Malaysia Airlines to join oneworld alliance
Malaysia Airlines (MAS) announced plans at the IATA AGM in Singapore today to join the oneworld alliance. The move marks the achievement of a key goal of the airline's multi-year restructuring plan.
- Malaysia Airlines (MAS) has announced its plans to join the oneworld alliance, marking a significant achievement in its restructuring plan.
- MAS's entry into oneworld will provide a boost to the alliance's presence in the high-growth Asian market.
- Oneworld's share of global airline capacity has declined to 10.2%, while Star Alliance leads with 23.4% and SkyTeam with 14%.
- MAS accounts for approximately 0.6% of global seats, making it a valuable addition to oneworld.
- Other oneworld partners in the Asian region include Cathay Pacific, Qantas, and Japan Airlines.
- MAS's entry into oneworld will help the airline defend and expand its share of the premium travel market and differentiate itself from low-cost competitors in Malaysia.
oneworld's share of global airline capacity has declined in recent years, falling a further percentage point to 10.2% this month (in terms of seats per week). Star leads the alliances with a 23.4% share of global seats, followed by SkyTeam with 14%. Unaligned carriers account for 28.4% and LCCs 24% of global seating capacity.
MAS, which has its hub at Kuala Lumpur International Airport, accounts for roughly 0.6% of global seats, which would be a handy addition for oneworld in the high growth Asian market. Future MAS partners in the oneworld alliance in the region include Cathay Pacific, Qantas (who will sponsor MAS' entry) and Japan Airlines. Kingfisher is joining oneworld in Feb-2012 and Air Berlin is expected to join in Apr-2012.
Global alliances key capacity data: Jun-2010 vs Jun-2011*
| Alliance | Jun-10 | Jun-11 | % Change | Jun-10 | Jun-11 | Variance | |
|---|---|---|---|---|---|---|---|
| Oneworld | Flights per Week | 58,872 | 56,774 | -3.6% | 10.0% | 9.3% | -0.71% |
| Seats per Week | 8,200,174 | 7,875,061 | -4.0% | 11.2% | 10.2% | -1.00% | |
| ASKs per Week | 17,840,295,090 | 17,958,637,533 | 0.7% | 14.4% | 13.6% | -0.82% | |
| SkyTeam Alliance | Flights per Week | 85,114 | 85,031 | -0.1% | 14.5% | 14.0% | -0.54% |
| Seats per Week | 10,583,440 | 10,773,939 | 1.8% | 14.5% | 14.0% | -0.50% | |
| ASKs per Week | 20,029,362,351 | 20,922,468,509 | 4.5% | 16.1% | 15.8% | -0.35% | |
| Star Alliance | Flights per Week | 148,863 | 148,632 | -0.2% | 25.4% | 24.4% | -0.96% |
| Seats per Week | 17,757,897 | 17,993,642 | 1.3% | 24.3% | 23.4% | -0.94% | |
| ASKs per Week | 32,463,001,856 | 33,832,210,717 | 4.2% | 26.2% | 25.5% | -0.63% | |
| Low Cost Carriers | Flights per Week | 113,973 | 124,774 | 9.5% | 19.4% | 20.5% | 1.07% |
| Seats per Week | 16,843,825 | 18,490,503 | 9.8% | 23.1% | 24.0% | 0.95% | |
| ASKs per Week | 20,445,050,588 | 22,862,472,209 | 11.8% | 16.5% | 17.3% | 0.78% | |
| Un-Aligned Carriers | Flights per Week | 179,533 | 193,170 | 7.6% | 30.6% | 31.8% | 1.13% |
| Seats per Week | 19,664,355 | 21,872,273 | 11.2% | 26.9% | 28.4% | 1.48% | |
| ASKs per Week | 33,285,189,237 | 36,894,429,937 | 10.8% | 26.8% | 27.9% | 1.02% | |
| Grand Total | |||||||
| Flights per Week | 586,355 | 608,381 | 3.8% | ||||
| Seats per Week | 73,049,691 | 77,005,418 | 5.4% | ||||
| ASKs per Week | 124,062,899,122 | 132,470,218,905 | 6.8% | ||||
Malaysia Airlines' shares fell a further 2% on Friday and the stock is trading near decade lows. Its entry into oneworld should help the carrier defend and grow its share of the premium travel market by tapping into the network and loyalty programmes of its partner airlines. It should also help MAS differentiate itself in the local Malaysian market where low cost competition from AirAsia, AirAsia X and others has become intense.
Selected Asia Pacific daily share price movements (% change): 3-Jun-2011
