KUALA LUMPUR: Malaysia Airlines will only fly to 19 domestic destinations, including all state capitals with airports except Ipoh, under a scheme to share local flights with AirAsia.
Besides these 19 domestic destinations, AirAsia will also service 96 other local routes, which are now termed as non-trunk domestic routes.
These flights are expected to commence on Aug 1.
MAS, however, is not allowed to sell its tickets at a discount and the price must be not less than the “full economy fare.”
The Government said the definition of a domestic
trunk route was made after considering the joint report submitted by the two airlines.
“The definition of trunk routes is based on two criteria – international connectivity and business traffic,” said a statement issued by the Prime Minister’s Office late yesterday.
The statement said that the KLIA, Kuching and Kota Kinabalu airports would be the main hubs for the trunk routes.
The Government, as part of its rationalisation of the domestic air services sector, had given the two airlines until yesterday to come to an agreement on the definition.
On March 16, the Government announced that both MAS and AirAsia would be allowed to fly major domestic routes.
The Prime MinisterÂ’s Department reiterated yesterday that MAS would provide the premium service and the budget airline, the low-cost domestic trunk services.
The Government also decided that both companies would be given the flexibility to decide on the frequency of flights, capacity distribution, type of aircraft and airfare under the supervision of the Transport Ministry.
“MAS must restructure its domestic operations by then and AirAsia must have built up capability to operate all domestic routes, including ensuring connectivity where MAS does not fly to.
“The Government will offer a fitting compensation for the domestic business unbundling agreement between MAS and Penerbangan Malaysia Berhad,” the statement said, adding that profit and loss for MAS’ domestic operations is now its own responsibility.
Stating that neither MAS nor AirAsia would be given a subsidy to operate their domestic operations, the Government would, however, pay the low-cost carrier to operate social routes like the rural air services in Sabah and Sarawak.
The Prime MinisterÂ’s Office also revealed that the two airlines were negotiating an agreement for AirAsiaÂ’s entire fleet of aircraft to be maintained by the MAS Engineering Unit.
At present, AirAsiaÂ’s planes are being serviced in Singapore.
“The Government hopes that this rationalisation process will mean greater cooperation between MAS and AirAsia not only on the domestic sector but also on the regional and international levels.”
MAS managing director Idris Jala said the national carrier analysed all its domestic routes and identified the 19 routes as key to ensuring its future success.
“We are confident that we will be able to work closely with AirAsia to ensure that connectivity and interlinking issues are addressed in a timely manner and that international passenger traffic in and out of Kuala Lumpur will not be affected,” he said.
AirAsia group chief executive officer Datuk Tony Fernandes said the long-awaited decision would finally enable the two airlines to set their differences aside and move forward to bring their services closer to the people. - The Star, Malaysia, 28/03/06
Summary
MAS: Reduced to 19 destination flights, from 40 planes to 21 planes
Air Asia: 19 rts sharing with MAS but as Low Cost Carrier, remaining 96 rts taken over by Air Asia
Air Asia says this rationalisation will make Malaysia more able to complete with Singapore
My assesment on this is that though there will be compeition, but tourist might be vary of going Malaysia because of the recent negative publicity on their police force. Another issue is that bus transfer sv between LCC Terminal and KLIA Main Terminal is neither free nor running around the clock. The attitude of not working around the clock is still there
As for the restructured MAS, it indeed can pose a threat to Singapore with regards to transit passengers
MAS move dismays Johor
JOHOR BARU: Johor is "shocked and dismayed" at news that the Senai Airport might be dropped as a main hub for Malaysia Airlines under its new route rationalisation plan.
Menteri Besar Datuk Abdul Ghani Othman said the State Government would lobby hard to reinstate Johor Baru as an important destination for MAS.
"The Federal Government is committed to making south Johor a regional logistics hub and reposition Johor Baru as an international destination.
"MAS cannot pull out now. It will only scuttle our plans," he told the New Straits Times.
Ghani said Johor would push hard to convince policy-makers in Putrajaya to include Johor Baru as one of MASÂ’ international and business hubs.
It was announced on Tuesday that the KLIA, Kuching and Kota Kinabalu international airports would be the only main MAS hubs for trunk routes.
Under the domestic route rationalisation exercise, MAS will operate 19 trunk routes, while AirAsia has been entrusted with 96 other low-cost operations.
If the plan goes through, MAS will stop flying to Johor Baru, with all services being taken over by AirAsia.
Ghani said there were several compelling reasons why the MAS service to Johor Baru should not only be reinstated but improved:
• The Senai Airport handled 325,000 passengers who flew on MAS last year, compared to 100,000 on AirAsia. Most company executives and businessmen preferred to fly MAS.
• Unlike AirAsia, MAS is permitted to run a bus shuttle service from Singapore to Senai Airport, a major attraction to Singaporeans because it is cheaper to fly from Senai.
• MAS now carries perishable goods from Kota Kinabalu and Kuching for the Singapore market, which AirAsia does not.
• AirAsia cargo rates are three times higher than those of MAS, a major put-off for exporters.
• The passenger baggage weight limit for MAS is 20kg, compared with 15kg for AirAsia.
• AirAsia flights are frequently delayed or rescheduled because of technical problems and limited aircraft.
Ghani said another major consideration was that Senai Airport, now privately owned and operated by Senai Airport Terminal Services Sdn Bhd (SATS), is being developed to become a key passenger, air cargo and logistics hub in Asia.
SATS is spending RM1 billion over a 10-year period to realise this goal.
MAS now operates daily flights from Senai to KLIA (five), Kuching (three) and Kota Kinabalu (one).
AirAsia has 11 flights in and out of Senai daily. - NST, Malaysia, Mar 30 2005
Errr...
Many passengers are unhappy, they dun want Air Asia