MAS faces ASEAN liberalisation challenges

Loss-making Malaysia Airlines (MAS) can overcome its financial turbulence and head into clearer skies when the Asean (the Association of Southeast Asian Nations) air services is liberalised by 2015 if it adopts right strategies, say industry analysts.


MAS faces ASEAN liberalisation challenges


Loss-making Malaysia Airlines (MAS) can overcome its financial
turbulence and head into clearer skies when the Asean (the Association of Southeast Asian Nations) air services is liberalised by 2015 if it adopts right strategies, say industry analysts.

The Open Skies policy which will dramatically change the landscape of the aviation sector in Asean and MAS must adopt the right strategies if it is to flourish, let alone survive according to
OSK Research aviation analyst, Ahmad Maghfur Usman. “It should adopt the right pricing strategy and target the premium market segment/rates and work on that,” he told Bernama news agency.

On a positive note, he said the first quarter results of Malaysia Airlines showed that it had managed to boost yields year-on-year by 12.5 per cent to 27.1 sen (US 8.6 cents) per Revenue Passenger Kilometre (RPK) after trimming its unprofitable routes to
focus on high-yielding ones.

OSK Research in its quarterly review of the national carrier’s results said it was wise to focus on boosting yields, hence higher ticket prices instead of competing head on with low cost carrier AirAsia for both domestic and international passengers.

Ahmad said Malaysia Airlines could stand a better chance to boost yield and its competitiveness with the fuel efficient Airbus A380 and other new aircraft in its fleet. Malaysia Airlines’ first A380 had its inaugural flight on 1 July on the Kuala Lumpur-London
route.