Malaysia Airlines plans to launch twice weekly Kuala Lumpur-Brisbane service on 28-Mar-2010, complementing the carrier’s five times weekly Kuala Lumpur-Brisbane via Sydney service – see Route Changes Table for more information (Bernama, 24-Nov-2009). The carrier currently operates 46 weekly services to Australia, including services to Adelaide, Brisbane, Sydney, Melbourne and Perth.
Malaysia Airlines to launch Kuala Lumpur-Brisbane service
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Malaysia’s AirAsia: resuming domestic expansion and eyeing MASwings routes
AirAsia is resuming domestic expansion in the Malaysian market with a focus on connecting more dots within its network of 15 domestic destinations. The LCC is launching or resuming three domestic routes from Johor Bahru in late Apr-2017 and has lodged applications for four more new domestic point-to-point routes.
By the end of 2017 AirAsia is also aiming to take over a few domestic routes within east Malaysia that are now exclusively operated by the Malaysia Airlines Group turboprop subsidiary MASwings. The routes are part of the Malaysian government’s subsidised rural air services (RAS) programme, but are potentially big enough to support larger aircraft on a commercial basis. The Malaysia Airlines Group is preparing to reduce its ATR 72 turboprop fleet further following anticipated changes to the RAS programme, which is coming up for renewal this year.
AirAsia is the leading domestic airline in Malaysia and has 50% of its total seat capacity allocated to the domestic market. However, AirAsia’s domestic capacity has been flat the last three years as it has focused entirely on international expansion.
Malaysia Airlines: traffic growth resumes as loads improve; outlook brightens, but still challenging
Malaysia Airlines is again growing. Passenger numbers were up 8% in 2H2016, marking the first year-over-year gains since 1Q2014. Passenger numbers are expected to increase by another 10% in 2017, driven by load factor improvements and a resumption of capacity expansion.
The government owned airline, which completed a drastic network restructuring in early 2016, is still unprofitable. However, Malaysia Airlines was profitable in Dec-2016 and expects to be consistently profitable from 4Q2017, despite rising oil prices and intensifying competition.
The outlook is significantly brighter than a year ago, but is still relatively cloudy given the highly competitive landscape in Malaysia. Malaysia Airlines continues to work on cutting costs – a prudent move given the depreciation of the Malaysian Ringgit – and to pursue a relatively conservative growth plan. It expects to maintain its fleet at the current level of 75 passenger aircraft over the next two years, but adjust the mix to include a larger widebody component.