Wednesday, October 19, 2011

MALAYSIA AIRLINES TODAY - 4

Malaysia Airlines chief executive officer Ahmad Jauhari Yahya said in a statement yesterday that their Low cost carrier Firefly will cease all jet operations by 04 December 2011.
What a pity! Malaysia Airlines has wasted so much effort and money in promoting low cost travel for the benefit of the public. Friends who have flown Firefly commented that they offered better service than Air Asia, both in the air and on the ground. They operate from the main terminals in KLIA and KKIA with the support of areobridges and their fare is almost the same as Air Asia. With less than a year of jet operations, all the services between East and West Malaysia will be terminated, just like that.  

From 04 December 2011 onwards, Air Asia will be the only low cost carrier monopolizing Malaysia domestic routes. Many believed that they will increase their fare for more profit! Why is this happening? Why does Firefly have to pull out when they are doing well? Majority of the people believed that Malaysia Airlines gave up their low cost carrier because of pressure from a certain group who has strong political support. The "talk" in town is that a few greedy people are all out to get rid of Firefly and let Air Asia enjoy all the revenue.   
Air Asia

So what will happen to Firefly now?  According to the Malaysia Airlines Ceo, the national carrier would  absorb all their jet fleet consisting of six B737-800 and two B737-400.
Under the new network rationalisation programme, Firefly's ATR 72-500 aircrafts will only concentrate on serving short-haul turboprop operations, while Malaysia Airlines focus on enhancing its premium full-service offering.

The "takeover of the Firefly's jets" will definitely be a burden to Malaysia Airlines. The poor new Ceo has to make some business realignment exercise and address the network and fleet restructuring plans.

Malaysia Airlines already has an excessive fleet of B737-400 and 800. Where can they deploy the Firefly's jets? If I was the Ceo, I would sell them and make a profit so I could give some "bonus" to all the staff. 
Ahmad Jauhari Yahya has also announced that Malaysia Airlines would remain committed to East Malaysia and continue to operate all services to Kota Kinabalu and Kuching in Sabah and Sarawak.

The only losers in the Malaysia Airlines and Air Asia swap share deal are the people especially those in Sabah and Sarawak. There is no other choice for those budget travellers but to fly Air Asia. To date, the Government is still mum on the share deal. What is happening is anybody's guess!

May God help Malaysia Airlines !

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