Malaysia Airlines (MAS) Operations Director, Captain Azharuddin Osman, stated there could be a possible shortage of pilots in Malaysia and Asia in general, as airlines take delivery of new aircraft (The Star, 15-Nov-2010). MAS, Firefly and Air Asia are expected to take delivery of up to 24 aircraft between now and 2011.
Malaysia Airlines forecasts possible pilot shortage in Asia
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Malaysia Airlines, Firefly, MASwings: new domestic strategy – flat capacity, more aggressive pricing
The Malaysia Airlines Group plans to maintain current capacity levels in the Malaysian domestic market but is aiming to recapture market share through load factor improvements. The group’s domestic market share has slipped from 45% to less than 37% since 2013 as its domestic passenger traffic has dropped by more than 10%, due to capacity cuts and load factor declines.
Malaysia’s other two domestic players, AirAsia and Lion JV Malindo Air, have steadily grown their market share since launching in 2001 and 2013 respectively. AirAsia currently has a leading 45% share of domestic capacity in Malaysia – and an even higher share of traffic given its higher average load factors – while Malindo has approximately 14% and the Malaysia Airlines Group 41%.
The Malaysia Airlines Group is introducing a new, more aggressive pricing strategy in both the domestic and international markets in an attempt to boost load factors and regain market share. Malaysia Airlines’ domestic load factor was only 65.6%% in 2015 and slipped to 64.7% in 1Q2016. Firefly’s load factor was also below 70% in 2015, while MASwing’s load factor was below 60%.
Malaysia AirAsia: challenges emerge to recent good results but costs, brand awareness are strengths
Short haul LCC group AirAsia faces intensifying competition in its original home market of Malaysia. Malaysia AirAsia (MAA) is no stranger to fierce competition and has the cost structure to fight back, but the price might be a dilution of recent yield and load factor improvements.
MAA has benefitted over the last year from the restructuring of Malaysia Airlines and an improvement in overall market conditions. However, the new Malaysia Airlines is starting to emerge as a tougher competitor, with a new, more aggressive pricing strategy. Meanwhile Lion Group’s Malaysian JV Malindo Air is again accelerating expansion, targeting several of AirAsia’s most lucrative routes.
Over the past two months CAPA has published a comprehensive series of reports analysing the new strategy of the Malaysia Airlines Group, Malindo and AirAsia X. In this report CAPA examines the outlook for Malaysia’s largest airline, MAA.