MAS

Fri Oct 02, 2020 8:03 pm

Could Air Asia become the new national carrier for Malaysia?
 
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mercure1
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Oct 04, 2020 4:38 pm

Sounds like Khazanah Nasional fund might be giving up on Malaysia Airlines in the current form as its an endless money pit.

I saw in a report the airline was losing an average of USD$84mil per month, and only had $88mil in its own liquidity plus access to $139mil remaining from the Khazanah wealth fund.

Obviously, Khazanah plan to sell the airline to a strategic partner is dead in the water during these times.

Guess Malaysia needs to decide how important it is to maintain MAS and its workforce.
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chonetsao
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Oct 04, 2020 6:37 pm

TWA85 wrote:
Could Air Asia become the new national carrier for Malaysia?


I doubt it. Air Asia will be considered as a success in Malaysia, but there is special feelings (especially among ruling class) regarding MAS that Air Asia just can not replace. We will have to see how the Malaysia government will tussle this out. My bet is on the MH side that eventually it will be saved but the devil is in the details.
 
xwb777
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Oct 04, 2020 6:59 pm

Its time to liquidate the airline and start a new airline with a new management. The government or board of directors can negotiate with the aircraft manufacturers (Airbus and Boeing) on current future deliveries and with the lessors (if the current fleet is on lease) on a settlement.

The airline in its current state is a heavy burden on all those involved. The COVID19 crisis is just expediting in closing the airline’s coffin and pronouncing its death.

Note to airline Management: I am ready to help in managing the airline :biggrin:
 
eamondzhang
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Oct 04, 2020 9:42 pm

TWA85 wrote:
Could Air Asia become the new national carrier for Malaysia?

Not going to happen when they themselves are in huge financial trouble right now. Heck they had at least 10 chances over the past years but this never ever happene. I doubt anything changes.

Michael
 
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TheFlyingDisk
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Oct 05, 2020 4:23 am

Given the topsy turvy state of the Malaysian government today, there's definitely paralysis in Khazanah & MH's status is on the balance.

On one hand the government could just wash their hands on this and let the airline go under. But then the job losses would be in the five figure range - not good for the current government who is trying to consolidate their power.

On the other hand, they can continue to sink Khazanah's money into the airline. But then the question is until when will this continue?

As for AirAsia, they're not in the best shape either. They've already cut down on staff and is planning to cut down even further. My brother in law is sleeping with one eye open, so to speak, and he's in a critical department for AK. They're not in a position to scoop up after MH at this time.
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Oct 05, 2020 5:45 am

All over the world, airlines are shrinking and closing down. With current levels of demand and available routes to fly, both MH and Airasia Group airlines need to downsize. The MAG management must therefore make proposals to Khazanah to downsize the airline and cut the cash drain. This probably means a smaller fleet with lower flight frequencies and further cutting on routes with very low passenger/cargo demand. Under the current environment, they could perhaps also consider increasing their fleet of cargo aircraft. They can convert their B738s and A333s into cargo carrying aircraft.
 
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mercure1
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sat Oct 10, 2020 4:48 pm

A group of leasing companies has rejected a restructuring plan put forward by Malaysia Airlines, bringing the state carrier closer to a showdown over its future. Lessors claiming to represent 70% of the airplanes and engines leased to the airline group have called the plan "inappropriate and fatally flawed"
The airline group is seeking to implement the restructuring plan through a UK court process, according to sources.

Lessors reject Malaysia Airlines restructuring plan
https://www.theedgemarkets.com/article/ ... uring-plan
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filipinoavgeek
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sat Oct 10, 2020 5:18 pm

mercure1 wrote:
A group of leasing companies has rejected a restructuring plan put forward by Malaysia Airlines, bringing the state carrier closer to a showdown over its future. Lessors claiming to represent 70% of the airplanes and engines leased to the airline group have called the plan "inappropriate and fatally flawed"
The airline group is seeking to implement the restructuring plan through a UK court process, according to sources.

Lessors reject Malaysia Airlines restructuring plan
https://www.theedgemarkets.com/article/ ... uring-plan


They own their A380s right? So whatever happens they won't be affected by the lease restructuring plans?
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ZK-NBT
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Oct 11, 2020 12:20 am

filipinoavgeek wrote:
mercure1 wrote:
A group of leasing companies has rejected a restructuring plan put forward by Malaysia Airlines, bringing the state carrier closer to a showdown over its future. Lessors claiming to represent 70% of the airplanes and engines leased to the airline group have called the plan "inappropriate and fatally flawed"
The airline group is seeking to implement the restructuring plan through a UK court process, according to sources.

Lessors reject Malaysia Airlines restructuring plan
https://www.theedgemarkets.com/article/ ... uring-plan


They own their A380s right? So whatever happens they won't be affected by the lease restructuring plans?


I think they own them which is unfortunate as they are stuck with them and were never needed in the first place.
 
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Oct 11, 2020 3:13 am

filipinoavgeek wrote:
They own their A380s right? So whatever happens they won't be affected by the lease restructuring plans?

The A380s are owned by a Malaysian government special purpose vehicle company and leased to MAG.
 
AngMoh
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Oct 11, 2020 3:56 am

TheFlyingDisk wrote:
Given the topsy turvy state of the Malaysian government today, there's definitely paralysis in Khazanah & MH's status is on the balance.

On one hand the government could just wash their hands on this and let the airline go under. But then the job losses would be in the five figure range - not good for the current government who is trying to consolidate their power.

On the other hand, they can continue to sink Khazanah's money into the airline. But then the question is until when will this continue?

As for AirAsia, they're not in the best shape either. They've already cut down on staff and is planning to cut down even further. My brother in law is sleeping with one eye open, so to speak, and he's in a critical department for AK. They're not in a position to scoop up after MH at this time.


The Malaysian government is playing games as usual. In the end they will keep flying MAS in some form or another as too many "jobs for the boys" will be lost otherwise. They also need to keep KUL viable and AirAsia alone will not do that. Something weird will happen in the end, MAS (or some concoction coming out of MAS) will keep flying and the bleeding will continue with a new "final decision" being made in 1-2 years time.
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xwb777
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Oct 14, 2020 9:48 am

Khazanah: Firefly could become the Malaysian national carrier if MAS is shutdown.

https://www.reuters.com/article/malaysi ... SL4N2H525H
 
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Oct 14, 2020 1:56 pm

xwb777 wrote:
Khazanah: Firefly could become the Malaysian national carrier if MAS is shutdown.

https://www.reuters.com/article/malaysi ... SL4N2H525H

I do wonder whether Firefly would be able to source aircraft from "the market" if MAS defaults on its commitments to lessors. Does that mean it will just purchase cheap aircraft via another government special purpose vehicle?
 
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mercure1
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Oct 15, 2020 4:30 am

So the Malaysian government/Khazanah decided to play the shell game.
Basically, leave old debt and unwanted assets in the current MAS, and take the Firefly AOC and relaunch as the new MAS.
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ScottB
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Oct 15, 2020 4:57 am

mercure1 wrote:
So the Malaysian government/Khazanah decided to play the shell game.
Basically, leave old debt and unwanted assets in the current MAS, and take the Firefly AOC and relaunch as the new MAS.


As I said 19 months ago:

ScottB wrote:
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!
 
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TheFlyingDisk
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Oct 15, 2020 5:09 am

mercure1 wrote:
So the Malaysian government/Khazanah decided to play the shell game.
Basically, leave old debt and unwanted assets in the current MAS, and take the Firefly AOC and relaunch as the new MAS.


Problem is, they already did that in 2015. They left the old debt & unwanted assets in MAS, and formed a new company MAB.
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Oct 15, 2020 5:28 am

TheFlyingDisk wrote:
mercure1 wrote:
So the Malaysian government/Khazanah decided to play the shell game.
Basically, leave old debt and unwanted assets in the current MAS, and take the Firefly AOC and relaunch as the new MAS.

Problem is, they already did that in 2015. They left the old debt & unwanted assets in MAS, and formed a new company MAB.

I think that this time, it also includes leaving legacy agreements with unions behind. They are still overstaffed. Firefly (FY) does not have unions.
 
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TheFlyingDisk
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Oct 15, 2020 12:41 pm

xwb777 wrote:
Khazanah: Firefly could become the Malaysian national carrier if MAS is shutdown.

https://www.reuters.com/article/malaysi ... SL4N2H525H


Looks like the process is starting slowly.

Malaysia's Firefly to start jet flights in Q1 next year https://www.reuters.com/article/malaysi ... SL4N2H62WL
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filipinoavgeek
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Oct 15, 2020 12:59 pm

TheFlyingDisk wrote:
xwb777 wrote:
Khazanah: Firefly could become the Malaysian national carrier if MAS is shutdown.

https://www.reuters.com/article/malaysi ... SL4N2H525H


Looks like the process is starting slowly.

Malaysia's Firefly to start jet flights in Q1 next year https://www.reuters.com/article/malaysi ... SL4N2H62WL


Funny thing is Firefly did briefly operate 737s at one point, so this is basically just a return for them.
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69bug
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Oct 15, 2020 11:58 pm

Firefly has a very lean team but also depends on the mothership for a lot of infra (eg HR and finance as well as a lot of IT support), in some cases this helps but in most cases it's a hindrance. But it has stuck to its guns in using Naviatire for its Res and DCS despite pressure to join MH in whatever system theyre using so they do have some autonomy.
I would have thought that Maswings (MW) would be a better bet as they operated using MH's Res and DCS and they dont have their own flight numbers but as I understand it they are a heavily subsidised operations and the accounting would be messy.

bug
 
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Fri Oct 16, 2020 4:43 am

69bug wrote:
Firefly has a very lean team but also depends on the mothership for a lot of infra (eg HR and finance as well as a lot of IT support), in some cases this helps but in most cases it's a hindrance. But it has stuck to its guns in using Naviatire for its Res and DCS despite pressure to join MH in whatever system theyre using so they do have some autonomy.
I would have thought that Maswings (MW) would be a better bet as they operated using MH's Res and DCS and they dont have their own flight numbers but as I understand it they are a heavily subsidised operations and the accounting would be messy.

bug

MASWings is only operating in East Malaysia and it is also the operator that runs the Rural Air Services (RAS) that is subsidised by the government. RAS is a social service for the inaccessible interiors of Sarawak and Sabah that are poorly connected by land and/or river transport.

I suspect that MAB will be transferring some of its owned aircraft to Firefly in case creditors decide to seize their assets. This will enable MAG to continue operating domestic services as they still have their jet aircraft. Covid-19 services don't need many aircraft - Firefly is targeting ten jet aircraft to operate its planned services.
 
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LAXintl
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Dec 23, 2020 9:24 pm

Seems we might hear an update on the future of the airline in the coming days.

https://www.ch-aviation.com/portal/news ... 0-minister

Malaysia Airlines’ restructuring is expected to be completed by December 31, the country’s deputy finance minister, Abdul Rahim Bakri, divulged during a Ministers’ Question Time session at the parliament earlier this week, The Star newspaper reported.

The government has held several discussions on the debts and leasing costs the flag carrier faces, he explained, saying: “I can see some progress, and the matter is expected to be finalised by the end of the month.”
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xwb777
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Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Dec 24, 2020 9:18 pm

I think this will be the last chance given to save the airline before shutting it down.
 
filipinoavgeek
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Dec 27, 2020 11:12 pm

It would be a great shame if a historic and notable name like MAS were to go under. It was the pride of Malaysia for so long, and I'm pretty sure there is enough demand for a full-service carrier based there given its size and economy. Their Negaraku special livery is beautiful as well and part of me wishes it was made their actual livery instead of that pretty bland red-and-blue stripes thing.
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Antaras
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Dec 28, 2020 12:20 am

filipinoavgeek wrote:
It would be a great shame if a historic and notable name like MAS were to go under. It was the pride of Malaysia for so long, and I'm pretty sure there is enough demand for a full-service carrier based there given its size and economy. Their Negaraku special livery is beautiful as well and part of me wishes it was made their actual livery instead of that pretty bland red-and-blue stripes thing.

Yes, MH's Negaraku cs is beautiful and simple enough to be MH's livery.
Alongside the blue livery on the A380s.
If you disagree with my statement, assume that it was just a joke :duck:
 
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Dec 28, 2020 4:32 am

Antaras wrote:
filipinoavgeek wrote:
It would be a great shame if a historic and notable name like MAS were to go under. It was the pride of Malaysia for so long, and I'm pretty sure there is enough demand for a full-service carrier based there given its size and economy. Their Negaraku special livery is beautiful as well and part of me wishes it was made their actual livery instead of that pretty bland red-and-blue stripes thing.

Yes, MH's Negaraku cs is beautiful and simple enough to be MH's livery.
Alongside the blue livery on the A380s.

Although not officially announced, some insiders have mentioned that the A380s have been returned to the lessors.

The Negaraku livery was on half the A332s and it seems to be making its way into the A333 fleet as more and more of those aircraft now carry that livery.



There is also a special "Harimau Malaya" livery promoting the national football/soccer team.

 
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Antaras
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Dec 28, 2020 4:40 am

flee wrote:
Although not officially announced, some insiders have mentioned that the A380s have been returned to the lessors.

Not a big surprise...
But who is the lessors of the MH A380?
If you disagree with my statement, assume that it was just a joke :duck:
 
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TheFlyingDisk
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Dec 28, 2020 5:53 am

Antaras wrote:
Not a big surprise...
But who is the lessors of the MH A380?


The lessors of the MH A380 I believe is the SPV set up by the Malaysian government to fund said purchase. They then lease the aircraft to MH.
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filipinoavgeek
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Dec 28, 2020 7:19 am

The sad state of MAS is very depressing even for a non-Malaysian like me. I remember flying to Paris several years ago on a TG A380 (itself a struggling airline) and seeing MH's A380 parked at the terminal next to us (it was actually the first time I even learned that MH had A380s). Today, MH doesn't even fly to Paris anymore and their A380s are grounded, perhaps forever (not to mention TG's A380s themselves being grounded to and perhaps not having a future with the airline given that they're already trying to sell some of them).

TheFlyingDisk wrote:
Antaras wrote:
Not a big surprise...
But who is the lessors of the MH A380?


The lessors of the MH A380 I believe is the SPV set up by the Malaysian government to fund said purchase. They then lease the aircraft to MH.

Does that mean the A380s are goners from the MH fleet? And if so, what is likely to be their ultimate fate given that MAS has tried but failed to sell them?
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ASEANFlyer
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Dec 28, 2020 8:51 am

Looks like we should hear about MAS restructuring by the end of the year.

Been looking at their schedules and prior to Covid-19 MAS would operate 4/6 of the leased A350's on the double daily LHR operations and the remaining on Japan flights (NRT & KIX).

However, it looks as though MAS will be dropping one frequency (MH 1 & MH 4) on LHR and going one daily initially with the A350. However, from November 2021 the one daily is scheduled to be operated by A380 according to Malaysia Airlines website.

I cannot find any flights beyond October 2021 operated by A350 making me think that the 6 leased A350's will be returned to the lessor and having A380 on LHR and Saudi Arabia flights, A330-300 on longer range Asia Pacific flights and the 737-800's operating on short-haul regional and domestic flights.
 
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TheFlyingDisk
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Dec 28, 2020 12:23 pm

filipinoavgeek wrote:
Does that mean the A380s are goners from the MH fleet? And if so, what is likely to be their ultimate fate given that MAS has tried but failed to sell them?


Hard to say, really. The current government is quite unpredictable.

ASEANFlyer wrote:
I cannot find any flights beyond October 2021 operated by A350 making me think that the 6 leased A350's will be returned to the lessor and having A380 on LHR and Saudi Arabia flights, A330-300 on longer range Asia Pacific flights and the 737-800's operating on short-haul regional and domestic flights.


It could be a seasonal thing. Not the first time that they've done this with the A380s.
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mercure1
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sat Jan 02, 2021 10:07 pm

Seems like the finance minister missed the deadline he only announced a week ago. Lets see if any news forthcoming in the next few days.
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NZ321
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Re: Malaysia Mulls Shutting Down or Selling MAS

Sun Jan 03, 2021 4:42 pm

mercure1 wrote:
Seems like the finance minister missed the deadline he only announced a week ago. Lets see if any news forthcoming in the next few days.


The current government seem to regularly miss deadlines and change direction. Just have to wait and see. Hopefully we hear news soon.

Personally, I hope they save MAS and give it a proper reboot. Maybe a brand refresh. Time to move on. Be good to see the A380s go, along with all the old MH 777 aircraft littering the tarmac a KUL and to see some fiscal prudence. Their aircraft utilisation rate before covid was hardly scintillating. They could institute a hybrid model like NZ - low cost type approach for domestic and some short haul - with a european style hybrid business forward cabin where the middle seat can be blocked - or the entire aircraft sold as economy - and premium product long haul. And maybe even cut the fleet down to two-three types. 737, A333, A359. No need to restart flights to North America. But would be good to see a little improvement in connectivity to Europe especially considering the connectivity from NZ and Australia along with the rest of SE Asia. Had some great trips on this airline over the years, back in the days of the DC10s right through to recent. Fingers crossed for a decent plan....
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Jan 04, 2021 7:59 am

NZ321 wrote:
[Their aircraft utilisation rate before covid was hardly scintillating. They could institute a hybrid model like NZ - low cost type approach for domestic and some short haul - with a european style hybrid business forward cabin where the middle seat can be blocked - or the entire aircraft sold as economy - and premium product long haul. And maybe even cut the fleet down to two-three types. 737, A333, A359. No need to restart flights to North America. But would be good to see a little improvement in connectivity to Europe especially considering the connectivity from NZ and Australia along with the rest of SE Asia. Had some great trips on this airline over the years, back in the days of the DC10s right through to recent. Fingers crossed for a decent plan....

Their B738 utilisation before the pandemic was approaching 13 hrs per day. That is quite close to Airasia's at 14+ hrs. In 2021, they will be getting rid of some surplus B738s - they are sending some over to Firefly who will open a jet hub in PEN. Firefly should be targetting the low cost market and it may be the beginning of a transition to a low cost short haul model for MAG.

MAG has the unfortunate problem of having legacy high costs and low yield home market. Even long haul markets don't make much money. Hopefully, they get more serious with their cargo operations to help with the yield. It is difficult to justify restarting European flights when they have problems making money from their double daily KUL-LHR flights. Their most profitable routes are to China, Korea, Taiwan, Hong Kong and Japan. Australia and New Zealand are not big money spinners - with the lack of connections to Europe, their popularity with travelers from that region might be lower.

Fleet wise, MH is currently using the A359 for flights to LHR and AKL (and sometimes to Japan). Their A333s are starting to come to the end of their leases - so what should they do? It is difficult to justify getting more A359s as most of their routes are below 10 hours flying time. The A333s should be fine and they should probably extend the leases for another 3-5 years. This should buy them some time to consider a fleet for the new norms of travel.

Much will depend on how tough their current lessors are. If they cannot work out something for MAG, the government no longer sees the necessity to keep it flying. They will not be bailing out any of the Malaysian airlines as these compete against one another. So government money will be wasted and can be used for other Covid-19 relief programmes. So lets see what happens....
 
mxaxai
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Jan 04, 2021 12:37 pm

flee wrote:
Fleet wise, MH is currently using the A359 for flights to LHR and AKL (and sometimes to Japan). Their A333s are starting to come to the end of their leases - so what should they do? It is difficult to justify getting more A359s as most of their routes are below 10 hours flying time. The A333s should be fine and they should probably extend the leases for another 3-5 years. This should buy them some time to consider a fleet for the new norms of travel.

Rumors are that another Malaysian airline has a bunch of A339 ready for delivery but is unwilling / unable to take them. Perhaps Airbus could offer MH a good deal to replace their A332 & A333?
 
NZ321
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Jan 04, 2021 1:29 pm

mxaxai wrote:
flee wrote:
Fleet wise, MH is currently using the A359 for flights to LHR and AKL (and sometimes to Japan). Their A333s are starting to come to the end of their leases - so what should they do? It is difficult to justify getting more A359s as most of their routes are below 10 hours flying time. The A333s should be fine and they should probably extend the leases for another 3-5 years. This should buy them some time to consider a fleet for the new norms of travel.


Rumors are that another Malaysian airline has a bunch of A339 ready for delivery but is unwilling / unable to take them. Perhaps Airbus could offer MH a good deal to replace their A332 & A333?


Not much rumour in that. The good thing about the A339 is it does have the range to do LHR albeit not quite with the same economics as the A359. And it can also to JNB, AKL and HNL and YVR / SEA. But it ain't the starlight performer at the outer limits of it's range beyond about 5000 nm from what I can gather. Surely, the last thing MH needs now is a new engine and a new aircraft type. What they need is simplification and to restructure the airline - short haul and international - into two sub-groups on different contracts. That is what will save their bacon IMHO. And more efficient utilisation of the international fleet.
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chonetsao
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Re: Malaysia Mulls Shutting Down or Selling MAS

Mon Jan 04, 2021 1:41 pm

mxaxai wrote:
Rumors are that another Malaysian airline has a bunch of A339 ready for delivery but is unwilling / unable to take them. Perhaps Airbus could offer MH a good deal to replace their A332 & A333?


I think it would only happen if Airbus offered a very attractive terms to buy back the A380 fleet from MH and maybe also offer few A359s to sweeten the deal. However, I highly doubt that would happen. It may be cheaper for Airbus to park the unwanted A339 until the market recover and some other entities come for the rescue. There is always Chinese buyers, or even a new start up in Thailand to replace TG! Both has higher chances of happening before MH takes the A339.
 
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flee
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Jan 05, 2021 5:20 am

chonetsao wrote:
I think it would only happen if Airbus offered a very attractive terms to buy back the A380 fleet from MH and maybe also offer few A359s to sweeten the deal. However, I highly doubt that would happen. It may be cheaper for Airbus to park the unwanted A339 until the market recover and some other entities come for the rescue. There is always Chinese buyers, or even a new start up in Thailand to replace TG! Both has higher chances of happening before MH takes the A339.

Malaysia Airlines is a long term Airbus customer - it goes back to when Airbus was born. They had A300s before moving to the early build A333s and now, its the A332/333. It is also one of the handful of airlines that operated the A380.

Airbus also views MAG is a state owned flag carrier - so it won't be easy to extract concessions from them because they know that the govt. won't let anything bad happen to it. However, it really depends on how skillful the negotiators can be to carve out some deal that will be acceptable to both sides.
 
ScottB
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Jan 05, 2021 6:40 am

flee wrote:
Airbus also views MAG is a state owned flag carrier - so it won't be easy to extract concessions from them because they know that the govt. won't let anything bad happen to it. However, it really depends on how skillful the negotiators can be to carve out some deal that will be acceptable to both sides.


Apologies for mixing cultures, but Airbus understands that this whole exercise is essentially Kabuki theatre -- much more about the political stagecraft of appearing to "do something" about MAS rather than actually accomplishing a meaningful restructuring or shutting it down.
 
F9Animal
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Jan 05, 2021 7:03 am

I feel like this poor airline got dealt a horrible hand, and had some pretty bad luck when you really think about it. To make matters worse, the pandemic hit. I wonder if it's time to change the name or brand? Of course that costs money, but the stigma from the 2 tragedies has to have taken its toll on the travelling public. I honestly don't know what steps have been taken in regards to my question, as I know very little about this airline.

I do know this much though. I wouldn't hesitate flying on them at all. I will pray to whoever needs it, especially for the employees of this airline. I really hope they can pull through and prosper.
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ASEANFlyer
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Jan 05, 2021 8:53 am

I'd be surprised if they decide to shut it down. If they were the decision would have already been announced before the 31/12/2020 deadline. I suspect the delay is to get everything in order before they announce a new strategy. I say new but it is likely to be much the same in terms of aircraft and routes.

However, checking their schedules I do see them operating the following fleet;

- 737-800 for domestic, ASEAN flights & India, PER & HKG (smaller number as some are to go to Firefly operating out of PEN and some to be returned to lessors)
- A330-200 for flights to CAN, TPE, PVG, PER, JED, AKL
- A330-300 for flights to ADL, BNE, SYD, MEL, NRT, KIX, PVG, PKX, ICN, HKG, BOM, DEL
- A380-800 for flights to LHR & Saudi Arabia pilgrimage flights.

Based on the schedule LHR will be 1x daily instead of the normal 2x (MH1 & MH4 to be cut).

As for the 6x leased A350-900 nothing is scheduled for these post October 2021. I guess as these are all leased and in demand aircraft MAS may think there won't be too many penalties for returning these early. The A380s are stuck with them as there is no secondary market for them.

I could eventually see MAS getting A330-900 to replace the A330-200 and A330-300's as most of these flights are between the 6-9 hours mark and so do not require A350.
 
NZ321
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Jan 05, 2021 11:36 am

ASEANFlyer wrote:
I'd be surprised if they decide to shut it down. If they were the decision would have already been announced before the 31/12/2020 deadline. I suspect the delay is to get everything in order before they announce a new strategy. I say new but it is likely to be much the same in terms of aircraft and routes.

However, checking their schedules I do see them operating the following fleet;

- 737-800 for domestic, ASEAN flights & India, PER & HKG (smaller number as some are to go to Firefly operating out of PEN and some to be returned to lessors)
- A330-200 for flights to CAN, TPE, PVG, PER, JED, AKL
- A330-300 for flights to ADL, BNE, SYD, MEL, NRT, KIX, PVG, PKX, ICN, HKG, BOM, DEL
- A380-800 for flights to LHR & Saudi Arabia pilgrimage flights.

Based on the schedule LHR will be 1x daily instead of the normal 2x (MH1 & MH4 to be cut).

As for the 6x leased A350-900 nothing is scheduled for these post October 2021. I guess as these are all leased and in demand aircraft MAS may think there won't be too many penalties for returning these early. The A380s are stuck with them as there is no secondary market for them.

I could eventually see MAS getting A330-900 to replace the A330-200 and A330-300's as most of these flights are between the 6-9 hours mark and so do not require A350.


Your info is outdated. A350-900 has been on Auckland since mid October and is operating other flights as well to London and north Asia.
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Faro
Posts: 2020
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Jan 05, 2021 12:42 pm

anshabhi wrote:
Not happening. State carriers never close



Just like pandemics...


Faro
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mxaxai
Posts: 2495
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Re: Malaysia Mulls Shutting Down or Selling MAS

Tue Jan 05, 2021 12:48 pm

ASEANFlyer wrote:
- 737-800 for domestic, ASEAN flights & India, PER & HKG (smaller number as some are to go to Firefly operating out of PEN and some to be returned to lessors)
- A330-200 for flights to CAN, TPE, PVG, PER, JED, AKL
- A330-300 for flights to ADL, BNE, SYD, MEL, NRT, KIX, PVG, PKX, ICN, HKG, BOM, DEL
- A380-800 for flights to LHR & Saudi Arabia pilgrimage flights.

I would suggest a future fleet:
- 737 MAX 8 / 9 / 10 for domestic, ASEAN flights & India, PER & HKG
- also 737 MAX for flights to CAN, TPE, PVG
- A330-900 for flights to JED, AKL
- also A330-900 for flights to ADL, BNE, SYD, MEL, NRT, KIX, PVG, PKX, ICN, HKG, BOM, DEL
- A350-900 for flights to LHR

This would require the least capital investment while providing a modern, efficient fleet. It would also be in line with the industry trend of shifting medium-haul flights to narrowbodies, to provide higher frequency and better yields. A small number of high-density A339 could provide cargo and passenger volume for the few destinations that need it.

However, MH definitely requires a deep structural reform and has to ask what its unique selling point is. I doubt that new aircraft would be enough. Malaysia would not loose much connectivity if MH ceased operations and AK/D7 filled the void. Alternatively, closer cooperation or a merger with SQ could also be an option, but I guess MH isn't worth buying in its current state.
 
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mercure1
Topic Author
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Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Jan 06, 2021 6:07 pm

Well seems like Malaysia Airlines will seek UK court bankruptcy protection to complete debt restructuring in 1Q.


"once the airline has garnered enough support for its debt restructuring plan, it will file the plan with the UK court for court sanction. Following that, Khazanah will inject new capital into the airline to tide it over until the expected full recovery in the domestic and Asean air travel markets in 2022."

https://www.theedgemarkets.com/article/ ... cturing-1q
mercure f-wtcc
 
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zippyjet
Posts: 5189
Joined: Tue Sep 04, 2001 3:32 pm

Re: Malaysia Mulls Shutting Down or Selling MAS

Wed Jan 06, 2021 11:01 pm

Not to be flip but, Pan Am itineration 27? or Eastern Airlines ninth edition?
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LAXintl
Posts: 25247
Joined: Wed May 24, 2000 12:12 pm

Re: Malaysia Mulls Shutting Down or Selling MAS

Thu Jan 07, 2021 5:05 pm

Sounds like the status quo.

The debt holders get a hair cut, while Khazanah dumps more in money and life continues.

Unless the restructuring plan calls for real change in things like labor, business model, the various subsidiaries, the future results are near assuredly continued red ink.
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