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MAS dropping seven more international routes
Nicholas Ionides, Singapore (21Mar06, 01:18 GMT, 264 words)
Malaysia Airlines (MAS) is to drop seven more loss-making international passenger routes over the next few months as part of its ongoing restructuring.
The troubled state-owned carrier says in a statement that on 1 April it will drop services between Kuala Lumpur and both Ahmedabad and Kolkata in India, as well as services between Kuching and Pontianak in Indonesia. On 1 May it will drop services between Kuala Lumpur and both Manchester in the UK and Padang in Indonesia, while on 1 June it will drop services between Kuala Lumpur and both Vienna in Austria and Xian in China.
“Malaysia Airlines estimates that the ongoing route rationalisation will improve loads, increase yields and reduce losses by up to 303 million ringgit ($82 million) this financial year,” it says.
“Cost savings are expected to substantially offset revenue losses incurred by the rationalisation of routes.”
Loss-making MAS’ recently appointed new CEO, Idris Jala, unveiled a multi-year turnaround plan late last month in which he said a major route rationalisation was planned. MAS says around 60% of its international routes are unprofitable and early this month it unveiled its first round of route cuts, covering one-way London-Langkawi-Kuala Lumpur, London-Penang-Kuala Lumpur and Sydney-Kuching-Kuala Lumpur services as well as return Kuala Lumpur-Kuching-Perth services.
In addition to the seven additional routes that MAS is now dropping, the airline says it will reduce flight frequency on its Kuala Lumpur-Shanghai, Penang-Singapore, Kuala Lumpur-Sandakan, Kuala Lumpur-Nagoya, Kuala Lumpur-Frankfurt and Kuala Lumpur-Auckland routes.
It will also drop the domestic Kota Kinabalu stopover on services between Kuala Lumpur and both Osaka and Tokyo in Japan.
Source: Air Transport Intelligence news
Nicholas Ionides, Singapore (21Mar06, 01:18 GMT, 264 words)
Malaysia Airlines (MAS) is to drop seven more loss-making international passenger routes over the next few months as part of its ongoing restructuring.
The troubled state-owned carrier says in a statement that on 1 April it will drop services between Kuala Lumpur and both Ahmedabad and Kolkata in India, as well as services between Kuching and Pontianak in Indonesia. On 1 May it will drop services between Kuala Lumpur and both Manchester in the UK and Padang in Indonesia, while on 1 June it will drop services between Kuala Lumpur and both Vienna in Austria and Xian in China.
“Malaysia Airlines estimates that the ongoing route rationalisation will improve loads, increase yields and reduce losses by up to 303 million ringgit ($82 million) this financial year,” it says.
“Cost savings are expected to substantially offset revenue losses incurred by the rationalisation of routes.”
Loss-making MAS’ recently appointed new CEO, Idris Jala, unveiled a multi-year turnaround plan late last month in which he said a major route rationalisation was planned. MAS says around 60% of its international routes are unprofitable and early this month it unveiled its first round of route cuts, covering one-way London-Langkawi-Kuala Lumpur, London-Penang-Kuala Lumpur and Sydney-Kuching-Kuala Lumpur services as well as return Kuala Lumpur-Kuching-Perth services.
In addition to the seven additional routes that MAS is now dropping, the airline says it will reduce flight frequency on its Kuala Lumpur-Shanghai, Penang-Singapore, Kuala Lumpur-Sandakan, Kuala Lumpur-Nagoya, Kuala Lumpur-Frankfurt and Kuala Lumpur-Auckland routes.
It will also drop the domestic Kota Kinabalu stopover on services between Kuala Lumpur and both Osaka and Tokyo in Japan.
Source: Air Transport Intelligence news
