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Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 10:23 am
by readytotaxi
MAS and SAA make good bedfellows.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 10:27 am
by filipinoavgeek
This makes me wonder why they don't they just try privatizing MH or at least selling a stake to others. I know it just got nationalized a few years ago, but it seemed that the nationalization (which was done since MH was struggling even then) has been just as much of a failure. Too much national pride?

Not really sure though if shutting down MH would be a good idea though, national pride aside. Is Malindo/Batik a major player in Malaysia yet? Because if they remain weak, MH going away would mean AK domination instead of say competition.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 10:32 am
by tayser
jani13 wrote:
It'll actually be perfect for Qantas


That's what I was thinking!

330s, 737s, 380s... very similar fleets at present only difference in the major fleet is 350 (MH) versus 787 (QF).

imagine 'QF' getting ~8 more 330s (or 787s or 350s or smaller aircraft for PER/DRW) and takes over the milk runs between KUL and MEL/SYD/BNE/ADL and the current 'MH' 330/350 fleet is moved onto an expanded European/African/North American network. [/crystall ball].

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 10:47 am
by TheFlyingDisk
Pampot70 wrote:
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.


Can't respond in depth to your insinuations without taking this thread way off thread but suffice it to say that you are not correct in the least bit.

juliuswong wrote:
Literally LOL-ed at this comment. Tough luck, try again in four years' time.


You may LOL, but you know very well that what I wrote isn't far from the truth if you're truly honest with yourself.

filipinoavgeek wrote:
This makes me wonder why they don't they just try privatizing MH or at least selling a stake to others. I know it just got nationalized a few years ago, but it seemed that the nationalization (which was done since MH was struggling even then) has been just as much of a failure. Too much national pride?


They tried privatization during the go-go 90s. It failed because the current PM sold the airline to his crony who milked the airline for all their worth.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 11:55 am
by AngMoh
tayser wrote:
jani13 wrote:
It'll actually be perfect for Qantas


That's what I was thinking!

330s, 737s, 380s... very similar fleets at present only difference in the major fleet is 350 (MH) versus 787 (QF).

imagine 'QF' getting ~8 more 330s (or 787s or 350s or smaller aircraft for PER/DRW) and takes over the milk runs between KUL and MEL/SYD/BNE/ADL and the current 'MH' 330/350 fleet is moved onto an expanded European/African/North American network. [/crystall ball].


The only country Mahathir hates more than Singapore is Australia. Just ask Paul Keating. QF is a no go.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 12:13 pm
by TheFlyingDisk
So the Minister of Finance says the PM's statement is misconstrued, that the airline is not to be sold off or closed down. And the blame for the confusion should go (as always) to the former PM.

https://www.thestartv.com/v/guan-eng-pm ... e-sold-off

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 12:21 pm
by DL747400
MAS is damaged beyond repair and is not worth saving. There is very little of any real value left to sell. The brand is forever toxic. Debt is off the charts. Assets are mortgaged to the hilt. The network is a shambles. LCC/ULCC competitors have it surrounded. Let it die.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 12:43 pm
by peterinlisbon
It would be a huge loss for the country as a whole if they do this. Air Asia doesn't even fly to Europe, it just takes the low-hanging fruit and flies the point to point routes that it finds profitable. I suppose they could look at closing all of the roads, railways, water and electricity networks if they think that it would be a good idea to shut down everything that doesn't make a profit. I think a strong national airline can serve a country by keeping it connected and that service outweighs the losses in most cases.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 12:50 pm
by Tsveto4nik
TheFlyingDisk wrote:
So the Minister of Finance says the PM's statement is misconstrued, that the airline is not to be sold off or closed down. And the blame for the confusion should go (as always) to the former PM.

https://www.thestartv.com/v/guan-eng-pm ... e-sold-off


But he did not ruled out the possibility of selling or closing down...
http://www.astroawani.com/video-malaysi ... hir-390820

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 12:57 pm
by Joel2233
TheFlyingDisk wrote:
So the Minister of Finance says the PM's statement is misconstrued, that the airline is not to be sold off or closed down. And the blame for the confusion should go (as always) to the former PM.

https://www.thestartv.com/v/guan-eng-pm ... e-sold-off

Mahathir mentioned the need to look into the loss making airline and said options include refinancing, selling it or shutting it down adding that it was a very serious matter.

Some are jumping the gun claiming the decision is made which is not the case.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 1:01 pm
by Joel2233
If Christoph Mueller was never kicked out in the first place, this discussion would never be needed.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 1:03 pm
by NZ321
This thread is a waste of space and I suggest we all find something better to do than continue contributing to this nonsense

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 13, 2019 1:10 pm
by TheFlyingDisk
Joel2233 wrote:
If Christoph Mueller was never kicked out in the first place, this discussion would never be needed.


I don't know. Remember, he was present at the death of Sabena. And post MH he hardly made a dent in EK.

Joel2233 wrote:
Some are jumping the gun claiming the decision is made which is not the case.


This is the what was said by the ex-PM. I don't see him jumping the gun and claiming the decision is made. He only advised against selling/closing MH.

https://www.thesundaily.my/local/don-t- ... b-MC675428

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 14, 2019 5:33 am
by janders
Bloomberg has a pay wall article out today that states MAS in 2018 racked up losses of nearly USD $700million!

Also since the 2014 nationalization, the Malaysian government has provided $1.5bil in direct funding to MAS, along with the assumption of $4.25Bil in debt, and write-offs for the carrier.

Some crazy large figures :eek:

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 14, 2019 5:45 am
by LAXintl
Wow indeed.

To put things in perspective - for last full year MAS publicly reported financial figures in 2013 - it generated revenue of about $3.6 Bil USD with a loss of $285mil using current MYR/USD exchange rate.
http://ir.chartnexus.com/mas/website_HT ... 085517.pdf

Today MAS is a smaller company, and if it is racking up a $700mil loss annually, things are indeed far worse.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 14, 2019 5:48 pm
by mercure1
peterinlisbon wrote:
It would be a huge loss for the country as a whole if they do this. Air Asia doesn't even fly to Europe, it just takes the low-hanging fruit and flies the point to point routes that it finds profitable. I suppose they could look at closing all of the roads, railways, water and electricity networks if they think that it would be a good idea to shut down everything that doesn't make a profit. I think a strong national airline can serve a country by keeping it connected and that service outweighs the losses in most cases.


While I don't personally have an issue with national carriers if the country can afford it, I don't see an issue with MAS giving way to a strong AirAsia.

Who cares if they serve Europe or not, but AirAsia connects Malaysia better domestically and within ASEAN that MAS does.

At the end of the day, it probably not viable to continue spending billions on MAS year after year as the nation has other needs as well.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 14, 2019 7:38 pm
by UPlog
Carrier itself says idea of national airline is dying.

Malaysia Airlines Reaffirms View That the Idea of Flag Carriers Is Dead
https://skift.com/2019/03/14/malaysia-a ... s-is-dead/

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Fri Mar 15, 2019 12:04 am
by filipinoavgeek
mercure1 wrote:
peterinlisbon wrote:
It would be a huge loss for the country as a whole if they do this. Air Asia doesn't even fly to Europe, it just takes the low-hanging fruit and flies the point to point routes that it finds profitable. I suppose they could look at closing all of the roads, railways, water and electricity networks if they think that it would be a good idea to shut down everything that doesn't make a profit. I think a strong national airline can serve a country by keeping it connected and that service outweighs the losses in most cases.


While I don't personally have an issue with national carriers if the country can afford it, I don't see an issue with MAS giving way to a strong AirAsia.

Who cares if they serve Europe or not, but AirAsia connects Malaysia better domestically and within ASEAN that MAS does.

At the end of the day, it probably not viable to continue spending billions on MAS year after year as the nation has other needs as well.


The problem though is if there would be enough competition in Malaysia if MAS goes away. Sure there's Malindo, but IIRC they're a distant third right now.
Another issue is that AirAsia does not operate regional aircraft, and quite a few airports in Malaysia can only handle such planes (hence why Firefly and MASwings exist).

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Fri Mar 15, 2019 3:52 am
by strfyr51
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

What does Loss of Face have to do with Business? They're either making money or Losing it? I would say merge with SIA since they're close by and run an Asian Powerhouse of an airline!

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Fri Mar 15, 2019 4:42 pm
by peterinlisbon
strfyr51 wrote:
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

What does Loss of Face have to do with Business? They're either making money or Losing it? I would say merge with SIA since they're close by and run an Asian Powerhouse of an airline!


That's never going to happen. Merging with SIA would be humiliating for Malaysia and it would mean that most their long-haul traffic goes through Singapore, giving that country an advantage over them and making them look like a backwater.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Sat Mar 16, 2019 9:45 am
by neutrino
UPlog wrote:
Carrier itself says idea of national airline is dying.

Malaysia Airlines Reaffirms View That the Idea of Flag Carriers Is Dead
https://skift.com/2019/03/14/malaysia-a ... s-is-dead/

"Malaysia Airlines, established in 1972 after it split from Singapore Airlines...."
Just a little correction on what the article wrote:
MAS did not split from SIA.
MAS and SIA were the result of the split from the then Malaysia-Singapore Airlines or MSA.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 21, 2019 8:05 pm
by janders
Prime Minister says “I love MAS, but it looks like we cannot afford it,”

https://www.scmp.com/news/asia/southeas ... g-malaysia

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 21, 2019 8:20 pm
by TC957
Could Tony Fernandes do a deal whereby he takes what he wants from MH, like the A350's and the prized LHR route, merge it into Air Asia and then let the rest of MH die off peacefully ? That way Air Asia would become Malaysia's " flag carrier " and saves them from having external involvement.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 21, 2019 8:43 pm
by DABYT
ExpatVet wrote:
anshabhi wrote:
Not happening. State carriers never close


Malév, Sabena, and Swiss would like a word.


Pluna, too

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Fri Mar 22, 2019 8:57 pm
by mercure1
Financial analyst provide opinions about options for MAS


1. Selling the airline
Aviation experts and analysts said that selling the airline is an unlikely scenario because buyers and potential investors, whether domestic or foreign, have little to gain from buying it out.
Within the country, AirAsia has the resources for a buyout, the experts said. The Malaysian low-cost carrier is the largest airline in the country and accounted for nearly 55 per cent of all passenger traffic in Malaysia last year. However, Mohshin Aziz, associate director of Maybank Kim Eng Securities, was of the opinion that there is a “next to zero” chance that AirAsia will buy out Malaysia Airlines after the failed collaboration between both airlines several years ago.
While one option would be for Malindo Air, the smallest Malaysian carrier, to merge with Malaysia Airlines to fast-track its expansion into the Asia-Pacific and West Asia markets, it will be a “huge undertaking” for Malindo Air to absorb the national airline’s 12,000 employees, Mohshin said.
On the possibility of foreign investors buying over Malaysia Airlines, he pointed out that the regulations only allow foreign firms minority stake in the airline and a foreign investor will not have full management control because the key management personnel will still have to be Malaysians, he said.

2. Shutting it down
Several analysts also said that it is unlikely the Malaysian government will shut down the airline.
K Ajith, director of Asia transport research at United Overseas Bank Kay Hian Research, pointed out that there may not be a political will to go through with shutting down the Malaysia Airlines, given the number of jobs that will be lost.

3. Restructuring
Malaysia Airlines could restructure to cut down its operating costs, several analysts said.
It could relook its strategy and reposition itself as a regional rather than an international airline to help lower its costs, Sobie suggested.
Taylor said that more focus could be put on attracting travellers to Malaysia, rather than competing with other Asian and Middle Eastern carriers that target traffic between the two regions.

4. Government bailout
Mohshin said that it was untenable for the current Malaysian government to keep bailing out the airline.
Changes to the Malaysian aviation regulatory landscape in recent years, such as the upgrading of the Department of Civil Aviation to the Civil Aviation Authority of Malaysia in 2016, as well as the establishment of the Malaysian Aviation Commission in the same year, meant that Malaysia Airlines now have to comply with more stringent international accounting rules and standards. "Its now clear that blatant subsidies or any form of non-competitive behavior is wrong.” “So, I don’t think they can replicate what they have done in the past.”


What’s next for Malaysia Airlines
https://www.malaymail.com/news/malaysia ... es/1734596

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Fri Mar 22, 2019 9:29 pm
by GalebG4
1. Merging Malindo with Malaysia would be good decision, but before that airline needs a lot of resources for restructuring. 12000 employees is number including subsidiaries, which could be sold independently to other investors. Also changing the law for ownership.
2. Possible yes, but I don’t believe it will happen.
3. This is happening probably 5-6 times.
4. 100%.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Mon Mar 25, 2019 2:08 pm
by juliuswong
Grapevine in MH office corridor....QR is reportedly currently looking at MH books. May or may not transpired something concrete.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Mon Mar 25, 2019 4:08 pm
by 3AWM
I can see some advantages of this-

- a route around the restrictive Qatar - Australia air service agreement
- taking out he extensive Emirates codeshare for a similar deal with Qatar

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Mon Mar 25, 2019 4:15 pm
by ewt340
The only way they could survive is to turn MAS into LCC. 9-abreast on A330!!!

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 27, 2019 8:48 pm
by mercure1
The government says several foreign companies have approached about a potential stake or partnership with MAS.

They also don't see much value in talk about AirAsia taking over MAS. They rather maintain two airlines that can compete in their respective segments.

https://www.malaymail.com/news/malaysia ... im/1736376

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 27, 2019 9:02 pm
by strfyr51
I have no real idea as to what MAS's situation is? Or why it's in this shape. So I'm coming in behind the 8-ball, Having said that? Is MAS running a business or a social club? And? Are they running a business for the sake of Business? OR? As a prestigious place to have their Cronies and Kids work? I've met MAS mechanics and they were damn good at what they did, I've met some of their pilots and they appeared to be competent. But? There must be something I didn't see and I'm wondering what that was.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 27, 2019 9:31 pm
by blooc350
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.



Aiya, SQ buy MH? you know they hate each other yea? lol

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Wed Mar 27, 2019 9:39 pm
by TheFlyingDisk
strfyr51 wrote:
I have no real idea as to what MAS's situation is? Or why it's in this shape. So I'm coming in behind the 8-ball, Having said that? Is MAS running a business or a social club? And? Are they running a business for the sake of Business? OR? As a prestigious place to have their Cronies and Kids work? I've met MAS mechanics and they were damn good at what they did, I've met some of their pilots and they appeared to be competent. But? There must be something I didn't see and I'm wondering what that was.


MAS was ruined by the fourth Prime Minister. Who just so happens to be the current Prime Minister.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 28, 2019 1:50 am
by flee
strfyr51 wrote:
There must be something I didn't see and I'm wondering what that was.


There are many things wrong that are not easy for outsiders to see. The airline operations is doing OK, it is the management that is the problem - they are run by people who are under the instruction of the government. There was a lot of political interference in the past. Commercial contracts were awarded to cronies at inflated prices. It is run like a civil service - overstaffed and efficiency is non existent. Many mid level and top level managers are there just to draw a fat salary. The airline became a gravy train for the politically connected. What is sad now is that the new government has little interest in solving the problems. They just want to get rid of MAS and its problems.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 28, 2019 4:11 pm
by mercure1
Tony Fernandes says AirAsia has no plans to go after MAS.

https://asia.nikkei.com/Editor-s-Picks/ ... a-Airlines

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Thu Mar 28, 2019 4:26 pm
by lightsaber
janders wrote:
Prime Minister says “I love MAS, but it looks like we cannot afford it,”

https://www.scmp.com/news/asia/southeas ... g-malaysia

Wow... A government choosing to not throw good money after bad and instead spend on needed services. :faint:

Someone have him call Italy and India.

Lightsaber

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Sat May 04, 2019 8:55 pm
by LAXintl
Khazanah pumps in RM500 million (US $120mil) into Malaysia Airlines as takeover talks continue.

https://www.theedgemarkets.com/article/ ... talk-grows

=

Apparently, several parties showing interest in investing in MAS including a "local business tycoon".

One of the plans being put forward is keeping MAS a premium full-service carrier while FlyFirefly would be transformed into “Asean’s first ultra low-cost carrier focusing on millennials”.
Also group focus will be to double revenue derived from cargo from the current 7% and better support the region's e-commerce giants.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Sat May 04, 2019 9:19 pm
by Antarius
LAXintl wrote:
Khazanah pumps in RM500 million (US $120mil) into Malaysia Airlines as takeover talks continue.

https://www.theedgemarkets.com/article/ ... talk-grows

=

Apparently, several parties showing interest in investing in MAS including a "local business tycoon".

One of the plans being put forward is keeping MAS a premium full-service carrier while FlyFirefly would be transformed into “Asean’s first ultra low-cost carrier focusing on millennials”.
Also group focus will be to double revenue derived from cargo from the current 7% and better support the region's e-commerce giants.


As expected, the shut-down-MAS was nothing more than hot air. Shame.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Sat May 04, 2019 9:26 pm
by dcajet
LAXintl wrote:

One of the plans being put forward is keeping MAS a premium full-service carrier while FlyFirefly would be transformed into “Asean’s first ultra low-cost carrier focusing on millennials”.


They must have nor heard about Joon. Someone ought to tell them how that one went for Air France.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Sun May 05, 2019 5:56 pm
by LAXintl
While maybe not a shut-down, it does seem they are actively exploring a sale or partnership for MAS which is movement in the right direction.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Mon May 06, 2019 6:00 pm
by LAXintl
Prime Minister says "No feasible solution in sight for Malaysia Airlines"

https://www.nst.com.my/news/nation/2019 ... a-airlines

The prime minister said the losses and management of the national carrier were “so terrible” that it is difficult to turn it around.
“Everyone tells me we should do it this way or that way,” he told a press conference, “Nobody has come up with a proper solution that can actually succeed.”
Dr Mahathir said the previous government had pumped in RM6 billion, while the airline had laid off 6,000 employees and cut down its routes. He added that the airline industry was very competitive and many airlines had been sold off.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Mon May 06, 2019 6:33 pm
by strfyr51
Not every carrier can be run like we run airlines in the west. We don't have state identities in our carriers. They may carry state Names like Air France or British but they are purely Profit Driven carriers. That became evident to me when Swissair was allowed to go under and Crossair management took over to run the company,

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Mon May 06, 2019 10:06 pm
by mercure1
Cant complain that the PM is not brutally honest

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Tue May 14, 2019 10:13 pm
by mercure1
Analyst at Malaysia's largest bank Maybank calls for MAS and SIA to merge

https://www.thestar.com.my/business/bus ... s-analyst/
https://www.theedgemarkets.com/article/ ... on-analyst

For this to work he says there "would first need a change in the mentality of people that an airline had to represent their respective countries. A merger between them will see a lot of improvements in terms of scheduling. Besides, relocation of assets can also be optimised,”

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Tue May 14, 2019 10:28 pm
by LAXintl
While it might look good on paper, the reality is as the analyst states, the people involved will never let this happen.

New government in Malaysia is increasingly hostile towards Singapore, and won't hand their airline over.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Tue May 14, 2019 10:31 pm
by spinotter
mercure1 wrote:
Analyst at Malaysia's largest bank Maybank calls for MAS and SIA to merge

https://www.thestar.com.my/business/bus ... s-analyst/
https://www.theedgemarkets.com/article/ ... on-analyst

For this to work he says there "would first need a change in the mentality of people that an airline had to represent their respective countries. A merger between them will see a lot of improvements in terms of scheduling. Besides, relocation of assets can also be optimised,”


I hope SQ will never be persuaded to stick their neck into that noose ever again. Malaysia is inefficient and corrupt in its government and quasi-governmental bodies like MH. I don't think that mentality can be changed without a major expenditure of energy.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Tue May 14, 2019 10:54 pm
by RawSushi
mercure1 wrote:
Analyst at Malaysia's largest bank Maybank calls for MAS and SIA to merge

https://www.thestar.com.my/business/bus ... s-analyst/
https://www.theedgemarkets.com/article/ ... on-analyst

For this to work he says there "would first need a change in the mentality of people that an airline had to represent their respective countries. A merger between them will see a lot of improvements in terms of scheduling. Besides, relocation of assets can also be optimised,”


I don't get it. Just because Singapore and Malaysia are close to each other doesn't mean a merger would make sense. To me, MAS would be far more appealing as an acquisition target for an airline much further away who will see MAS as an opportunity to have a hub in this part of the world and greatly expand their network in a different region.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Tue May 14, 2019 11:05 pm
by janders
RawSushi wrote:

I don't get it. Just because Singapore and Malaysia are close to each other doesn't mean a merger would make sense. To me, MAS would be far more appealing as an acquisition target for an airline much further away who will see MAS as an opportunity to have a hub in this part of the world and greatly expand their network in a different region.


Linkage is historic.

They used to be a single nation and also one airline - MSA Malaysia Singapore Airlines, which was broken up in 1972 to create the individual SIA and MAS.

Singapore did not exist as a country until 1965.

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Tue May 14, 2019 11:14 pm
by RawSushi
janders wrote:
RawSushi wrote:

I don't get it. Just because Singapore and Malaysia are close to each other doesn't mean a merger would make sense. To me, MAS would be far more appealing as an acquisition target for an airline much further away who will see MAS as an opportunity to have a hub in this part of the world and greatly expand their network in a different region.


Linkage is historic.

They used to be a single nation and also one airline - MSA Malaysia Singapore Airlines, which was broken up in 1972 to create the individual SIA and MAS.

Singapore did not exist as a country until 1965.


I didn't know sentimental value was a major consideration in billion-dollar acquisitions!

Re: Malaysia Mulls Shutting Down or Selling MAS

Posted: Tue May 14, 2019 11:26 pm
by A350OZ
janders wrote:
RawSushi wrote:

I don't get it. Just because Singapore and Malaysia are close to each other doesn't mean a merger would make sense. To me, MAS would be far more appealing as an acquisition target for an airline much further away who will see MAS as an opportunity to have a hub in this part of the world and greatly expand their network in a different region.


Linkage is historic.

They used to be a single nation and also one airline - MSA Malaysia Singapore Airlines, which was broken up in 1972 to create the individual SIA and MAS.

Singapore did not exist as a country until 1965.


That's of course all true, but it does not in any way add commercial value in 2019.

I do not see what the upside for SQ or Singapore as a country would be in such a merger scenario. They already own most of the premium traffic from/to Malaysia, so why would they want to get involved here? For them, MH shutting down (unlikely) or continuing to struggle along are the much better options commercially.

RawSushi wrote:
To me, MAS would be far more appealing as an acquisition target for an airline much further away who will see MAS as an opportunity to have a hub in this part of the world and greatly expand their network in a different region.


Agree with that, but can't see what airline this would be. CX, EK, QF could all be a good fit geographically/strategically, but I do not see any of them signing up for such a distraction. QR maybe more likely.