Malaysia Airlines to launch new premium carrier

Discussion in 'Other Airlines | Asia/Australia' started by sobore, Dec 7, 2011.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    http://www.cbsnews.com/8301-505245_162-57338218/malaysia-airlines-to-launch-new-premium-carrier/

    Loss-making Malaysia Airlines said Wednesday it would launch a regional premium carrier, spin off ancillary businesses and ax unprofitable routes under a business plan to return to the black by 2013.

    Chief Executive Ahmad Jauhari Yahya said the airline would cut capacity by 12 percent next year by suspending flights to Cape Town, Johannesburg, Buenos Aires, Dubai and some European cities. Officials said some 40 percent of the carrier's overall network is unprofitable.

    He said the flag carrier would focus instead on the premium market in Asia, which is growing despite intense competition from low-cost carriers.


    Read More: http://www.cbsnews.com/8301-505245_162-57338218/malaysia-airlines-to-launch-new-premium-carrier/
     
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  2. uggboy
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    uggboy Gold Member

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    Thanks for sharing, a most interesting development here with Malaysia Airline.:)
     
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  3. TRAVELSIG
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    Very interesting. Shame if they are cutting some routes.
     
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  4. sobore
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    sobore Gold Member

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    Probably a smart move with 40 percent of the carrier's network being unprofitable, still hurts the few using these routes. :(
     
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  5. cennas
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    cennas Gold Member

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    Cutting DXB is quite surprising. I thought I had read somewhere that Malaysia is one of the top destinations for Middle Eastern tourists. Guess they're taking other airlines.
     
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  6. TRAVELSIG
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    I am surprised about DXB as well- would have thought this was a premium route.
     
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  7. jbcarioca
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    jbcarioca Gold Member

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    It is, and is very important for Malaysia too. The "Malaysia My Second Home" program ( http://www.mm2h.gov.my/) has disproportionate Gulf residents among the participants, who get residence visa together with buying a house.

    However MH is joining OW and will be much more dependent on other OW carriers than on themselves on many routes, including DXB, which is dominated by EK after all. CX, QF and BA are all expected to switch some flights to KUL from BKK, and possibly even SIN. Interestingly MH has not canceled or even deferred on their A380's. The fat lady has not yet arrived, much less sung. OTOH, it is clearly time for MH to stop hemorrhaging money.
     
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  8. cennas
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    cennas Gold Member

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    I wonder if this new premium carrier will also be part of OW...
     
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  9. jbcarioca
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    jbcarioca Gold Member

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    I'm confident it will be. It reamins to be seen if it actually will be an independent carrier of just a repositioning of the medium-haul flights. There short-haul flights now are among the better in the region IMHO, but they are not money-makers.
     
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