I REFER to the story “MAS needs strategic investors with vast experience, say analysts” (NST, July 10).
Malaysia Airlines Bhd’s (MAB) situation indicates that it needs a top-flight aviation leader with deep knowledge and experience of the international airline business to turn the airline around.
He could be a Malaysian or a foreigner.
Let’s avoid the 2014 mistake; he should be from a full-service airline.
Managing a full-service airline is different from the low-cost segment, business jets and helicopters. Allowing a local company to take over the airline should be the last resort.
Selling it to a foreign airline would mean that national pride has been dented as it would only reveal that Malaysians are unable to manage the airline business.
What is important is for the management to see where it is failing and take steps to fix them.
Does the airline have the correct people?
Every airline, including low- cost carriers (LCCs), is facing stiff competition.
Escalating oil prices and fluctuating currency exchange rates are other factors the industry has to deal with.
What is important is to manage yield and costs.
A drastic decision was made shortly after the change in management to ground the fleet of 12 777-200ERs, prompting many pilots, engineers and cabin crew to leave for other airlines.
A few 777s were parked in the desert, while others remain grounded at the Kuala Lumpur International Airport.
Were the 777s that old or not airworthy to operate for another two or three years?
This resulted in the carrier facing a shortage of aircraft, which prompted it to lease six Airbus A330-200 jetliners.
Instead of building markets, the easy way out was taken to axe destinations.
A mind-boggling 35 international destinations have been axed under the five restructuring exercises since 2000.
It won’t be a surprise if another restructuring of the international network is carried out in the near future.
This could result in a surplus of staff, including pilots and engineers.
The changing landscape of the aviation industry should prompt Malaysia Airlines to re-launch FireFly’s jet operations to operate domestic and regional flights.
It is getting more difficult for full-service carriers to compete with LCCs and the liberalisation of markets.
Fare wars due to escalating competition and rising operating costs are worrying concerns for airlines.
Competition must be on a level-playing field.
Flag carriers in the region are launching their LCCs.
Malaysia Airlines should evaluate the initiative.
I am not wrong to say that MAB is interested in filling seats with low-fare offers. This will only kill the required yield on the route.
No airline will survive the crunch if it thinks that it could match the low fares offered by LCCs just to fill the seats.
William Dennis
Subang Jaya, Selangor