Malaysia Airlines Possible Acquisition: Go or No-go?

In late 2019, Malaysia Airlines Berhad (MAB) began to appear in Malaysian news headlines again. It was reported that the government has received several proposal with the aim of being a strategic partner to the ailing airline. The Malaysian Prime Minister, Tun Dr. Mahathir Mohamad has reportedly said that all options need to be considered and some of the proposals is considered as “no-go”. The airline has been struggling to be profitable with years of transformation programme have yet to demonstrate significant success.

Focus Malaysia reported that Tun Dr. Mahathir Mohamad said the government has received 5 proposals. While the newspaper has named the first four of them as AirAsia Group Berhad (AAGB), Japan Airlines (JAL), Air France-KLM SA and Malindo Airways Sdn Bhd (Malindo). The fifth proposal has yet to be ascertained from the news reports.

Japan Airlines Co Ltd (JAL)

Japan Airlines is proposing an RM 1.12 bil of cash injection into Malaysia Airlines. In return, it will have a 25% stake in MAB. However, it was reported that the synergy will not be sufficient to cover losses incurred by MAB.

AirAsia Group

Focus Malaysia reported that AAGB estimates synergies of RM 1.4 bil per year. Besides, the synergy is also expected to solve industry’s overcapacity as well as enabling access to AirAsia’s digital and other aviation business.

There are several concerns on the merger or synergy. The first one is a possible monopoly, given the significance of market share both of them have for Malaysian domestic and Southeast Asia regional destinations. The second one is about the access to AirAsia’s digital and other aviation business. This part of AAGB is expected to bring in more revenues compared to the AirAsia airline business itself. Therefore, MAB may not have a bright future as far as profit is concerned.

Air France-KLM

Being a European carrier, the synergy is expected to bring in more benefits to the airlines in terms of maintenance, repair and overhaul (MRO).

Malaysia Airlines has been seeing itself in red for so many years already. IN 2014, it was taken private by Khazanah as part of a multi-year restructuring exercise by the Malaysian government.

Malindo Airways

Malindo offers a one-year “trial period” before the final decision on merger takes place. It hopes that the scale of economies will help both airlines save cost and earn a better revenue.

Go or No-go?

The first foreign CEO appointed during the restructuring exercise was Christoph Mueller, who then resigned before his contract tenure ends with Malaysia Airlines. The optimists may think that he will be successful in bringing the necessary changes to the airline. However, his premature resignation has led the skeptics into believing that he was not successful in turning around the company to profitability.

With MAB now is having a Malaysian as its CEO, we can only hope for the best for the airline. Perhaps it is the best time for everyone in the airline to think of what will be the best solution for the company to be profitable.

Sources

How JAL proposes to turn around Malaysia Airlines – Focus Malaysia

 

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Malaysia Airlines MH 128 Flight Incident

MELBOURNE, June 1st 2017: A Malaysian Airlines flight from Melbourne (MEL) to Kuala Lumpur (KUL) was asked to turn back to Melbourne due to an act of disruption by a single perpetrator. The flight, MH 128, departed from Melbourne at 11.11pm yesterday (31 May 2017).

The disruptive passenger was allegedly trying to open the cockpit door. Fortunately, a number of brave passengers acted fast and managed to subdue the disruptive passenger before the passenger made it to the cockpit. While the event is unfolding, the flight crews managed to alert the pilots in the cockpit, resulting in the eventual turn back by the pilot.

The airline gave a brief statement on its official site. Here is the full statement:

MH128, which had departed Melbourne Airport at 11.11pm scheduled  to arrive Kuala Lumpur at 5.28am on 1 June, made a turn back to Melbourne after the operating Captain was alerted by a cabin crew of a passenger attempting to enter the cockpit.

Malaysia Airlines would like to stress that at no point was the aircraft ‘hijacked’.

MH128 safely landed in Melbourne airport at 11.41pm.

Following the incident on MH128, the disruptive passenger has been apprehended by airport security. Malaysia Airlines together with the Australian authorities will be investigating the incident.

Safety and security are of utmost priority to malaysia airlines. The airline wishes to apologise for the inconvenience caused.

Passengers have safely disembarked the aircraft and will be screened by Australian authorities.

They will be accommodated at hotels and offered on the next available flight or on other carriers.

Updated as 12.19am (GMT+8), 1 Jun 2017.

 

 

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Malaysia Airlines MH2718 Flight Incident

SIBU – Saturday, April 8th 2017: A Malaysia Airlines Flight MH2718 carrying 61 passengers and 6 crew members has skidded on the runway of Sibu Airport upon landing at 10:17 PM that day.

Sibu Airport 2015-03-27 16.17.04
Sibu Airport 2015-03-27 16.17.04

Everyone onboard had safely disembarked from the Boeing 737-800 aircraft via two side rafts. The cause of the incident is still unknown.

April 10th 2017 Update: Malaysia Airports said the runway at Sibu Airport has been reopened at 0000 hrs on Sunday, April 9th 2017. Due to the runway closure, 48 lights and 3,787 passengers were affected.

Source: The Star

 

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[ MH370 Update ] Search Will Conclude in December 2016

9M-MRO, the aircraft involved in MH370. Picture by planespotters.net.
9M-MRO, the aircraft involved in MH370. Original picture by planespotters.net.

Canberra, August 24th 2016: The Joint Agency Co-ordination Centre (JACC) said the Australian-led search for the missing Malaysia Airlines flight MH370 is expected to wrap up in December.

The search will be suspended indefinitely if there is no new evidence found. It was originally scheduled to finish in August, but bad weather and unexpected search vessel maintenance has pushed forward the schedule.

The latest statement, jointly released by JACC as well as Australian Transport Safety Bureau (ATSB) said over 110,000 square kilometers out of 120,000 square kilometers total search zone has been thoroughly explored.

About MH370: On March 8th 2014, the airplane vanished while it is on its way to Beijing, China. No major piece of wreckage has found. It is believed to be crashed at a remote location in Indian Ocean.

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Coming Soon: Better Meals from Malaysia Airlines

Malaysia Airlines 9M-MLQ 2014-07-15 09.28.21
Malaysia Airlines 9M-MLQ 2014-07-15 09.28.21

Malaysia Airlines will revamp its economy class meals to give more value for its customers. Yes, you heard it right. Economy class passengers will enjoy better meals in the future.

Malaysia Airlines Chief Commercial Officer, Paul Simmons has said the new menu have improvement in ingredients by having more than double the protein size and bigger portions. Besides, overall presentation of the meal will also be improved.

Passengers for short-haul flights will be able to enjoy better in-flight dining experience as hot meals will be introduced for them. All these improvements have added 20% of the overall meal cost.

“This (hot meal) includes dishes such as Japanese inspired appetiser shrimp salad with spring onion, sesame seed chicken teriyaki served with Japanese rice and also Korean influenced kimchi chicken with Asian greens and deep fried queen fish and Kung Pao sauce for North Asian destinations”, said Malaysia Airlines in a statement.

“More Malaysian dishes will also be served on flights between Kuala Lumpur to Australia including curry and rendang as part of the airline’s move to provide a truly Malaysian experience to reflect the cultural richness of the national airline,” it added.

Source: The Star

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