MAS adjusts short-haul strategy again as plans for separate premium brand are dropped

Malaysia Airlines (MAS) has dropped plans to establish a new short-haul premium brand, which was slated to take over the carrier's regional routes and had been a major component of its new business plan. The ongoing restructuring at MAS, which is aimed at restoring profitability at the flag carrier by next year, will now focus primarily on the long-haul operation. By and large it will be business as usual for the flag carrier's short-haul operation although it will still be separated out as a new division. As part of this separation, MAS will stop entirely the use of widebodies on short-haul routes, which is a common practice in Asia where regional routes are often thick enough to support large aircraft that otherwise sit idle between long-haul flights.

The reversal of last year's decision to establish a new company and brand for the full-service short-haul sector, under what MAS had called Project Sapphire, raises some questions about the long-term viability of the group's short-haul operation. But rapid renewal of the MAS narrowbody fleet, network adjustments and anticipated coordination with AirAsia could still lead to the financial improvements required for the new short-haul division to become profitable.