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Old 18th Mar 2006, 21:03
  #526 (permalink)  
concorde001
 
Join Date: Mar 2005
Location: United Kingdom
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Originally Posted by AlphaWhiskyRomeo
Why are MAS pulling out?
Thought their load factors were ok - and they are sending a lot of North West based travellers to Australia.
NWI-MAN on FlyBe is to be served by a Dash 8, as previously posted.
MH are having alot of problems at the moment. They are very unprofitable and the CEO has developed a three year 'Rescue Plan' to restructure the company and return it to profitability. I have seen the plan, and according to it none of MH's European operations are profitable - that includes LHR! They are in negotiations to join Skyteam and the plan is to concentrate on three or four European cities. At the moment there is talk of LHR, CDG, AMS and possibly FRA or FCO. LHR makes sense because it has alot of high yielding passengers, huge O&D market, not to mention strong links with Australia. AMS and CDG are Skyteam hubs and the plan is AF and KL will provide feed for MH there from all over Europe.

MH have admitted that:
-66 of the airlines' international routes are unprofitable while 48 are profitable.
-Of its 118 domestic routes, 114 are unprofitable!!!!
-without the implementation of the 'Rescue Plan' the company will run out of cash by April!

I don't think there is anything that MAN could have done to stop MH pulling out - MH have decided to cut their fleet by a quarter and it has been reported that 12 744s are about to go.
For those of you interested here is MH's new business plan to save the company from further losses:
http://hq.malaysiaairlines.com/mys/e...s/MASWay_F.pdf

Just look at the Table on page 30!

Good luck to MH
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