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Tag: Malaysia Airlines

  • Firefly Halts Subang to Singapore Flights Through October 14 Due to Regional Haze

    Firefly Halts Subang to Singapore Flights Through October 14 Due to Regional Haze

    Firefly has extended the cancellation of all flights between Subang and Singapore through October 14. Thick haze across the cross-border corridor cut visibility.

    The suspension affects six daily return services between Sultan Abdul Aziz Shah Airport and Singapore’s Seletar Airport. The airline initially halted the route from October 10 to October 12. It then pushed the restart date back.

    Disrupted Schedules Across the Causeway

    Grounded flights cover services FY3122 and FY3123, FY3124 and FY3125, FY3126 and FY3127, FY3128 and FY3129, FY3130 and FY3131, and FY3132 and FY3133. Together, the pairings make up the carrier’s daily shuttle between the two secondary hubs.

    Firefly is rebooking affected passengers onto parent company Malaysia Airlines flights out of Kuala Lumpur International Airport, subject to seat availability. Travelers who decline the alternate itineraries can claim a full refund to their original payment channel within 30 working days.

    Air Quality Readings in Singapore

    Pollution levels in Singapore remained in the unhealthy range as operations were paused. Data from Singapore’s National Environment Agency showed 24-hour Pollutant Standards Index readings between 118 and 155 on Monday evening.

    Regional monitoring stations recorded the highest concentration in the central and western districts at 155. Eastern areas registered 139, southern sectors measured 122, and northern districts reported 118.

    Impact on Business Travel Corridors

    Subang to Seletar provides an alternative for executive and short-haul business travel between the two capitals. Halting the route pushes passenger volume back to Kuala Lumpur International Airport and Changi Airport.

    Turboprop operations at secondary city airfields face tighter weather and visibility minimums than major hubs equipped with advanced instrument landing systems. When visibility drops, regional feeder links take the earliest schedule cuts.

    Next Steps for Passenger Operations

    Operations teams continue to monitor visibility along the corridor ahead of the scheduled October 15 resumption.

    Plans call for restoring the six daily return services once air quality clears minimum safety thresholds at both airfields.

  • Malaysia Aviation Group Signs Deal to Buy Airbus Maintenance Unit

    Malaysia Aviation Group Signs Deal to Buy Airbus Maintenance Unit

    Malaysia Aviation Group has agreed to acquire aircraft maintenance specialist Sepang Aircraft Engineering from European planemaker Airbus in Kuala Lumpur. The deal gives the airline parent full control of the Malaysia-based maintenance, repair and overhaul facility.

    Terms and transaction timeline

    The buyer, which operates flag carrier Malaysia Airlines, signed a binding sale and purchase agreement with Airbus to take over the unit. Both parties target completion in 2027.

    Closing the purchase requires standard regulatory approvals. That includes sign-off from the Civil Aviation Authority of Malaysia.

    Building regional engineering capacity

    This takeover fits into the group’s long-term plan to expand engineering capabilities across Southeast Asia. Bringing the facility in-house gives the parent company direct control over heavy maintenance lines. It also covers airframe servicing operations.

    Airlines across Asia-Pacific face tight maintenance schedules and heavy hangar backlogs as commercial flight capacity rebounds. Dedicated infrastructure shields the carrier group from rising maintenance costs. It also secures reliable turnaround slots for its own fleet.

    Capturing third-party carrier revenue

    Malaysia Aviation Group plans to market engineering services from the acquired base to external commercial operators. Expanding the services portfolio generates non-passenger revenue from rival carriers that fly Airbus aircraft in the region.

    Third-party contracts offer stable cash flow to offset volatile fuel and ticket cycles. These external deals also position Kuala Lumpur to compete directly with aviation service hubs in Singapore and Jakarta.

    Regulatory milestones ahead

    The transaction follows a multi-year restructuring to stabilize the balance sheet and consolidate core operating assets. Regaining full operational control over domestic support facilities advances that overhaul.

    Malaysian civil aviation authorities will review the deal ahead of the targeted 2027 closing.

  • AirAsia Defends Finances After Reporting 831 Million Ringgit Q2 Loss

    AirAsia Defends Finances After Reporting 831 Million Ringgit Q2 Loss

    AirAsia co-founder Tony Fernandes defended the airline’s financial resilience in Hong Kong on Friday, arguing that higher fuel prices pose far less disruption than the pandemic.

    The carrier controls roughly 60 percent of Malaysia’s domestic aviation market and operates 100 aircraft across the country. Fernandes spoke after Malaysian authorities examined whether competing carriers could absorb domestic routes if financial pressures mount.

    Government Contingency Plans

    Malaysian officials approached Malaysia Airlines and Batik Air to evaluate whether either operator could absorb domestic capacity on short notice. The inquiry formed part of government scenario planning as regulators tracked the balance sheet of the region’s largest budget carrier.

    Fernandes rejected the feasibility of such a shift during his Hong Kong briefing, stating that rival operators cannot replace 100 operational aircraft overnight. The airline’s shares fell 21 percent on Thursday following reports of the government inquiries, bringing year-to-date equity losses past 70 percent.

    Fuel Costs and Second-Quarter Deficit

    Spike in aviation fuel prices delivered an 831 million ringgit net loss for the second quarter ended June 30. Jet fuel surged 66 percent quarter-on-quarter to an average of $183 per barrel following military conflicts in the Middle East.

    Foreign exchange losses compounded the deficit, adding 331 million ringgit in extra costs during the quarter. Balance sheet disclosures show current liabilities reached 18.4 billion ringgit ($4.52 billion) on June 30, matched against cash and bank balances of 954 million ringgit.

    Regional Route Recovery

    Passenger traffic metrics show steady volume across core Southeast Asian corridors despite fare increases. Load factors across the network reached 80 percent in the third quarter, supported by advance passenger bookings for the final three months of the year.

    Management expects operating margins to stabilize as ticket prices adjust upward to cover elevated fuel surcharges. Operating units in Indonesia, Thailand and the Philippines maintain stable booking patterns heading into peak year-end travel periods.

    Liquidity and Capacity Pressures

    Fernandes told investors the second quarter represented the peak operational strain for the group’s network. The carrier is relying on ticket repricing and regional flight demand to service short-term debts without cutting its scheduled Malaysian frequencies.

    Attention turns to fourth-quarter operating results and whether passenger demand absorbs the higher fare brackets needed to offset $183-a-barrel jet fuel.

  • AirAsia Rejects Bailout Talk and Targets 1 Billion Dollar Debt Refinancing

    AirAsia Rejects Bailout Talk and Targets 1 Billion Dollar Debt Refinancing

    AirAsia co-founder Tony Fernandes rejected calls for state aid on Friday. The budget carrier plans to raise over 1 billion dollars by January to refinance its balance sheet.

    His comments follow reports that Malaysian authorities approached rivals Malaysia Airlines and Batik Air. Officials wanted to evaluate whether the carriers could absorb AirAsia’s 60 percent domestic market share.

    Speaking at a briefing in Bangkok, Fernandes dismissed the need for intervention. He said operations remain cash generative despite severe cost inflation. The airline recorded current liabilities of 18.4 billion ringgit, or 4.52 billion dollars, against cash balances of 954 million ringgit as of June 30.

    Balance sheet pressures and jet fuel volatility

    Jet fuel prices climbed 66 percent in the second quarter to average 183 dollars per barrel. AirAsia operates without fuel hedges. That unhedged position leaves margins exposed to oil spikes that have already pushed carriers in North America and Europe into restructuring.

    Management is working to secure international bond financing alongside 700 million ringgit in domestic credit facilities. Fernandes confirmed that a Middle Eastern investor submitted a 1 billion dollar funding term sheet. Executives are negotiating terms before committing to an agreement.

    Rival positioning and market control

    Replacing AirAsia’s domestic footprint would require competitors to deploy roughly 100 aircraft immediately across Malaysian hubs. Neither Malaysia Airlines nor Batik Air possesses the spare fleet capacity to absorb that volume without starving regional routes.

    For consumer travel and airport retailers across Southeast Asia, an abrupt pullback in low-cost capacity would quickly contract footfall in secondary hubs. The risk rests on whether fare hikes can offset fuel costs before short-term debt repayments come due in late 2026.

    We’ve never received any government support in the last 25 years. And as of today, we haven’t got any and that’s it.

    Fleet restructuring and route adjustments

    AirAsia has cut unprofitable destinations and returned 25 older aircraft to lessors to lower monthly fixed overheads. No planes have been repossessed or involuntarily reclaimed by leasing firms during this period.

    Fleet strategy centers on replacing widebody A330 aircraft with narrower, more fuel-efficient A321LR and XLR variants. Stable passenger volumes across units in Thailand, Indonesia and the Philippines supported an average load factor of 80 percent during the third quarter.

    Current pressures trace back to mid-2026, when escalating fuel costs accelerated equity losses and triggered a 70 percent drop in the stock price. Malaysia’s Ministry of Finance subsequently hired Alton Aviation Consultancy to review the group’s financial position.

    Talks with Airbus on a strategic fleet update are scheduled for next month, ahead of concluding the primary debt restructuring round by January 2027.

  • Malaysia Asks Airlines to Prepare to Absorb AirAsia Routes

    Malaysia Asks Airlines to Prepare to Absorb AirAsia Routes

    Malaysia’s government has asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic routes and passengers if necessary, as authorities carry out contingency planning while monitoring the budget carrier’s financial health.

    The discussions come as the airline, acquired by Tune Air for RM1 (US$0.25) in 2001, faces mounting financial pressure from debt and a sharp rise in fuel costs.

    AirAsia has stated that it remains focused on maintaining stable operations and that underlying travel demand remains strong, while officials noted that no takeover or transfer of operations has been decided.

    Contingency Planning and Operating Pressure

    The carrier’s operating entity, Capital A, faces the combined burden of debt accumulated during the pandemic and high operating expenses. In the second quarter of 2022, the group’s average fuel costs jumped 68 per cent year-on-year to US$151 a barrel, consuming 51 per cent of aviation revenue. Currency weakness across Southeast Asian markets against the US dollar has amplified those costs, particularly for aircraft maintenance and dollar-denominated aircraft leases.

    Both AirAsia X and parent entity Capital A previously fell into Bursa Malaysia’s PN17 classification for financially distressed listed firms. AirAsia X completed a debt restructuring in March 2022, but Capital A remains under requirements to regularise its financial condition to preserve its stock exchange listing.

    Shifting Regional Capacity Dynamics

    For regional travel retail, airport concessionaires, and tourism operators, any capacity reduction from AirAsia would alter passenger footfall patterns overnight. AirAsia built the low-cost model that feeds primary transit hubs like Kuala Lumpur International Airport Terminal 2 and regional secondary airports across Thailand, Indonesia, and the Philippines. If routes are transferred or curtailed, legacy carriers and competing hybrid operators will absorb higher-yielding corporate traffic while budget-sensitive discretionary travel slows down.

    Rival full-service and hybrid carriers stand to gain market share on key domestic trunk routes, yet taking over budget volume presents immediate fleet and staffing hurdles for Malaysia Airlines and Batik Air. Low-cost passenger yields cannot easily support legacy cost structures without state subsidies or substantial fare increases. The direct risk rests with consumer ticket pricing, where reduced seat capacity inevitably pushes up average domestic fares.

    From Token Purchase to Pandemic Shock

    Entrepreneurs Tony Fernandes and Kamarudin Meranun bought AirAsia through Tune Air in September 2001 for a token RM1, absorbing RM40 million in debt. The carrier transformed regional aviation by introducing high-density Airbus A320 fleets, online direct bookings, and low fares, surpassing 500 million passengers carried by 2018.

    Financial strains began surfacing before the global health crisis. AirAsia reported a net loss of approximately RM283 million in 2019 after fuel price increases added RM703 million to its operating costs in 2018. When border closures halted international travel in 2020, group revenue dropped 74 per cent to RM3.1 billion and full-year net losses widened to RM5.9 billion, forcing the shutdown of AirAsia Japan and a retreat from AirAsia India.

    Regulators and investors are tracking Capital A’s submission of a complete regularisation plan to exit PN17 status on Bursa Malaysia, alongside fleet reactivation milestones across its Southeast Asian subsidiaries.

  • Malaysia Airlines offers up to 30% savings in mid-year marvels sale

    Malaysia Airlines offers up to 30% savings in mid-year marvels sale

    Malaysia Airlines (MAS) is offering customers up to 30% savings on both international and domestic routes starting from Tuesday until May 15, 2017 under its “Mid-Year Marvels” promotion.

    The national carrier said on Monday  the offers were up for grabs on all Malaysia Airlines’ distribution channels for travel from May 19 to Oct 31, 2017 on business and economy class on all international destinations.

    MAS said all-inclusive return fares on economy class from KL International Airport starts from RM 1,469 to Sydney, from RM 1,379 to Narita and from RM 1,079 to Beijing.

    The airline is also offering all-in, one-way promotions from RM99 to all domestic destinations, during selected periods throughout the year.

    The economy class fares come with no hidden charges or credit card fees for online ticket purchases and includes a generous baggage allowance of 30kg and complimentary meals.

    MAS added the Mid-Year promotion includes business class fares, starting from RM999 to Denpasar, from RM2,799 to Xiamen and from RM11,399 to London. As for domestic routes, such as Kota Kinabalu and Labuan, the fares are from RM 839 and RM1, 455 respectively. The promotion on business class to domestic destinations is valid for travel from May 11 to July 31, 2017.

    Its chief commercial officer, Arved Nikolaus von zur Muehlen said the fantastic deals start from as low as RM 99 all-in, one way on all its domestic routes.

    He said customers could also choose a business class trip to Denpasar, Bali from only RM999 all-in, return.

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  • Malaysia Airlines and AirAsia, once contrasting, now face same crisis

    Malaysia Airlines and AirAsia, once contrasting, now face same crisis

    Struggling flag carrier Malaysia Airlines’ previous attempt turn itself around collided with low-cost local rival AirAsia Group’s rise. Now, both companies have run into the same turbulence.

    Malaysia Airlines, which has yet to recover from two 2014 tragedies that made global headlines, faces a growing risk of being forced to halt flights unless it secures aid. But the state has frowned on the idea of another bailout.

    A group of creditors recently rejected a proposal by Malaysia Airlines to restructure its 16 billion ringgit ($3.85 billion) in liabilities. This comes after the company made deep pay cuts for management and pilots, as well putting staff on unpaid furloughs to reduce costs as the coronavirus pandemic paralyzed global air travel.

    This disruption has also clouded the prospects for leaner AirAsia Group, which together with the flag carrier holds a majority market share in the country.

    “Our partners and creditors will have to sacrifice for the better of the future,” Izham Ismail, group CEO of Malaysia Airlines, told The Edge Malaysia newspaper in mid-October. “If they don’t want to help themselves to survive, I have no choice but shut it down.”

    Malaysia Airlines revealed that it entered into debt restructuring negotiations with creditors in early October. The airline called on leasing companies and suppliers to cooperate with the turnaround effort. If the creditors had agreed, the restructuring would have been completed within the next few months, according to Malaysia Airlines’ plan.

    The government has expressed its unwillingness to embark on another public-sector bailout of the national carrier, which is fully owned by the sovereign wealth fund Khazanah Nasional.

    “The Ministry of Finance will not be injecting any cash or any capital into Malaysia Airlines through Khazanah,” said Finance Minister Tengku Zafrul Aziz. A proposal has been floated to liquidate the airline and transfer a portion of the assets and staff to Firefly, the group’s low-cost carrier.

    Khazanah first took over Malaysia Airlines in 2001 following the ravages of the Asian financial crisis, holding a stake of 69%.The carrier’s fortunes turned again in 2014, when flight MH370 disappeared mysteriously en route from Kuala Lumpur to Beijing. This was followed months later by flight MH17 being shot down over Ukraine.

    The two tragedies drove away passenger traffic, prompting Khazanah to acquire the remaining shares in Malaysia Airlines and fully nationalize the carrier. Malaysia Airlines laid off roughly a third of its staff in a bid to revive its earnings.

    This previous restructuring effort never bore fruit because of competition from powerful rival AirAsia. The budget carrier made great strides in the 2000s with its low fares, eventually gaining control of half the domestic market.

    Malaysia Airlines, meanwhile, has lost money since 2011. Part of the problem is Malaysia’s unstable political situation. Former Prime Minister Mahathir Mohamad’s government sought capital and operational tie-ups with foreign carriers after determining that Malaysia Airlines could not heal itself. Japan Airlines was seen as a leading candidate to sponsor a turnaround due to the company’s experience recovering from bankruptcy.

    But Mahathir abruptly resigned and was succeeded by Muhyiddin Yassin this March. Not only has the pandemic sapped the finances of any potential sponsors, but Muhyiddin has his hands full maintaining his hold on power. Malaysia Airlines’ restructuring took a back seat.

    “None of the restructuring went deep enough,” said Brendan Sobie, an independent analyst. He added that it is too early to tell if the proposed debt restructuring plan would be sufficient.

    “All airlines face an incredibly challenging outlook,” Sobie said. “A lot will depend on how quickly the market recovers and if it fully recovers.”

    AirAsia planes sit at Kuala Lumpur International Airport on Oct. 6. The budget airline has not been immune to the effects of the pandemic   © Reuters

    Because Malaysia Airlines is the flag carrier, observers believe the government will ultimately be forced into a new bailout. But the damage to corporate value may have already been done by the drawn-out restructuring process.

    Other flag carriers in the region have been faster to rehabilitate. Singapore Airlines, which is majority-owned by government investment group Temasek Holdings, came out with a $10.5 billion fundraising plan in March that leans on existing shareholders. Thailand, which holds 51% of Thai Airways International, signed off on a court-supervised rehabilitation process for the carrier in May.

    Long profitable private-sector carrier AirAsia has not been immune to the effects of the pandemic, and it has sought to steer out of its slump.

    The group founded by CEO Tony Fernandes won Malaysian state backing of a 1 billion ringgit loan in October. Early that month, the group’s long-haul carrier AirAsia X applied in court for a debt forgiveness plan that would slash 63.5 billion ringgit in liabilities, including aircraft purchase commitments, to just 200 million ringgit.

    The plan still needs the approval of creditors holding 75% of the debt. AirAsiaX said the debt relief is needed “to avoid a liquidation and to allow the airline to fly again.”

    AirAsiaX — which offers flights to Australia, Hawaii and other Asia-Pacific destinations — operated at a loss in the most recent two years.

    AirAsia Group said in October it would end its Japan operations, and analysts expect further cutbacks in scale. The group posted a 992 million ringgit net loss for the April-June quarter on a 96% plunge in revenue.

    “AirAsia was a profitable airline and was potentially sustainable had it not added capacity rather recklessly,” said Nungsari Ahmad Radhi, ex-executive chairman of the Malaysian Aviation Commission. “It got to the point where the seat growth probably outstripped demand growth. The pandemic was a fatal blow.”

  • Malaysia Airlines and AirAsia limit number of flights till March 31

    Malaysia Airlines and AirAsia limit number of flights till March 31

    Malaysia Airlines will significantly reduce its overall network, following the nationwide movement control order from March 18 to 31.

    International flights to India are suspended until the end of the month and flights to the Philippines are suspended between March 21 and 31, following the respective governments’ ban on travel to and from Malaysia.

    Malaysia Airlines group chief executive officer Captain Izham Ismail said the situation has been “rather fluid” since the airline has had to make last-minute cancellations to abide by the restrictions.

    “We are doing our best to re-route passengers via reallocation onto other carriers. We are also adjusting our low-load flights by canceling and merging them to manage costs while managing our customer expectations, ” he said.

    Prior to the order, Malaysia Airlines has suspended services to Saudi Arabia, South Korea, and parts of China (Beijing and Daxing), as well as the Kota Kinabalu-Shanghai route due to border controls.

    The carrier also reduced capacity to Australia and New Zealand due to the self-isolation policy of the two countries.

    To date, the company has canceled over 4,000 flights.

    “Our Global Contact Centre has been at the brunt of this situation with the number of calls peaking at 25,000 daily and up to 2,000 e-mail daily in the past three weeks, ” Izham said.

    He added that it will take the company longer to process refunds due to the sheer volume of requests.

    “I assure them that we are not here to take advantage of the situation. In fact we are one of few airlines that have offered unlimited flexibility in travel date change and waiver of certain fees, ” Izham said.

    Due to the significant capacity cut, Malaysia Airlines and all sister companies under the Malaysia Aviation Group’s back-office operations have also been reduced alongside flight and airport operations.

    A majority of its workforce globally are working from home in line with various governments’ requirements.

    Passengers with bookings may initiate changes online via the Covid-19 waiver assistance form available on the carrier’s website.

    Meanwhile, AirAsia has also significantly cut down its number of domestic and international flights.

    “AirAsia will be operating a limited number of domestic and international flights from today until 31 March, which are subject to change due to the fluidity of the current situation.

    “Affected guests will be promptly notified via email or SMS. AirAsia strongly encourages guests to update their contact details using the “My Bookings” feature on airasia.com to ensure that they receive timely notifications,” the airline said in a statement.

    For further and latest information regarding options and eligibility related to COVID-19, AirAsia guests can visit the Covid-19 Customer Guide on its website.

    A quick look at their booking page shows that there are only two flights a day from Kuala Lumpur to Kota Kinabalu, Kuching and Penang (and vice versa). Flights to other cities and towns including Johor Baru, Kota Bharu, Alor Setar, Kuala Terengganu, Sibu, Miri and Bintulu have all been suspended until April 1.

    Currently, there is one flight a day to Sandakan, Tawau and Labuan from KL but even these routes may be suspended within the next few days.

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  • Malaysia Airlines launches business suite

    Malaysia Airlines launches business suite

    Malaysia Airlines announced the rebranding of its First Class cabin to Business Suite offering passengers new levels of luxury with ample cabin space and privacy. “The new Business Suite was introduced in response to the growing demand of our guests. Our target is to enable the frequent flyer, looking for enhanced comfort, to now be able to enjoy a premium experience at competitive prices,” Malaysia Airlines group CEO Captain Izham Ismail said in a statement.

    “We are confident that our new Business Suite will change the way people travel in business class,” Izham added.

    Starting Dec 12, 2018, the Business Suite will be available on all of the airline’s A350-900 and A380-800s.

    The suite comes with a dedicated check-in counter, access to Malaysia Airlines premium First Class Lounge, 50kg baggage allowance as well as fine-dining experience onboard.

    The Business Suite cabin will be available on the London, Tokyo, Osaka route and on the Sydney and Seoul route during the winter season.

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  • Malaysia Airlines’s progress in line with recovery plan

    Malaysia Airlines’s progress in line with recovery plan

    Although relatively little is being said and publicised about Malaysia Airlines Bhd’s (MAB) recovery plan, a substantial amount of progress has actually been achieved in its business operations in line with the plan, which aims to revive the country’s national carrier and sustain its profitability.

    Group CEO Captain Izham Ismail said improvements in terms of cost base, productivity, information technology (IT) systems and customer experience were among the achievements chalked up by the company, thanks to the five-year Malaysia Airlines Recovery Plan.

    In an interview with Bernama, he said plans had been put in place to address the airline’s performance going forward and this had yielded improved performance for the first half of this year.

    The airline performed stronger in the first six months of this year than in the same period of 2017, adding that the key focus for the airline in financial year 2018 included driving revenue.

    “This will be underpinned by continuous improvement in customer experience, product quality and operational excellence while maintaining a productive and competitive cost base,” he said.

    According to Izham, MAB’s cost base has been significantly changed to bring it in line with its peer network airlines.

    As of today, the group has one of the lowest cost bases among its peer network airlines on a cost per available seat kilometre basis.

    The company has also seen material gains in productivity with a more competitively sized workforce, which is further complemented by a commitment towards continuous talent development.

    “A stronger local talent pool has now been established,” he said.

    On the group’s IT system, which is an integral part of overall airline operations, Izham said the complete overhaul had now been completed.

    He said the new Passenger Service System and migration to a cloud-based data centre had improved reliability and cyber security, as well as enhanced agility and better time-to-market.

    He said customer experience had also improved with market-driven metrics based on the company’s customer survey and net promoter measures showing significant positive gains over the last two financial years.

    On the operational front, Izham said the supply chain in engineering had been significantly tightened, which had helped the airline’s on-time performance, although it was still impacted by external factors beyond its control.

    “Since the set up of NewCo (MAB, which took over the operations, assets and liabilities of Malaysian Airline System Bhd or MAS) in 2015, we are showing progress and have recorded a double-digit compound annual growth rate growth (of 21%) over the last three years.

    “That is improvement straight to the bottomline,” he explained.

    MAB managed to record “steady year-on-year (y-o-y) performance” in the second quarter of 2018, with a marginal yield improvement, while revenue per available seat kilometre remained steady with a growth of 2% y-o-y.

    Going forward, Izham said MAB would continue to focus on the customer while making sure to deliver a strong schedule and great service for its customers.

    The airline also aimed to build a diverse Asia-Pacific network with a simplified fleet structure and operations to ensure consistency, and removing complexity in service delivery as well as pursuing a gradual and progressive growth strategy across markets, he said.

    Commenting on Khazanah Nasional Bhd’s plan to relist the national carrier as part of the recovery plan sometime from now until 2020, he said “the plan has always been to re-list Malaysia Airlines”.

    “We are working hard to stabilise the company and return it to profitability before any initial public offering plans can be considered,” he added. Khazanah owns 100% equity interest in MAB.

    In 2014, the sovereign wealth fund had injected investments amounting to RM6 billion to support the airline’s five-year turnaround plan with the aim of returning MAB to profitability by late 2017 and to relist the company by 2018 or 2019.

    Khazanah de-listed MAS from Bursa Malaysia on Dec 31, 2014.

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  • Malaysia Aviation appoints Philip See as Firefly CEO, as Ong out

    Malaysia Aviation appoints Philip See as Firefly CEO, as Ong out

    Malaysia Aviation Group (MAG) has appointed Philip See as the new CEO of Firefly, effective Jan 1, 2019. Philip will replace Ignatius Ong who joined Malaysia Airlines as group chief revenue officer in June 2018. Ignatius has been double-hatting as CEO of Firefly and group chief revenue officer.

    Philip, whose appointment was announced internally earlier, is currently the Head of Strategy and Network for Malaysia Airlines, reporting directly to the group CEO. He joined the airline in 2015 from consulting firm McKinsey & Company, where he was an associate.

    He is however, no stranger to the group having previously served in the Turnaround Management Office (TMO) in Malaysia Airlines, back in 2004. Under the TMO he was responsible for implementing the Business Turnaround Plan and consequently the Business Transformation Plan. Philip left the airline in 2010 and rejoined Malaysia Airlines in 2015 as a Network Planner.

    In his role as group chief revenue officer, Ignatius oversees Sales and Revenue Management for the entire group. Ignatius has almost 15 years of professional experience in the aviation industry and is no stranger to revenue management having previously covered route and revenue under the then Turnaround Management Office. He has also headed the whole portfolio of Sales, Distribution and Marketing under the Project Management Department of Malaysia Airlines.

    Other changes in the management also include Ibrahim Mohamed Salleh as CEO of MABKargo effective Sept 1, 2018 and Hazman Hilmi Sallahuddin as CEO of Project Amal effective Oct 1, 2018.

    Ibrahim has over 20 years of experience in various fields within Cargo Handling with the company. Prior to his appointment as CEO MABKargo, he was COO of PT Jasa Angkasa Semesta (a subsidiary of SATS Limited, Singapore).

    Hazman was with Khazanah Nasional Bhd where he served in various roles across the organisation. This included Senior Vice President of Khazanah Europe Investment Limited based in London.

    Malaysia Aviation Group CEO Izham Ismail said, ”I am confident that the new leadership will bring new energy and purpose to the business. The diversity of our new leaders, their backgrounds and experience will help us reach our goals as a group.”

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  • Malaysia Airlines, Jet Airways expand codeshare agreement

    Malaysia Airlines, Jet Airways expand codeshare agreement

    Malaysia Airlines and Jet Airways have expanded their codeshare agreement to offer consumers a wider network of destinations effective Sept 24.

    Malaysia Airlines said in a statement that the wider network covers new routes with departures from Mumbai and Hyderabad to cities in India as well as Southeast Asia destinations including Hong Kong, Bangkok and Singapore.

    The agreement is an extension from existing codeshare with Malaysia Airlines on Malaysia Airlines routes from Kuala Lumpur to Mumbai, Bangalore, Hyderabad, Delhi and Chennai.

    “We are delighted to announce the codeshare expansion with Jet Airways to broaden our global reach into India, the third largest market in the aviation industry. Together with Jet Airways, we will be offering seamless connectivity to fast growing cities in India including Aurangabad, Dabolim (Goa), Ahmedabad, Kochi and Kolkata,” said Malaysia Airlines’ chief revenue officer Ignatius Ong.

    “This codeshare agreement serves as an important element towards Malaysia Airlines’ proposition of being the preferred way to fly to, from and around Malaysia,” he said.

    Malaysia Airlines’ codeshare on Jet Airways services include flights from Hyderabad to Bangalore as well as flights from Mumbai to Ahmedabad, Aurangabad, Bangalore, Chennai, Delhi, Goa, Hyderabad, Jaipur, Kochi and Kolkata.

    Meanwhile, Jet Airways codeshare on Malaysia Airlines services include flights from Kuala Lumpur to Bangkok, Hong Kong and Singapore.

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  • Malaysia’s MAS’ 787 deal lapses, considering future widebody purchases

    Malaysia’s MAS’ 787 deal lapses, considering future widebody purchases

    Malaysia Airlines Bhd said a provisional deal to purchase eight Boeing Co 787 jets had lapsed and the airline was in talks with planemakers about the future of its widebody fleet.

    The national carrier last year signed a memorandum of understanding (MoU) with Boeing to purchase the 787 jets valued at US$2.25 billion (RM9.3 billion) at list prices during a visit to Washington by former prime minister Datuk Seri Najib Abdul Razak.

    In April, It is reported the carrier had expressed interest in buying 20 to 30 widebody jets from either Boeing or its rival Airbus SE that could expand or replace the Boeing MoU.

    The lapse of the MoU was confirmed by a Malaysia Airlines (MAS) spokesman today. A Boeing spokesman declined to comment on ongoing discussions with customers.

    Malaysia Airlines CEO Captain Izham Ismail said that the airline had issued a request for information from aircraft makers for new generation widebody jets, without specifying how many it intended to buy.

    It was open to the advice of the manufacturers on the fleet size the airline would need for further network development, he said, adding any order decision would be made in the fourth quarter at the earliest.

    The airline currently has an all-Airbus widebody fleet including A330s, A350s and A380s.

    Sources said in July that the airline was tapping banks to fund about nine Boeing 737 MAX planes in what would be the airline’s first jet financing with lenders since it was restructured more than three years ago.

    The airline last month said in a quarterly update that it was facing pressure from higher fuel prices, foreign exchange volatility and overcapacity in the domestic market, as well as a shortage of pilots, but it was putting in place strategies to return to a profit next year.

  • Malaysia Airlines to capture 50% moslem market share in Malaysia, Indonesia

    Malaysia Airlines to capture 50% moslem market share in Malaysia, Indonesia

    Malaysia Airlines Bhd (MAB) aims to tap into 50% of the umrah pilgrimage market in Malaysia and Indonesia with 270,000-290,000 umrah pilgrims projected to make their pilgrimage to the holy land in the upcoming pilgrimage season.

    The national carrier entered into a charter service deal with a coalition of four umrah tour operators comprising KRS Travel Sdn Bhd, ATS Global Travel & Charter, Ecoriths Leisure Travel &Tour and Rayhar Travels Sdn Bhd to provide air charter services during the umrah season beginning October 2018 until June 2019.

    MAB group CEO Captain Izham Ismail said all the 149 flights will be operated via its Airbus A380-800 aircraft. The agreement will see the carrier transporting 70,000 pilgrims from Malaysia and neighbouring countries such as Indonesia.

    The direct flight are from Kuala Lumpur to Jeddah and Madinah in Saudi Arabia.

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  • Malaysia Airlines Q1 revenue up 2%, rising fuel prices a concern

    Malaysia Airlines Q1 revenue up 2%, rising fuel prices a concern

    Malaysia Airlines Berhad (MAB) reported a 2% year-on-year growth in revenue for the first quarter (Q1) ended March 31, 2018 with 6.6% yield improvement despite the significant competition in both international and domestic sectors.

    Despite improvements in the quarter, Malaysia Airlines Group CEO Izham Ismail said the airline is preparing itself for a tough year ahead with competition and exchange rate volatility.

    “Escalating fuel prices remain a particular concern, up almost 100% from early 2016.”

    Its revenue per available seat kilometre (RASK) also grew 3.5%, but load factor declined to 75.4% from 79.4% in the same quarter a year ago on the back of a moderation in domestic load factor due to its focus on higher yield passengers.

    A total of 3.2 million passengers were carried in Q1 2018, 11.1% lower than the 3.6 million achieved in Q1 2017.

    Izham said MAB continues to see better yield and RASK after a challenging 2017, which saw the adverse exchange rate swing.

    “Nevertheless, taken on aggregate, the company has made progress on the execution of the Malaysian Airlines Recovery Plan (MRP). This includes an improved cost base for the airline, bringing it in line with its peer network airlines.”

    Moving forward, he said the group will continue to drive yield by focusing on the premium segment to cushion the airline from rising costs.

    “Overall, we expect to see improvements in our performance in the later part of this year and against this backdrop, we are working hard to deliver sustained profitability in 2019.”

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