MASWings stated it plans to undergo a major fleet renewal programme in which it will invest USD20 million in acquiring new aircraft (Bernama, 15-Sep-09). The carrier plans to take delivery of five new ATR aircraft by Apr-2010 to phase out its Fokker 50 aircraft, and plans to order another Twin Otter aircraft. MASWing’s fleet currently consists of 15 aircraft, including five ATR 72-500s, six Fokker 50s and four Twin Otters.
MASWings planning to undergo a major fleet renewal programme
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Malaysia Airlines update Part 3: New widebody order designed to support long term growth
Malaysia Airlines is considering placing an order for 25 A330neos or 787s in 2017. The order includes 15 replacements for its existing A330ceo fleet and also 10 growth aircraft – which will be used to pursue expansion opportunities in North Asia and potentially support a resumption of services to continental Europe.
Malaysia Airlines is also considering adjustments to its narrowbody fleet plan. A slight reduction in the size of its 737-800 fleet is likely as utilisation improvements have meant that the airline needs fewer aircraft. A portion of the remaining fleet will be reconfigured, with some 737s receiving new business class seats and some 737s potentially becoming all-economy aircraft.
The group is also assessing the possible addition of 737s at the regional subsidiary MASwings to support expansion on international routes from east Malaysia. MASwings currently only operates turboprops.
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%.