Malaysia Airlines

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Malaysia Airlines (MAS)
Penerbangan Malaysia
IATA
MH
ICAO
MAS
Callsign
MALAYSIAN
Founded 1947 (as Malayan Airways)
Hubs Kuala Lumpur International Airport
Focus cities Kota Kinabalu International Airport
Frequent flyer program Enrich by Malaysia Airlines
Grads
Member lounge Golden Lounge
Subsidiaries
Fleet size 111.[1] (+61 orders)
Destinations 88
Parent company Penerbangan Malaysia Berhad
Company slogan Going Beyond Expectations,
MH is Malaysian Hospitality
Headquarters Kuala Lumpur, Malaysia
Key people Idris Jala (Managing Director & CEO)
Website: www.malaysiaairlines.com

Malaysia Airlines (Malay:Syarikat Penerbangan Malaysia; MYX: 3786) is the flag carrier of Malaysia. Malaysia Airlines operates flights from its home base, Kuala Lumpur International Airport, and its secondary hub in Kota Kinabalu. Despite a financial restructuring exercise in 2006, Malaysia Airlines maintains a strong presence in Southeast Asia, East Asia, South Asia, Middle East and on the Kangaroo Route between Europe and Australasia. Malaysia Airlines also operates transatlantic flights from Kuala Lumpur to Newark, via Stockholm, and transpacific flights from Kuala Lumpur to Los Angeles, via Taipei. In 1997, the airline flew the world's longest non-commercial, non-stop flight from Boeing Field in Seattle to Kuala Lumpur, flying eastward passing the European and African continents and breaking the Great Circle Distance Without Landing record for an airliner on a Boeing 777-200ER; this record is now held by the Boeing 777-200LR.[2]

Malaysia Airlines non-aeronautical revenue sources include maintenance, repair and overhaul (MRO)[3] and aircraft handling. Malaysia Airlines has two airline subsidiaries: Firefly and MASWings. Firefly operates scheduled flights from its home base Penang International Airport which focus on tertiary cities, while MASWings focuses on inter-Borneo flights. Malaysia Airlines has a freighter fleet operated by MASKargo, which manages freighter flights and aircraft cargo-hold capacity for all Malaysia Airlines' passenger flights. MASCharter is another subsidiary of Malaysia Airlines, operating charter flights using Malaysia Airlines' passenger jets. After recovering from past losses, Malaysia Airlines is keen on merger and acquisition (M&A) activities: particularly airlines in the Asia Pacific region.[4]

Since its inception in 1963, after Malayan Airways was separated into two parts, Malaysia Airlines has built up a strong brand name in the aviation industry for service and safety [5], coupled with numerous awards from international bodies such as Skytrax.[6]. Malaysia Airlines is accredited by International Air Transport Association with IOSA (IATA Operations Safety Audit) for its operational safety practices. [7]

It is one of only six airlines to be given a 5-star status airline by Skytrax (the other 5 are Asiana Airlines from South Korea, Cathay Pacific from Hong Kong, Qatar Airways from Qatar, Singapore Airlines from Singapore and Kingfisher Airlines from India).

Contents

[edit] History

[edit] Beginnings

A Airspeed Consul, the first aircraft type operated by Malayan Airways
A Airspeed Consul, the first aircraft type operated by Malayan Airways

On 12 October 1937, the Liverpool-based Singaporean Steamshipping Company and Imperial Airways proposed to the colonial governments in Penang and Singapore a scheduled flight service between the two cities. Malayan Airways Limited (MAL) was founded, but the first paying passengers could be welcomed on board a plane only 10 years later, on 2 February 1947. The airline's first flight was a charter flight from the British Straits Settlement of Singapore to Kuala Lumpur, on 2 April 1947, using an Airspeed Consul twin-engined aircraft.[8] This inaugural flight, with only five passengers, was bound for Kuala Lumpur instead of Penang. Weekly scheduled flights quickly followed from Singapore to Kuala Lumpur, Ipoh and Penang from 1 May 1947 with the same aircraft type.[9] The airline continued to expand during the rest of the 1940s and 1950's, as other British Commonwealth airlines (such as BOAC and Qantas Empire Airways) provided technical assistance, as well as assistance in joining IATA. By 1955, Malayan Airways' fleet had grown to include a large number of Douglas DC-3s, and went public in 1957. Other aircraft operated in the first two decades included the Douglas DC-4 Skymaster, the Vickers Viscount, the Lockheed L-1049 Super Constellation, the Bristol Britannia, the De Havilland Comet 4 and the Fokker F27. Over the next few years, the airline expanded rapidly, boosted by post-war air travel demand when flying became more than a privilege for the rich and famous. By 12 April 1960, the airline was operating Douglas DC-3s, Super Constellations and Viscounts on new routes from Singapore to Hong Kong, and from Kuala Lumpur to Bangkok via Penang. Flights were also introduced from Singapore to cities in the Borneo Territories, including Brunei, Jesselton (now Kota Kinabalu), Kuching, Sandakan and Sibu.

In 1957, the airline became a state-run stock corporation. With the delivery of an 84-seat Bristol Britannia in 1960, the airline launched its first long-haul international flight, to Hong Kong. When Malaya, Singapore, Sabah and Sarawak formed the Federation of Malaysia in 1963, the airline's name was changed, from "Malayan Airways" to "Malaysian Airlines" (though still abbreviated to MAS). MAS also took over Borneo Airways. In 1966, following Singapore's separation from the federation, the airline's name was changed again, to Malaysia-Singapore Airlines (MSA). The next year saw a rapid expansion in the airline's fleet and routes, including the purchase of MSA's first Boeing aircraft: the Boeing 707s, as well as completion of a new high-rise headquarters in Singapore. Boeing 737s were added to the fleet soon afterward.

[edit] Incorporation

Malayan Airways DC-3
Malayan Airways DC-3

The differing needs of the two shareholders, however, led to the break-up of the airline just 6 years later. The Singapore government preferred to develop the airline's international routes, while the Malaysian government had no choice but to develop the domestic network first before going regional and eventually international. MSA ceased operations in 1972, with its assets split between two new airlines; Malaysia Airlines Berhad (now Malaysia Airlines),[10] and Singapore Airlines.

With the Singapore government determined to develop Singapore Airlines' international routes, it took the entire fleet of seven Boeing 707s and five Boeing 737s, which would allow it to continue servicing its regional and long-haul international routes. Since most of MSA's international routes were flown out of Singapore, the majority of international routes were in the hands of Singapore Airlines. In addition, MSA's headquarters, which was located in Singapore, became the headquarters of Singapore Airlines.

The initials MSA were well regarded as an airline icon, and both carriers tried to use them. Malaysian went for MAS by just transposing the last two letters and choosing the name Malaysian Airline System, while Singapore originally proposed the name Mercury Singapore Airlines to keep the MSA initials, but changed its mind and went for SIA instead. Acronyms for airline names later became less fashionable, and both carriers then moved on to their descriptive names.

[edit] Expansion

Malaysian Airline System took all domestic routes within Malaysia and international routes out of that country, as well as the remaining fleet of Fokker F27's. It began flights on 1 October 1972. Soon after that, Malaysia Airline System rapidly expanded its services, including introducing long-haul flights from Kuala Lumpur to London.

In the same year, MAS operated flights to more than 34 regional destinations and six international services. In 1976, after receiving its DC-10-30 aircraft, MAS scheduled flights reached Europe, with initial services from Kuala Lumpur to Amsterdam, Paris and Frankfurt.

An economic boom in Malaysia during the 1980s helped spur growth at Malaysia Airlines. By the end of the decade, MAS was flying to 47 overseas destinations, including eight European destinations, seven Oceania destinations, and the United States destinations of Los Angeles and Honolulu. In 1993, Malaysia Airlines reached South America when the airline received its B747 aircraft. When Malaysia Airlines introduced its service from Kuala Lumpur to South America, MAS became the first and only airline in Southeast Asia to serve South America via its flights to Buenos Aires, Argentina. Services extended to Central America when Malaysia Airlines began flying to Mexico City in the 1980s, which route was terminated in the 1990s.

[edit] First Unprofitability

Prior to the Asian Financial Crisis in 1997, the airline suffered losses of as much as RM 260 million after earning a record-breaking RM319 million profit in the financial year 1996/1997. The airline then introduced measures to bring its P&L back into the black. For the financial year 1999/2000, the airline cut its losses from RM700 million in the year 1998/1999 to RM259 million. However, the airline plunged into further losses in the following year, amounting to RM417 million in FY2000/2001 and RM836 million in FY2001/2002. With these losses, the airline cut many unprofitable routes, such as Brussels, Darwin, Honolulu, Madrid, Munich and Vancouver.

The airline recovered from its losses in the year 2002/2003. It achieved its then-highest profit in the year 2003/2004, totaling RM461 million.

[edit] Second unprofitability

Regional services flown by Fokker F50s, such as this one, were once operated at a substantial loss.
Regional services flown by Fokker F50s, such as this one, were once operated at a substantial loss.

In the year 2005, Malaysia Airlines reported a loss of RM1.3 billion. Revenue for the financial period was up by 10.3% or RM826.9 million, compared to the same period for 2004, driven by a 10.2% growth in passenger traffic. International passenger revenue increased by RM457.6 million or 8.4%, to RM5.9 billion, while cargo revenue decreased by RM64.1 million or 4.2%, to RM1.5 billion. Costs increased by 28.8% or RM2.3 billion, amounting to a total of RM 10.3 billion, primarily due to escalating fuel prices. Other cost increases included staff costs, handling and landing fees, aircraft maintenance and overhaul charges, Widespread Assets Unbundling (WAU) charges and leases.[11].

The Government of Malaysia appointed Idris Jala as the new CEO on 1 December 2005, to execute changes in operations and corporate culture. Several weaknesses in airline operations were identified as the causes of the RM1.3 billion loss. These included esclating fuel prices, increased maintenance and repair costs, staff costs, low yield per available seat kilometer ("ASK") via poor yield management and an inefficient route network. Under the leadership of Idris Jala, Malaysia Airlines launched its Business Turnaround Plan in 2006, developed using the Malaysian Government's Government-linked company (GLC) Transformation Manual as a guide.

The most substantial factor in the losses was fuel costs. For the period, the total fuel cost was RM3.5 billion, representing a 40.4% increase compared to the same period in 2004. Total fuel cost increases comprised RM977.8 million due to higher fuel prices and another RM157.6[11] million due to additional consumption. In the third quarter, fuel costs were RM1.26 billion, compared to the RM1.01 billion in the corresponding period in 2004, resulting in a 24.6% increase or RM249.3 million.[11]

Another factor for the losses was high operating costs. MAS substantially lagged its peers on yield. Some of this gap is due to differences in traffic mix,[12](less business traffic to and from Malaysia than to and from Singapore), but much of it was due to weaknesses in pricing and revenue management, sales and distribution, brand presence in foreign markets, and alliance base. Malaysia Airlines has one of the lowest labor costs per ASK at USD0.41, compared to other airlines such as Cathay Pacific and Singapore Airlines at USD0.59 and USD0.60[12] respectively. However, despite its low labor cost, the ratio of ASK revenue (millions) to this cost was, at 2.8, much lower than Singapore Airlines, where the ratio is 5.0, and slightly higher than Thai International Airways[12]

There are other factors listed in the Business Turnaround Plan of Malaysia Airlines, all leading to the net loss of RM1.3 billion in the year 2005.

[edit] Recovery from unprofitability

Under the various initiatives, launched together with the Business Turnaround Plan, Malaysia Airlines turned losses into profits between FY2006 and FY2007. When the Business Turnaround Plan came to an end, the airline posted a record profit of 851 million Ringgit (265 million dollars) in 2007, ending a series of losses since 2005. The result exceeded the target of RM300 Million by 184%.[13].

Among the initiatives that turned losses back into profit, route rationalizing was one of the major contributors. Malaysia Airlines pared its domestic routes from 114 to 22, and also canceled virtually all unprofitable international routes (such as Kuala Lumpur-Manchester, that required a 140% load factor to break even). Apart from that, Malaysia Airlines also rescheduled all of its flight timings and changed its operations model from point to point services to hub and spoke services.

Additionally, the airline started Project Omega and Project Alpha to improve the company's network and revenue management. Emphasis has been placed on six areas: pricing, revenue management, network scheduling, opening storefronts, low season strategy and distribution management.

Malaysia Airlines has been involved in discussions for new aircraft purchases, using its cash surplus of 5.3 billion Ringgit to eventually purchase 55 narrow-body aircraft and 55 wide-body aircraft.[14].

[edit] Everyday Low Fares

Malaysia Airlines took an unprecedented move with its “Everyday Low Fares” (ELF) programme on May 6, 2008 which offers 1.3 million RM 0 for all domestic routes operated by Malaysia Airlines and Firefly.[15] According to the managing director of Malaysia Airlines, Datuk Seri Idris Jala the Everyday Low Fares programme will create new demand for people who do not fly with Malaysia Airlines.[16]

The Everyday Low Fares programme offers a maximum of 30% of the total seats on every flight which are unsold due to the average load factor of 70% on each flights. Thus, Malaysia Airlines is generating income for the airline through fuel surcharge, administrative fee and airport tax.[17] By May 14, 2008, Malaysia Airlines has sold more than 150,000 seats since the launch of the programme and 50,000 tickets has been sold in the first two days.[18]. Malaysia Airlines is also extending the programme to all Asean routes operated by Malaysia Airlines.[19]

However, the Everyday Low Fares programme launched by Malaysia Airlines has been strongly opposed by Asia's largest low cost carrier, AirAsia which claims that Malaysia Airlines is competing directly with AirAsia's business model but at the same time not allowing the budget carrier to compete against the national airline.[20]

[edit] Corporate information

Malaysia Airlines is listed on the stock exchange of Bursa Malaysia under the name Malaysian Airline System Berhad (MYX: 3786). The airline suffered high losses over the years due to poor management and fuel price increases. As a result of financial restructuring (Widespread Asset Unbundling) [11] in 2002, led by BinaFikir, Penerbangan Malaysia Berhad became its parent company, incorporated in 2002, in exchange for assuming the airline's long-term liabilities. On the operational side, the Government of Malaysia appointed Idris Jala as the new CEO on 1 December 2005, to execute changes in operations and corporate culture. Under his leadership, Malaysia Airlines unveiled its Business Turnaround Plan (BTP) in February, 2006, which highlighted low yield, an inefficient network and low productivity (overstaffing). The airline headquarters building in downtown Kuala Lumpur was sold. The new corporate headquarters is now at Sultan Abdul Aziz Shah Airport in Subang, Petaling.

Following the Widespread Asset Unbundling (WAU) restructuring of Malaysia Airlines, Malaysian Government investment arm and holding company, Khazanah Nasional's subsidiary, Penerbangan Malaysia Berhad[21] is the majority shareholder with a 52.0% stake.[21] After Penerbangan Malaysia Berhad, the second-largest shareholder is Khazanah Nasional, which holds 17.33% of the shares. Minority shareholders include Employees Provident Fund Board (10.72%), Amanah Raya Nominees (Tempatan) Sdn Bhd (5.69%), State Financial Secretary Sarawak (2.71%), foreign shareholders (5.13%)[21] and Warisan Harta Sabah (2.4%). It has 19,546 employees (as of March, 2007).[22]. Malaysia Government has been reporting that the government's holding company, Khazanah Nasional is keen on selling shares of Malaysia Airlines to remain globally competitive in an industry which is fast-consolidating.[4]

[edit] Subsidiaries

Malaysia Airlines has diversified in to related industries and sectors, including aircraft ground handling, aircraft leasing, aviation engineering, air catering, and tour operator operations. It has also restructured itself by spinning-off operational units as fully-owned subsidiaries, to maintain its core business as a passenger airline. Malaysia Airlines has over 20 subsidiaries, with 13 of them fully owned by Malaysia Airlines.[23]

Some of the subsidiaries include:

Company Type Principal activities Incorporated in Group's Equity Shareholding
Malaysia Airlines Cargo Sdn. Bhd Subsidiary Cargo Malaysia 100%
MASWings Sdn. Bhd. Subsidiary Airline Malaysia 100%
Firefly Sdn. Bhd. Subsidiary Airline Malaysia 100%
MAS Aerotechnologies Sdn Bhd Subsidiary MRO Malaysia 100%
MAS Golden Holidays Sdn Bhd Subsidiary Tour operator Malaysia 100%
Malaysian Aerospace Engineering Sdn Bhd Subsidiary Engineering Malaysia 100%
MAS Academy Sdn Bhd Subsidiary Flight school Malaysia 100%
Abacus Distribution Systems (Malaysia) Sdn Bhd Subsidiary Computer reservation system Malaysia 80%
Taj Madras Air Catering Limited Associate Catering India 20%
MAS Catering (Sarawak) Sdn Bhd Subsidiary Catering Sarawak 60%
LSG Sky Chefs Associate Holding company Malaysia 30%

[edit] Financial Highlights

Malaysia Airlines experienced its worst lost in FY2005, with RM1.25 billion losses. Since then, the Business Turnaround Plan was introduced to revive the airline, in the year 2006. At the end of the airline's turnaround program, in financial year 2007, Malaysia Airlines gained RM851 million net profit: a swing of RM987 million compared to RM136 million in losses in FY2006, marking the national carrier’s highest-ever profit in its 60-year history. The achievement was recognized as the world’s best airline-turnaround story in 2007, with Malaysia Airlines being awarded the Phoenix award by Penton Media's Air Transport World: the leading monthly magazine covering the global airline industry.[24]

Malaysia Airlines Financial Highlights.[25]
Year ended Revenue
(RM '000)
Expenditure
(RM '000)
Profit/(Loss)
after Tax (RM '000)
Shareholders
Fund (RM '000)
EPS after tax
(cents)
31 December 2002 8,864,385 8,872,391 336,531 2,562,841 38.7
31 December 2003 8,780,820 8,591,157 461,143 3,023,984 36.8
31 December 2004 11,364,309 11,046,764 326,07 3,318,732 26.0
31 December 2005 9,181,338 10,434,634 (1,251,603) 2,009,857 (100.20)
31 December 2006 13,489,549 13,841,607 (133,737) 1,873,452 (10.90)
31 December 2007 15,342,632¹ 14,489,889¹ 852,743¹ 54.24¹
31 March 2008 3,752,9182² 3,620,020² 120,530² 4,056,752² 6.77²

Note

  • ¹ Figures are unaudited. Taken from their financial statement
  • ² Unaudited and First Quarter Results only

[edit] Branding

Malaysia Airlines' branding and publicity efforts have revolved primarily around flight crew, unlike most other airlines which tend to emphasize aircraft and an extensive route network. Malaysia Airlines uses its flight attendants to promote the airline. This branding strategy seeks to portray cabin crews of Malaysia Airlines as representative of Malaysian hospitality and friendliness. [26]During the late 1990s to year 2007, Malaysia Airlines has been using the Going Beyond Expectations slogan to brand itself internationally by heavily promoting its service excellence. With the rollout of the Business Transformation Plan in 2008[27], the CEO of Malaysia Airlines rejected the idea of using MH's network or certain other features as its new branding strategy.[28] Instead, the new branding strategy slogan is MH is Malaysian Hospitality, to emphasize the hospitality of its cabin crew instead of the airline's extensive network and its premium cabin and economy class cabin products.

The airline runs a training program for cabin and flight crew to ensure that the Malaysia Airlines brand experience is delivered correctly. The airline's repute, and the resulting prestige of the job, has allowed it to be highly selective during its recruitment process. Of every thousand candidates who go for interviews, only 50 or 60 are chosen.[28]

[edit] Corporate image

Malaysia Airlines introduced Sarong Kebaya design in 1 March 1986[29] for female flight attendants. It was designed by the School of Fashion at Mara Institute of Technology (Malay: Institut Teknologi Mara) and later known as Mara University of Technology (Malay: Universiti Teknologi Mara). The batik material depicts the kelarai motif, which is a bamboo weave pattern. It appears in the background in subdued hues of the basic uniform color. Superimposed on the kelarai motif is a mixture of Malaysian flora, such as the cempaka, jasmine and the leaves of the hibiscus. The geometric Sarawakian motif is used for the lapels of the baju, edges of sleeves and the sarong. On 1 January 1993, the colors of the batik were enhanced to complement the color of the new uniform. The male flight attendant wears Ottanio color jackets.[26] Singapore Airlines' Singapore Girls uniform is similar Malaysia Airlines' female flight attendants uniform.

Malaysia Airlines Flight Crew
Malaysia Airlines Flight Crew
Color Code of female flight attendants
  • Sarong Kebaya with yellow flowers with red background are for the Inflight Supervisors.
  • Sarong Kebaya with pink flowers are for the Chief Stewardesses, Leading Stewardesses and Flight Stewardesses.
  • Sarong Kebaya with magenta flowers are for the ground frontliners.
Color Code of male flight attendants
  • Dark shade Ottanio color jackets are for Inflight Supervisors, Chief Stewards, Leading Stewards and Flight Stewards.
  • Light shade Ottanio color jackets are for male ground frontliners.

[edit] Corporate logo

Malaysia Airlines logos since inception in 1947
Malaysia Airlines logos since inception in 1947

The history of the airline started in 1937, when Malayan Airways Limited was registered as a company. Flying operations started in 1947, with the aircraft bearing the symbol of a Winged Tiger. In 1963, the airline was renamed Malaysian Airways Limited, when the Federation of Malaysia was formed. Subsequently, Borneo Airways Limited was absorbed by Malaysian Airways Limited. In 1965, with the political separation of Singapore from Malaysia, there was continued participation by the governments of Malaysia and Singapore in the airline. In 1967, the company changed its name to Malaysia-Singapore Airline Limited (MSA), which was the joint national air carrier for both countries, and a new logo was introduced.

In 1971, Malaysia-Singapore Airline Limited was separated into two airlines, each with its own policies and objectives, leading to the birth of Malaysia's flag carrier, Malaysian Airline System (MAS), on 3 April 1971. The name was chosen because, in abbreviated form, MAS(as in EMAS) in Malay means gold, to symbolize quality service.

A new corporate logo designed by Mara Institute of Technology (Malay: Institut Teknologi Mara) later known as Mara University of Technology (Malay: Universiti Teknologi Mara) was introduced on 15 October 1987, retaining the essence of the moon kite, with a sheared swept-back look. Along with the new corporate logo, a new type style - MALAYSIA, was created. It is italicized to slant parallel with the logo to accentuate speed as well as direction. Within this corporate typestyle, the letters MAS bear red clippings to denote the initials of the statutory name of the airline, Malaysian Airline System (MAS), and were added after the original design was rejected by former Prime Minister Tun Dr. Mahathir. The introduction of blue to the original red logo has national significance. The red and blue divides equally in the middle to denote equilibrium.

[edit] Destinations

A domestic route map of direct flights operated by Malaysia Airlines as of February 10, 2008.
A domestic route map of direct flights operated by Malaysia Airlines as of February 10, 2008.

Before the introduction of the Business Turnaround Plan, Malaysia Airlines operated 118 domestic routes within Malaysia and 114 international routes across six continents.[12]. Malaysia Airlines now flies to 88 destinations across six continents from its primary hub in Kuala Lumpur. It has a particularly strong presence in the Southeast Asia region, which, together with its subsidiary MASWings and Firefly, connects Kuala Lumpur to the most destinations in Borneo Island. Apart from that, the airline has a key role in the Kangaroo Route, on which the airline provides onward connecting flights from main European gateways to major Australian and New Zealand gateways via Kuala Lumpur International Airport, within 5 hours. Malaysia Airlines also operates transatlantic flights from Kuala Lumpur to Newark Liberty International Airport, via Stockholm Arlanda Airport, and transpacific flights from Kuala Lumpur to Los Angeles International Airport, via Taipei.

Malaysia Airlines' strengths have sometimes resulted in protectionist measures to keep it out of key foreign markets. Malaysia Airlines once operated to Vancouver, Canada. However, the Canadian government felt that allowing MAS to land in Vancouver would encroach on territory commanded by Canadian Airlines International Ltd., while Toronto International Airport was considered the preserve of Air Canada. Malaysia's case at the time was not helped by Ottawa's having a year earlier announced the cancellation of Singapore Airlines' landing rights in Toronto.

Boeing 747-400 in special colors
Boeing 747-400 in special colors

Under the Business Turnaround Plan (BTP), Malaysia Airlines began restructuring. The plan is based on the hub-and-spoke approach and the new Domestic Rationalism Policy announced by the Government. This resulted in Malaysia Airlines’ domestic routes being restructured from 118 to 22 routes, and international routes from 114 to 90 [12]. The domestic restructuring plan began in August, 2006, while the restructuring of the international sector is being phased-in. Phase One rerouted flights to center on KL International Airport as the primary hub. Phase Two requires routes to be terminated if found to be unprofitable.

The plan is not just to reduce the airline's flights, but also to improve connectivity and frequency on targeted routes. Previously, Malaysia Airlines only operated 2 daily banks of flight arrivals and departures. However, from August, 2006, the airline began operating 4 banks of flight per day. The airline also launched new flight schedules, effective August 2006, to ensure better connectivity. Moreover, the airline is now focusing on the emerging markets: particularly China, India and Southeast Asian countries as its core network to cushion global economic downturns' effects on it.

As of March, 2007, Malaysia Airlines flies to 88 destinations. In cooperation with code-share partner airlines, the airline serves more than one hundred destinations worldwide. It was the first airline in Southeast Asia to fly to South Africa, following the demise of apartheid, and the only airline in southeast Asia that serves South America via its services to Buenos Aires, Argentina. In 2006, it suspended its routes to Manchester, Vienna, Fukuoka, Chengdu, Nagoya, Xi'an, Cairo, Kolkata, Ahmedabad and Zurich under its Business Turnaround Plan. Beginning in 2008, the airline operates new destinations, with Macau and Yogyakarta being the latest additions to its list of destinations.

Boeing 777-200ER in Heliconia livery
Boeing 777-200ER in Heliconia livery

The airline may even reinstate routes that used to be served. As for domestic destinations, the implementation of the Domestic Rationalism Policy in August, 2006, saw Malaysia Airlines lose its non-trunk domestic routes, and it now operates only 19 trunk routes within Malaysia. The national carrier operates 7 trunk routes between KL International Airport (KLIA) and Peninsular Malaysia cities, 6 trunk routes between KLIA and Sabah/Sarawak, and 6 trunk routes within Sabah and Sarawak. In July, 2006, Malaysia Airlines added 3 additional non-trunk routes, increasing its total domestic routes to 22.

From its creation until 31 July 2006, Malaysia Airlines provided air links between remote areas of East Malaysia and its urban centers through Rural Air Services (RAS). Using 19-seat Twin Otter aircraft, Malaysia Airlines provided services to airfields in Bakalalan, Bario, Belaga, Kudat, Lawas, Limbang, Mukah, Long Akah, Long Banga, Long Lelang, Long Seridan, Marudi, Mulu and Tomanggong. The unprofitable RAS was inherited by Malaysia Airlines through the creation of Malaysian Airline System (MAS), from 1971 until 2006. The service is now operated by MASWings, a newly-formed subsidiary wholly owned by Malaysia Airlines, which previously operated as FlyAsianXpress.

Malaysia Airlines also owns its own charter flight division. Malaysia Airlines' charter flights have flown to destinations around the world, such as Guilin, which was previously one of Malaysia Airlines' scheduled destinations, and Christmas Island. Malaysia Airlines has also been the official airline for the Manchester United Asian Tour[30] It also has a substantial Hajj operation.

[edit] Flight Numbers

Malaysia Airlines' flight numbers are allocated according to geographical region. Code-share flights bear different digits in the third column to indicate different partners.

[edit] Traveling with Malaysia Airlines

Malaysia Airlines operates a fleet of aircraft with two-cabin and three-cabin configurations. Malaysia Airlines' B777-200ER fleet has a two-cabin configuration, with Golden Club Class and Economy Class. Its B747-400 fleet has a three-cabin configuration, also including First Class. Malaysia Airlines' premium cabins and Economy Class have been given numerous awards for excellence in product and service delivery.[31]

[edit] Ground Service

Passengers may check-in between 2 and 48 hours prior to flight departure. This may be done at the counter, or at the premium-classes Golden Lounge within the airport. Self-service kiosks(CUSS) are also available at Kuala Lumpur International Airport.

Alternatively, passengers may check in at KL Sentral City Air Terminal, through the internet or by phone. Online printing of boarding passes is available through internet check-in. Passengers on short trips may also check-in for their return flight upon departure from the city of origin.

[edit] Airport Lounge

Malaysia Airlines' Golden Lounge
Malaysia Airlines' Golden Lounge

The Golden Lounge is the airport lounge for Malaysia Airlines First Class, Golden Club Class passengers and Enrich Platinum and Enrich Gold members. The clubs all have open bars and food catering. There are 14 lounges throughout the world, and qualified passengers have full reciprocal privileges at lounges operated by selected partners. The lounge offers various services such as business centers, food catering, slumber rooms and child-care centers.[32]

Lounges are available in the locations listed below:

[edit] Cabin

[edit] First Class

The newer version of First Class was introduced in 2005, and is only available on the Boeing 747-400, with 12 seats. It features a 180-degree flat-bed seat with a pitch of 80 inches (200 cm) and a width of 20.5 inches (52 cm). The passenger can choose from a variety of positions at the touch of a button. The seat also doubles as a visitor’s seat. There is a 115V AC power outlet for a notebook or other electronic devices, a 15-inch LCD touch-screen monitor for Select 3000i that can be stowed away when not in use, and a personal controller unit. Amenity kits and a turn-down seat service are available on all flights, where the cabin crew will transform the seat into a bed. First Class cabins are fitted with a mood lighting system, synchronized with the time and duration of the journey, which enables passengers to better-adjust to the destination's time zone, reducing the effects of jet lag.

New business class
New business class

[edit] Golden Club Class

Business Class or Golden Club Class is available on all of Malaysia Airlines' fleet. The newer business class, introduced in 2005, can only be found on Boeing 747-400's, which have 41 seats, and the Boeing 777-200ER, which has 35 seats. It features a 171-degree lie-flat seat, with a pitch of 58" on the Boeing 747's and 72" Boeing 777's (to make up for the removal of First Class). The seat has a width of 20.25", with an electronic controller that can choose from a variety of positions at the touch of a button. There is a 10.4-inch LCD touch screen monitor, a personal controller unit and a 115V AC power outlet for other devices. A different Business Class is available on Airbus A330-300 aircraft, featuring reclining seats and footrests. Golden Club Class cabins are also fitted with a mood lighting system, synchronized with the time and duration of the journey, which enables passengers to better-adjust to the destination's time zone, reducing the effects of jet lag.

[edit] Economy Class

Economy Class is available on all of Malaysia Airlines' fleet. Seats feature a pitch of 34" and width of 17", with footrests and lumbar support (except on B737-400s). On the Airbus A330-200, Boeing 747-400 and Boeing 777-200ER, it offers a 6.5" personal TV located behind each seat, and a footrest located below the seat in front, while the Airbus A330-300 offers audio plus a movie that all passengers can view on overhead LCD screens. The Boeing 737-400 has a standard Economy seat. Two (or rarely three) choices of meals will be served to passengers on medium and long-haul flights, while meal boxes will be served to passengers on certain short-haul flights. Orange juice, mineral water, coffee and tea are the usual choices of beverages. Beer, wine and other beverages are also available, but only on international flights.

[edit] In-flight entertainment

Select 3000i Portable Media Player
Select 3000i Portable Media Player

Select is the in-flight entertainment system of Malaysia Airlines. There are three types of Select: Select 3000i, Select 30001 Portable Media Player and Select Mainscreen. However, the Boeing 737-400 does not have Select Mainscreen or either version of Select 3000i, and does not offer audio entertainment or an overhead screen.

Select 3000i
All Malaysia Airlines Boeing 777-200ER and Boeing 747-400 aircraft are equipped with next generation Inflight entertaiment system, Select 3000i. Passengers can choose from over 500 hours of audio and video programming. With 200 music CD's and 50 on-demand movies and television shows available, passengers can start, stop, forward and rewind their selected program at will. A touch-screen personal TV is available for First Class and Golden Club Class (Business Class) passengers on board Boeing 747-400 and Boeing 777-200ER aircraft. Select 3000i was developed by Panasonic Avionics Corporation. Apart from offering programs in 14 languages, Select 3000i also offers language lessons in 22 languages.[33] Malaysia Airlines A330-200 aircrafts are fitted with personal television screen on every seats in both economy class and Golden Club Class but does not features the Audio Video on Demand in economy class.
Select 3000i Portable Media Player
Developed by e.Digital Corporation, Select 3000i Portable Media Player is an inflight entertainment system provided to Malaysia Airlines' Business Class passengers on selected regional and semi-long-haul A330-300 aircraft on North and South Asia routes. Passengers can choose from over 100 hours of on-demand movies, TV shows and sports. The system is also used by Lufthansa, Air France-KLM and Alitalia.[34][35]
Select Mainscreen
Used in Economy Class on A330-300 widebody regional and semi-long-haul aircraft.

[edit] Fleet

The passenger aircraft fleet of Malaysia Airlines comprises four models: the Boeing 747-400, the Boeing 777-200ER, the Boeing 737-400 and the Airbus A330. Malaysia Airlines operates a young fleet, in line with the policy stated in the Business Transformation Plan to operate efficiently.[27] Malaysia Airlines starts its fleet registration letters with 9M-M**.

[edit] Airbus A330

Malaysia Airlines operates two variants of the Airbus A330: the Airbus A330-200 and the Airbus A330-300. This aircraft is used to fly short-to-medium-haul routes, such as Kunming and Chennai. Malaysia Airlines owns all A330-200 and -300 aircraft, and the first was delivered in 1995.[36]. Malaysia Airlines' Airbus A330 aircraft bear registrations of 9M-MK*. Their Golden Club Class interiors and seats have been refurbished.

All 14 Airbus A330 aircraft are painted in the standard Malaysia Airlines' livery, with its logo on the tailfin.

[edit] Airbus A380

Malaysia Airlines signed a contract with Airbus EADS to purchase 6 Airbus A380 in 2003. The airline expected to receive its first Airbus A380 in 2007, but delivery was delayed due to manufacturing problems. On 3 October 2006, upon completion of a review of the A380 program, the deliveries were pushed approximately two years back to 2009.[37] [38] Malaysia Airlines and Airbus agreed on compensations and a new schedule for the deliveries on 31 March 2008, considering the new overall plans of the airline, with the deliveries to be done between January and August, 2011.[39]

[edit] Boeing 737

Malaysia Airlines operates a large fleet of Boeing 737-400 aircraft. These fly to regional South-East Asia and domestic destinations. All planes are owned by Malaysia Airlines and have an average age of 14.6 years. The Boeing 737-400 will be retired when new Boeing 737-800 Next Generation aircraft are delivered, starting in 2010. The 737-800 aircraft will enable much longer ranges to be flown using Boeing 737-series aircraft.

[edit] Boeing 747

Malaysia Airlines Boeing 747 aircraft
Malaysia Airlines Boeing 747 aircraft

Malaysia Airlines first received Boeing 747-400 aircraft in the year 1989. Two of the older aircraft, now registered VH-OEC and VH-OED, were sold to Qantas, while Malaysia Airlines leased one Boeing 747-400 to Singapore Airlines. The aircraft is deployed on medium-long and long-haul routes such as London and Los Angeles. All 13 Boeing 747-400 passenger aircraft are owned. The airline also owns 2 Boeing 747-400F cargo aircraft.

The Boeing 747-400 aircraft have an average fleet age of 11.5 years. All aircraft have been fitted with new interiors, new seats in Economy class, angled, lie-flat beds in Golden Club Class and flat beds in First Class, and next-generation inflight entertainment systems. Malaysia's Boeing 747-400 is now its only aircraft series to have a 3-class cabin configuration. The fleet of Boeing 747-400 aircraft bear a registration number of 9M-MP*.

Two of the Boeing 747-400s (9M-MPB and 9M-MPD) were painted in Hibiscus livery from 2005 to 2008.

[edit] Boeing 777

Malaysia Airlines Freedom of Space aircraft in Kuala Lumpur International Airport
Malaysia Airlines Freedom of Space aircraft in Kuala Lumpur International Airport

All Malaysia Airlines Boeing 777-200 aircraft are Extended Range (ER) models. The airline deployed these aircraft to fly medium-to-long-haul routes, such as Melbourne, Frankfurt, Perth and Shanghai. The Boeing 777 aircraft bear the registration numbers 9M-MR*, and have a maximum flight range of 12,779 km (6,900 nm). Malaysia Airlines owns all of its 17 777-200ERs. In 1997, the airline also became the record-holder of the world's longest non-commercial non-stop flight, from Boeing Field in Seattle to Kuala Lumpur, flying eastward, passing over the European and African continents, breaking the Great Circle Distance Without Landing record for an airliner with its Boeing 777-200ER dubbed Super Ranger: a record now held by the Boeing 777-200LR.

The first 777-200ER was delivered in 1997, and the average age is 8.5 years. All aircraft are in a two-class configuration, equipped with Audio Video On Demand (AVOD) in all traveling classes and angled, lie-flat seats in Golden Club Class. One of the Boeing 777-200ERs (9M-MRD) was painted in Heliconia livery from 2005 to 2008.

[edit] Passenger

The Malaysia Airlines passenger fleet consists of the following aircraft:[40][41][42]

Malaysia Airlines Fleet
Aircraft In fleet Order Option Engine Seat Configuration Routes Notes
Airbus A330-200 3 0 0 Pratt & Whitney PW4168A 229 (-/42/187) International short-medium haul Equipped with PTV
Airbus A330-300 11 0 0 Pratt & Whitney PW4168 294 (-/44/250)
302 (-/42/260)
International short-medium haul Portable Media Player (AVOD)
provided to Golden Club Class passengers
Airbus A380-800 0 6 0 Rolls Royce Trent 970 International long haul Entry into service: January 2011
Boeing 737-400 37 0 0 CFM56-3C1 144 (16/-/128) Domestic/Regional short haul Exit from service: 2014
Boeing 737-800 0 35 20 CFM56-7B Domestic/Regional short haul Entry into service: September 2010
Replacing: Boeing 737-400
Boeing 747-400 13 0 0 Pratt & Whitney PW-4056 359 (12/41/306) International medium-long haul Equipped with AVOD
Boeing 777-200ER 17 0 0 Rolls Royce Trent 892 282 (-/35/247) International medium-long haul Equipped with AVOD
Total 81 61 35        

[edit] Cargo

The Malaysia Airlines cargo fleet consists of the following aircraft:[43]

Malaysia Airlines Cargo fleet
Aircraft In fleet Order Option Engine Capacity Notes
Boeing 747-200F 4 0 0 100,000kg Leased
Boeing 747-400F 2 0 0 Pratt & Whitney PW4056 120,000kg
Total 6 0 0    

[edit] Fleet Expansions

Airbus A380 MSN001 in Malaysia Airlines livery.
Airbus A380 MSN001 in Malaysia Airlines livery.
  • On April 26, 2007, MAS requested proposals from Boeing and Airbus for up to 55 aircraft to replace the Boeing 737-400's, plus proposals for new wide-bodied aircraft for long-haul service: rumored to be the Boeing 747-8, Airbus A350 or Boeing 787.[44]
  • On March 31, 2008, MAS announced the purchase of up to 55 Boeing 737-800. This order includes an option to buy 10 additional planes. This deal is expected to be worth more than $3 billion, with delivery beginning in 2010. In addition, MAS has the option to swap the Boeing 737-800 for the larger Boeing 737-900. The delivery of the 6 Airbus A380 was also confirmed, for January through August, 2011.[45] [46]

[edit] Retired

List of aircraft that Malaysia Airlines and its predecessor companies have flown in the past.[47]

Malaysia Airlines Retired Fleet
Aircraft Total Exit From Service Notes
Airbus A300 6 July 1995
Airbus A310 1 October 1990
Airbus A330-200 2 (3 still in service)
Airbus A330-300 2 (11 still in service)
Boeing 707 10 February 1980
Boeing 737-100 5 September 1972
Boeing 737-200 23 March 1978
Boeing 737-400 37 (37 still in service)
Boeing 737-500 9 October 2000
Boeing 737-700 BBJ 1 June 2003
Boeing 737-800 Leased from Travel Service Airlines.Re-ordered 35 airplanes.
Boeing 747-200 4 October 2005
Boeing 747-300 1 April 2002
Boeing 747-400/400F 8 (13 passenger and 2 freighter aircraft still in service)
Bristol Britannia 9 1963 Malayan Airways leased from BOAC 1961-1963
Britten Norman Islander 4
De Havilland Canada Comet 7 November 1969 5 operated by Malaysian Airways/
Malaysia-Singapore Airlines 1965-1969,
2 leased to Malaysia-Singapore Airlines
from BOAC 1967-1969
De Havilland Canada DHC Beaver
De Havilland Canada DHC-6 Twin Otter 7 August 2006
Fokker F27 20
Fokker F50 12 August 2006 Now operated by MAS subsidiaries,
MASWings 8,
Firefly 2
Douglas DC-3
Douglas DC-4
Lockheed Super Constellation
McDonnell Douglas DC-10-30 6 March 2000
McDonnell Douglas MD-11 6 March 2000
Twin Pioneers 2
Vickers Viscount 2 September 1963 Malayan Airways 1959-1963

[edit] Frequent flyer programs

Malaysia Airlines has two frequent flyer programs: Grads for Students by Malaysia Airlines (Grads) and Enrich by Malaysia Airlines (Enrich). Grads is a frequent flyer program with benefits designed for students. Enrich by Malaysia Airlines is a frequent flyer program for frequent travelers that comprises a variety of airlines, banks, credit-card issuers, hotels and lifestyle retailers around the world.

[edit] Enrich by Malaysia Airlines

This image is a candidate for speedy deletion. It may be deleted after Sunday, 4 November 2007.

On September 30, 1987, Malaysian Airline System introduced the Esteemed Traveller frequent flyer program. In the early 1990s, Malaysia Airlines, Cathay Pacific Airways, Thai Airways International and Singapore Airlines launched their joint Asian frequent flyer program Passages. The joint program was officially dissolved in 1999, and the Enrich frequent flyer program made its debut after the split from Passages.

Enhanced Enrich
On July 12, 2006, Malaysia Airlines introduced its enhanced Enrich frequent flyer program. The program is now known as Enrich by Malaysia Airlines (Enrich), modeled after its more successful frequent flyer program Grads for Students by Malaysia Airlines. One of the enhancements in the program was the introduction of the Enrich Silver membership, which focuses on economy class travelers, while retaining the other memberships: Enrich Blue, Enrich Gold and Enrich Platinum.
Member
Enrich's membership of one million is spread over 240 countries, with the largest number in Malaysia at about 60%, followed by Australia (14%), Singapore, Britain and the US. Enrich membership numbers have been growing at an average of 23 percent per year, well above the industry’s average of 18 percent. Enrich members earned a total of 2.5 billion miles in 2005.
Benefits
There are four levels of Enrich memberships, each offering privileges including priority check-in, priority standby and extra baggage allowance, amongst others. Miles can be accrued on qualifying Malaysia Airlines services, as well through partners, including airlines, hotels, car rental agencies and credit-card companies. Miles accrued by members allow for redemption for free travel, free upgrades and other complimentary services.
Partners
Members of Enrich are able to accrue miles on qualifying flights/stays on the Enrich Partners such as:[48]

[edit] Grads

Grads for Students
GRADS is Malaysia Airlines' frequent flyer program for students above 12 years old. The program enables students holding the membership card to enjoy benefits from Malaysia Airlines and partners' merchant outlets.
Benefits[50]
Students holding GRADS membership card are entitled for discounted airfare and discounts on partners' merchant outlets.

[edit] Partnerships and Code Share Agreements

Malaysia Airlines has code-sharing partnerships with 25 airlines, including four from SkyTeam, two from OneWorld and seven from Star Alliance.[51]

Under the revised Business Transformation Plan unveiled in January, 2008, Malaysia Airlines has embarked on a plan to form a network that resembles an alliance without joining an alliance. The airline requested to join the SkyTeam alliance in 2006 [52], but there is still no outcome from the discussions. This is obvious when Malaysia Airlines signed code-share agreements with Alitalia in Italy and China Southern Airlines in China, both of which are members of SkyTeam, in 2007.[53]

Therefore, instead of waiting to join SkyTeam, Malaysia Airlines launched Project MOSIAC together with the new Business Turnaround Plan for the period until 2012. MOSAIC stands for ‘MAS Overall Strategic Alliance Integration Concept’, to reap the maximum value from Malaysia Airlines' present hub-and-spoke network.[27] The MOSAIC Project’s scope includes identifying high-value code-share partners and Special Pro-Rate Agreement (SPA) partners, increasing agreements with partner airlines, discontinuing non-beneficial code-share partners and optimizing flight connections.

In the second quarter of 2008, Malaysia Airlines is expected to sign another two code-share agreements with Jet Airways and Turkish Airlines, from India and Turkey respectively. This is to enable Malaysia Airlines to tap the central Europe and India markets. [54]

Malaysia Airlines code-shares with the following airlines as of 20 March 2008:

Malaysia Airlines — codeshare agreements & interline partnerships
Airlines Destinations
Air India Burbank, Hyderabad, Los Angeles, Melbourne, Mumbai
Air Mauritius Mauritius
Alitalia Athens, Barcelona, Frankfurt, Geneva, Madrid, Melbourne, Milan, Penang, Perth, Rome, Sydney
All Nippon Airways Fukuoka, Kota Kinabalu, Kuching, Langkawi, Narita, Nagoya, Osaka, Penang, Sapporo, Sendai
Austrian Airlines Vienna
BMI Belfast, Dublin, Edinburgh, Tesside, Lahore, London, Leeds, Glasgow, Manchester,
Cathay Pacific Hong Kong, Penang
China Southern Airlines Beijing, Guangzhou, Shanghai-Pudong
Continental Airlines Special Pro Rate Agreement[55]
Dragon Air Kota Kinabalu, Hong Kong
Egyptair[56] Cairo, Kuala Lumpur
Etihad Airways[57] MoU signed to start codesharing by July 2008 on Kuala Lumpur-Abu Dhabi
Garuda Indonesia Darwin, Denpasar, Frankfrut, Jakarta, London, Medan, Paris, Surabaya
Gulf Air Bahrain, Muscat, Kuala Lumpur
KLM Adelaide, Amsterdam, Auckland, Bergen, Brisbane, Brussels, Copenhagen, Gothenburg, Helsinki, Kota Kinabalu, Langkawi, Melbourne, Oslo, Penang, Perth, Stavanger, Sydney, Stockholm
Korean Air Incheon, Penang
Myanmar Airways International Yangon
Philippine Airlines Cebu, Manila
Qatar Airways Doha
Royal Brunei Airlines Brunei
SilkAir Singapore
Singapore Airlines Singapore
South African Airways[58] Johanesburg
Sri Lankan Airlines Colombo, Kuala Lumpur
Swiss International Airlines Zurich
Thai Airways International Bangkok, Phuket
Transaero Airlines Moscow, Kuala Lumpur
Uzbekistan Airways Tashkent
Virgin Blue[59] Balina Byron, Broome, Cairns, Canberra, Coffs Harbour, Darwin, Frasers Coast, Gold Coast, Hamilton Island, Hobart, Mackay, Newcastle, Rockhampton, Sunshine Coast, Townsville

[edit] Incidents & accidents

Malaysia Airlines is accredited by IATA with the IOSA (IATA Operations Safety Audit).

There have been two accidents involving passenger fatalities on Malaysia Airlines, with a total of 134 fatalities:

Other, non-fatal incidents

  • 15 March 2000 - An Airbus A330-300 (9M-MKB) was damaged by a chemical called oxalyl chloride, which leaked from canisters when unloading, causing damage to the fuselage. The 5-year-old Airbus was sufficiently damaged to be written-off.
  • 30 November 2003 - A cable in a Boeing 777-200ER that allows pilots to turn the plane on the ground had snapped before the Bombay-bound jet was to take off. The incident came just weeks after several wires on an Airbus A330-300 bound for Australia were found to have been cut shortly before take-off. Three of the airline's staff were arrested and later released over what a spokesman described as an act of vandalism, not sabotage.[60] The government and police regarded both incidents as sabotage.
  • 1 August 2005 - A Boeing 777-200ER (9M-MRG) made an emergency landing in Perth after the fly-by-wire primary flight control and autopilot failed to operate, due to a software problem.
  • 3 November 2006- A Boeing 777-200ER (9M-MRI) encountered problems shortly after takeoff from Arlanda Airport, Sweden, when the #1 jet engine on the left wing catastrophically failed and burst into flames. Although the crew did not initially get any indication in the cockpit that something was wrong, they were forced to turn back to Stockholm, where the plane landed safely[61]
  • 23 November 2007- An Airbus A330-300 flying to Seoul, which took off from KLIA at 1:10AM, made an emergency landing at Ho Chi Minh City in Vietnam after smoke was detected in its cargo compartment. The aircraft landed safely in Ho Chi Minh City at 3:11AM.[62]
  • 24 November 2007 - An Airbus A330-300 from Guangzhou was forced to circle KLIA due to a landing-gear malfunction. The crew managed to lower the landing gear manually, and the flight landed safely, although the runway had to be closed due to spillage[63]

[edit] References

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[edit] External links