KUALA LUMPUR, Dec 3 — Malaysia Airlines Bhd is benefiting from encouraging momentum in its first quarter and moves into the next phase of its restructuring exercise.
In its first quarterly update released today, the airline said among the achievements in the period was an improved on-time performance (OTP) since it became a new entity on Sept 1, 2015, with 89.8 per cent OTP on the day despite major disruptions caused by the recent haze.
Revenue per available seat kilometre for the quarter had improved year-on-year with the seat load factor also showing improvements, it said.
“We still have a long way to go but existing and new partners believe in our success and Malaysia Airlines has been set on a path towards reclaiming its position as one of the world’s leading airlines,” said Group Chief Executive Officer Christoph Mueller.
Demand out of China and North Asia showed a positive trajectory, boosted by increased inbound tourism demand, said the airline.
Capitalising on this, Malaysia Airlines has signed an agreement to operate 180 additional charter flights from China to Sabah.
The airline will be introducing more charter flights from selected key cities in China beyond its network, on top of the existing 180, to meet the increased appetite for inbound tourism.
Malaysia Airlines will also be opening seven new crew bases in Malaysia to improve connectivity and service quality on the domestic network.
The move involved a total of 18 Boeing 737-800s being relocated with locally employed pilots and cabin crew staff to permanent bases in Kota Kinabalu, Kuching, Miri, Labuan, Kota Baharu, Penang and Johor Baharu.
The airline has also applied to extend its rural contract agreement with the Ministry of Transport to further underline its commitment to rural air service in Sabah and Sarawak.
To ensure convenience and improved connectivity for passengers, the airline intends to reorganise its operations in Kuala Lumpur International Airport to concentrate operations in the main terminal.
The plan, expected to be in place by early next year, will mean quicker connections for ASEAN passengers between international and domestic flights.
Malaysia Airlines said its charter service had seen great success with the Umrah operations ferrying pilgrims to Madinah on its A380-800.
“This year saw an increase in capacity from 282 seats to 494 per flight on 45 direct flights from Kuala Lumpur to Madinah,” it added.
Contract renegotiation process will continue into 2016 as the new airline will only permit leasing agreements at competitive market rates.
Malaysia Airlines said most aircraft leasing contracts were still in the hands of Malaysian Airline System Bhd, which is in administration.
Significant cost saving initiatives has been identified across the new aviation group, with its more than 10 subsidiaries.
Malaysia Airlines said a focal point will be the renegotiation of uncompetitive contracts with suppliers.
The airline also is disposing of its non-core assets to better manage focus on its core business.
The quarter saw a new product initiative with the introduction of a premium business class lay flat seat for the A330-300 fleet.
The fully flat seat will be introduced from April 2016 on all A330-300 aircraft and the conversion will be completed by September 2016.
Other new and improved product offerings are in the pipeline, including a new catering concept in all classes and on-board Wi-Fi.
“We are working hard to change the structure of the airline fundamentally, from the inside out. This will involve looking at process, efficiency and tighter cost controls,” said Mueller.
Malaysia Airlines will add its code on flights of Emirates to Europe, Middle East, Africa and the Americas.
In return, Emirates will add its code on flights of Malaysia Airlines to domestic routes in Malaysia, Southeast Asia and selective cities across the Asia Pacific region. — Bernama
