Category Archives: Malaysia Airlines

Malaysia Airlines and Qatar Airways expand their codeshare partnership

Malaysia Airlines Boeing 737-8H6 WL 9M-MXP (msn 40153) DPS (Pascal Simon). Image: 943657.

Malaysia Airlines and Qatar Airways have announced the expansion of their codeshare partnership, allowing passengers to travel to more destinations in Malaysia, Qatar, Indonesia, Australia and the United States of America. Sale and travel under the expanded agreement commenced on September 18, 2018.

Under the new codeshare agreement, Qatar Airways code will be placed on 19 of Malaysia Airlines flights. Qatar Airways customers can now fly seamlessly on one booking reference to new Malaysian cities such as Kuantan, Kota Bharu, Miri and 10 other domestic cities in Malaysia. Besides seamless connectivity, passengers will also benefit from through baggage check-in and other benefits such as frequent flier miles accrual.

Malaysia Airlines passengers can also take advantage of Qatar Airways presence in the Americas, with the new codeshare extending to cities such as New York City, Miami, and Boston among others. Malaysia Airlines will place its MH code on 10 new destinations served by Qatar Airways.

Qatar Airways currently offers a triple-daily direct service to Kuala Lumpur and a nonstop four-times-weekly flight to Penang.

The national carrier of the State of Qatar, Qatar Airways is one of the world’s fastest-growing airlines. Qatar Airways currently operates a modern fleet of more than 200 aircraft via its hub, Hamad International Airport (HIA) to more than 150 destinations worldwide. Earlier this year, Qatar Airways revealed a host of forthcoming global destinations in line with its expedited expansion plans, including Gothenburg, Sweden; Da Nang, Vietnam and Mombasa, Kenya.

Top Copyright Photo: Malaysia Airlines Boeing 737-8H6 WL 9M-MXP (msn 40153) DPS (Pascal Simon). Image: 943657.

Malaysia Airlines aircraft slide show:

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Malaysia Airlines implements SkyBreathe® to reduce its carbon emissions and improve fuel savings

Malaysia Airlines, the country’s national carrier, in collaboration with OpenAirlines, announced the successful implementation of SkyBreathe® Fuel Efficiency, an advanced system to reduce fuel costs and CO2 emissions of their fleet.

The cost of fuel is the arch enemy of the airline industry and since last summer, crude oil prices have gone up. The spike in fuel prices, generally airlines’ biggest cost, is quickly eroding carriers’ profits and jeopardizing their development.

For this reason, Malaysia Airlines has chosen to adopt the latest digital technology with SkyBreathe® to monitor the fuel efficiency of their operations and improve both economic and environmental performance.

Every day, the fuel management software will automatically collect and analyze the massive quantity of data from the 79+ aircraft operated by the airline and combine them with data from other sources including payload, weather conditions, flight path and ATC constraints.

Using this solution, Malaysia Airlines will benefit from a thorough understanding of its fuel efficiency through all phases of a flight to identify the most relevant saving opportunities. Based on this information they will be able to implement the most efficient procedures on ground (pushback, taxi, takeoff, APU, etc.) and during flight (climb, cruise, approach, landing, etc.) without compromising safety.

Malaysia Airlines joins more than 28 other airlines across the world using SkyBreathe®, including Norwegian, Cebu Pacific, Atlas Air, flydubai, Royal Brunei Airlines and Atlas Air.

About OpenAirlines:

OpenAirlines is an international software company based in Toulouse, with offices in Hong Kong, and Miami. It provides consulting and software solutions for airlines flight operations. Since 2006, OpenAirlines help airlines to save fuel and CO2 emissions (SkyBreathe®), manage crews (CrewIntelligence™ and CrewPad™) and fleet (OptiFleet™).

Today, 28 airlines all over the world use OpenAirlines’ software. In 2017, their customers saved more than 50 million USD and 300,000 tons of CO2.

Malaysia Airlines reports its financial progress in the first quarter

Malaysia Airlines Airbus A330-323 9M-MTF (msn 1281) DPS (Pascal Simon). Image: 942670.

Malaysia Airlines Berhad (MAB) issued this financial report on the first quarter:

Malaysia Airlines Berhad (MAB) reported a year-on-year (YoY) yield improvement of 6.6% in the first quarter ended March 31, 2018 despite the significant competition in both international and domestic sectors. Revenue per Available Seat Kilometre (RASK) also followed suit, showing healthy growth of 3.5% YoY with overall total revenue also growing by 2% YoY.

Malaysia Airlines Group (MAG) Chief Executive Officer Izham Ismail (GCEO) said, “Our performance is on budget for quarter one and the concerted focus on yield, which began in the second half of the previous year, continues to see results with an overall improvement in yield and RASK.

I am heartened by the relatively encouraging first quarter of 2018, especially after a challenging FY2017 which saw the company underperform against budget. Our performance last year was hampered by an adverse exchange rate swing which saw the depreciation of the Malaysian Ringgit (RM) against the US dollar (USD). With more than 50% of our cost structure in USD, the depreciation had a significant impact on the company’s overall financial performance. 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.

Despite improvements in the quarter, 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. Moving forward we will continue to drive yield by focussing 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,” he added.

 

Q1 performance YoY

  Actual Q1 2018 Actual Q1 2017
Passengers (m) 3.2 3.6
Passenger Load Factor (%) 75.4% 79.4%
Passenger Yield (sen) 22.6 21.2
On-Time Performance (%) 76% 78%
Total RASK (sen) 20.5 19.8

 

Passenger Load factor

  Load % Q1 2018
Load % Q1 2017
International 77.2% 81.1%
Domestic 64.1% 70.8%

Malaysia Airlines saw an encouraging trend of yield improvement continue for both international and domestic sectors due to a concerted focus on premium segments of business class seats and corporate sales. This comes on the back of sustained RASK and yield improvement over several preceding quarters. Yield in the quarter was up 6.6% YoY. The increase in yield offset the reduction in load factor and also resulted in RASK improvement of 3.5% YoY. The growth was on the back of improved yield management and pricing segmentation.

Though overall, the quarter was a positive one, looking forward, the second quarter is expected to be weaker and more challenging due to the soft demand during Ramadan.

Investing in the Customer

Malaysia Airlines Airbus A380-841 9M-MNC (msn 084) LHR (Rolf Wallner). Image: 942665.

Above Copyright Photo: Malaysia Airlines Airbus A380-841 9M-MNC (msn 084) LHR (Rolf Wallner). Image: 942665.

The quarter saw Malaysia Airlines replace our Airbus A380 (above) operations with the Airbus A350-900 aircraft on the London route. The new aircraft, offering the latest in technology, provides unrivalled levels of operational efficiency, with a 25% reduction in fuel burn and emissions and lower maintenance costs. The aircraft also offers an improved experience on board.

The flagship A350 aircraft is equipped with Wifi on-board, the first for Malaysia Airlines, and includes new in-flight entertainment systems with modern and improved functionality. It has also refreshed its first and business class amenities and offers better comfort in Economy.

The airline’s satellite Golden Lounge in KLIA reopened in Febuary 2018 with a new look and upgraded facilities. The lounge design reflects the rich heritage of Malaysia alongside modern facilities which includes amongst others, more charging stations, plug points and seating areas. The satellite Golden Lounge is the latest lounge to have undergone renovation since the last quarter of 2017, following upgrades to regional and domestic Golden Lounges.

Alongside this, the ‘Best of Malaysia’ range of dishes was introduced at the Golden Lounges in January 2018. Through this initiative, Malaysian favourites such as Rojak Buah, Chicken Kurma with Nasi Hujan Panas and Jelatah and Ayam Perchik with Nasi Ulam, were introduced and incorporated into the airlines’ in-flight menu. A specially designed Chinese New Year festive menu on selected routes featuring Yee Sang and other symbolic dishes were also offered in First, Business and Economy classes in Q1 2018.

A Customer Experience Task Force was set up in November 2017 to address the gaps across all customer touch points based on customer feedback. A Delay Handling Lab was also organized in this quarter as part of the airline’s ongoing efforts to provide customers with a more seamless travel experience and to improve disruption handling. These initiatives contributed to a positive improvement in the airline’s overall Customer Satisfaction Index (CSI) scores which rose to 74% in this quarter, as compared to 70% in Q4 2017. Concerted efforts will carry on to ensure continued improvements across all customer touchpoints.

The quarter also saw the airline introduce its new brand campaign anchored around Malaysian Hospitality. The aim of this campaign is to re-emphasise the truly Malaysian experience that encompasses all aspects of the airline’s customer experience, reflected in its products and services.  The campaign will be rolled out in the next quarter via the release of a new TV commercial across all platforms.

Technology driven company

In its continuous journey towards becoming a digital airline, Malaysia Airlines rolled out several key technological enhancements in the quarter. The airline recently unveiled an enhanced MHupgrade which provides a quicker and more seamless bidding system for customers to upgrade flights.  Also introduced in the quarter was the Amadeus Anytime Merchandise initiative to boost ancillary revenue whilst offering customers more convenience in purchasing travel insurance and pre-booked seats. The airline also rolled out its Multi-Currency Platform enabling a more stable currency conversion for the airline whilst allowing customers the flexibility of paying for flights in their preferred currency.

Other initiatives introduced in the quarter include the iCrewHack which was launched to simplify and improve cabin crew reporting and work processes. The airline also held a Digital IT Junior Disruptor Programme, a collaborative programme with children and teens between the ages of 12 and 17, aimed at exploring and understanding the needs of the traveller of tomorrow. In addition to this, a series of technology talks and collaborations with Microsoft was also carried out in the first quarter, with the aim of saving time, travel and cost for employees. These programmes will continue throughout the year in line with the airline’s aim of providing its employees with collaborative tools and technology to boost productivity and reduce operational costs.

Malaysia Airlines Boeing 737-8H6 WL 9M-MLT (msn 39334) DPS (Pascal Simon). Image: 942667.

Above Copyright Photo: Malaysia Airlines Boeing 737-8H6 WL 9M-MLT (msn 39334) DPS (Pascal Simon). Image: 942667.

Fleet

The Malaysia Airlines fleet has undergone a transformation since the start of the MRP, in line with the airline’s core focus of Asia Pacific.

Whilst the Boeing 737-800s continue to provide domestic and regional connectivity, the widebody technology has now been streamlined and rightsized to a simpler model of Airbus A350-900s and the A330s, to suit scheduled operations.

The Airbus A380s will be used for the Hajj and Umrah business and deployed during peak and high demand periods.

The A350s, equipped with a First Class offering and the capacity to serve longer haul routes, is mobilized on the London and Japan routes, where there is higher demand for the premium cabin.

The quarter saw the arrival of an additional two of the airline’s six A350-900s, bringing the total of A350-900 aircraft to four in the first quarter.

The A330s (top) will be deployed on higher density regional routes across Asia Pacific, significantly improving the customer experience whilst also generating better revenue. The airline received the first two of the six A330-200s in the quarter.

The airline is undergoing an extensive process in selecting the next generation widebody fleet for future growth and replacement for ageing and end of lease aircraft. Several vendors have been engaged to provide information on new technologies that would best suit the Group’s network and expansion plans. This would also take into consideration fuel efficiency and passenger requirements.

Project Amal

MAB recently signed a three-year agreement with Andalusia Travel & Tours Sdn. Bhd., to transport Malaysian pilgrims to Madinah and Jeddah during the Umrah season beginning October this year until 2021. The agreement will see Malaysia Airlines providing up to 200 charter flights over the three years. The agreement will eventually be novated from Malaysia Airlines to Project Amal once the new airline meets all regulatory and licensing requirements in Malaysia and Saudi Arabia.

Operations

A higher OTP of 76% was registered for Q1 2018 as compared to the previous quarter, which was at 73%. Despite the significant improvement from the last quarter, the OTP registered was still lower than the overall target of 82% mainly due to consequential and technical delays and aircraft limitations. External factors, which included weather-related delays and air traffic congestion, also impacted the OTP. Disruptions were kept to a minimum, however, through stringent monitoring and activation of various contingency plans conducted by an internally set up OTP task force.

The total number of mishandled baggage showed a significant reduction of 44% as compared to Q4 2017. Mishandled baggage per 1,000 passengers also showed a positive reduction to 7.96 cases compared to 14.28 cases per 1,000 passengers in the previous quarter. The positive results recorded in terms of mishandled baggage are the direct result of various process improvement initiatives that the airline has undertaken. The quarter also saw the airline collaborate with Malaysia Airports Holdings Berhad (MAHB) in a joint effort to identify and rectify baggage discrepancies.

Fuel Efficiency

A total of 43 fuel initiatives, with target savings set at RM220 million, were registered in this quarter and will be tracked for 2018. In the current environment of escalating fuel prices, MAB will leverage on technology and digitization to minimise volatility effects. This quarter saw the introduction of the MH Fuel Messenger and MH Ops applications which are set to increase operational efficiency.

In all of the initiatives rolled out group-wide to drive operational excellence, safety continues to be the top priority.

Ethics and Governance

The Code of Practice and EU General Data Protection Regulation (EU GDPR) was introduced and rolled out across the group in this quarter. The initiatives under this code include training and readiness assessments for all frontline staff, ahead of the implementation of this legislation. To date, a total of 5500 employees across the group have been trained and equipped with knowledge on EU GDPR. The quarter also saw MAG collaborating with the Anti Trafficking in Persons & Anti-Smuggling of Migrants Council, in setting up a consultative body. This initiative will see employees across the group including ground and flight crew being trained in detecting, reporting and apprehending traffickers as well as providing support to victims of Human Trafficking. Training is expected to commence in the next quarter.

Investing in a talent pipeline and local succession planning

The quarter saw the introduction of a more streamlined and improved recruitment process for pilots, engineers, cabin crew and frontline staff with a total of 11 recruitment drives held between January and May 2018.

An employee referral scheme was unveiled in the quarter to encourage employees to refer deserving candidates to take up positions in key areas such as Flight Operations and Engineering. Apart from this, the Group also signed a Memorandum of Understanding (MOU) with Majlis Amanah Rakyat (MARA) to help boost the pipeline for pilots. The first group of cadets will be recruited from UniKL Malaysian Institute of Aviation Technology (MIAT) in Sepang.

Election and polling activities for the appointment of candidates for the MAG Works Council 2018 also took place in Q1 2018. The Works Council was established in 2016 to encourage positive collaboration and discussions between management and employees on important aspects covering work processes, benefits and the general wellbeing of all employees.

Alongside this, various development and leadership programmes continued throughout the quarter, to train and strengthen the internal talent pool. Some of these include the Leadership Talk Series and the General Managers Circle. The aim of these programmes is to inculcate a culture of collaboration and knowledge sharing, and enhancing the capabilities of senior-level leaders within the group to develop and nurture their employees.

Top Copyright Photo (all others by Malaysia Airlines): Malaysia Airlines Airbus A330-323 9M-MTF (msn 1281) DPS (Pascal Simon). Image: 942670.

Malaysia Airlines aircraft slide show:

From 60 Minutes Australia: What happened to flight MH 370?

What happened to MH370? On a special edition of 60 MINUTES, Tara Brown investigates what is now the world’s most confounding aviation disaster. What happened to the Boeing 777 airliner carrying 239 passengers and crew that vanished on March 8, 2014? For forty years, 60 Minutes have been telling Australians the world’s greatest stories. Tales that changed history, our nation and our lives. Reporters Liz Hayes, Allison Langdon, Tara Brown, Charles Wooley, Liam Bartlett and Tom Steinfort look past the headlines because there is always a bigger picture. Sundays are for 60 Minutes.

Malaysia Airlines ends scheduled Airbus A380 service to London Heathrow

Malaysia Airlines Airbus A380-841 9M-MNB (msn 081) LHR (SPA). Image: 935726.

Malaysia Airlines (Kuala Lumpur) has ended scheduled Airbus A380 service on its flagship route to London Heathrow. The last A380 service departed from LHR on March 5 as flight MH 3. LHR was the last A380 destination for the type for the airline.

The new Airbus A350-900 is now assigned to the route.

Malaysia will continue to use the type as a charter aircraft. The aircraft are being reconfigured to carry Hajj pilgrims to Saudi Arabia.

Copyright Photo: Malaysia Airlines Airbus A380-841 9M-MNB (msn 081) LHR (SPA). Image: 935726.

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Malaysia Airlines receives its second Airbus A350-900 in the special Negaruki livery

First flight of Malaysia's 2017 A350 "Negaraku" flag livery, delivered on December 22, 2017

Malaysia Airlines on December 23, 2017 received its second Airbus A350-900 aircraft with the special Negaraku livery in Kuala Lumpur.

Flight MH5025 departed Toulouse, France at 2.02 pm on December 22, 2017 and arrived at Kuala Lumpur International Airport at 9.45 am on December 23, 2017 (below).

The A350 bearing the registration number of 9M-MAC carries the Jalur Gemilang, representing the Malaysian flag.

The new A350 has 286 seats, with a three class configuration: four seats in First Class, 35 in Business and 247 in Economy Class.

Top Copyright Photo (all others by Malaysia Airlines): Malaysia Airlines Airbus A350-941 F-WZHE (9M-MAC) (msn 165) (Negaraku) TLS (Eurospot). Image: 940168.

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Malaysia Airlines takes delivery of its first Airbus A350-900

Malaysia Airlines' first Airbus A350-900

ALC issued this statement:

On November 29, 2017, Air Lease Corporation announced the delivery of its first Airbus A350 XWB aircraft (A350-941 9M-MAB, msn 159), on lease to Malaysia Airlines Berhad (MAB).  This aircraft is the first of six new A350-900s leased to the airline, with the additional five aircraft delivering through the third quarter of 2018 from ALC’s order book with Airbus.

Malaysia Airlines had a short mention and photos on social media:

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We had a little ceremony at our Hangar on November 30, 2017 to welcome the arrival of our new family member. Here are some photos from the event. We can’t wait for you to experience the A350 XWB for yourself!

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Airbus issued this statement:

Malaysia Airlines Berhad (MAB) has taken delivery of its first A350-900, leased from Air Lease Corporation, becoming the 17th airline to operate the world’s newest, most modern and efficient twin engine widebody airliner. The delivery was celebrated upon arrival at Kuala Lumpur International Airport.

ALC receives its first A350-900 out of an order for 29 A350 Family aircraft. Eventually Malaysia Airlines will operate six A350-900s, all leased from ALC.

Malaysia Airlines will initially deploy the aircraft on flights within Asia. From the first quarter of 2018, the A350 will fly on the airline’s premier long haul service from Kuala Lumpur to London.

Malaysia Airlines is the first carrier to offer a First Class cabin in the A350-900. The aircraft is configured in a three class cabin layout with a total of 286 seats. This comprises four in First Class, 35 in Business, featuring convertible seats to fully flat beds and 247 in Economy.

Malaysia Airlines already operates 24 Airbus aircraft including six A380, 15 A330-300 and three A330-200F on its regional routes and long haul services.

Top Copyright Photo (all others by Malaysia Airlines): Malaysia Airlines Airbus A350-941 F-WZFG (9M-MAB) (msn 159) TLS (Eurospot). Image: 939652.