Malaysia Airlines Turnaround Plan 2011/2012

Malaysia Airlines (MAS) cut as many as 12% of their routes in order to cut operation costs. I think MAS can maintain their Kuala Lumpur - Rome route with twice weekly instead trice weekly. Singapore Airlines (SIA) operate Singapore - Rome twice weekly with 777-300 but with a better products offering compared with MAS.

Furthermore, MAS should think to replace the existing aircraft which have high in maintenance costs and high fuel consumption. Malaysia Airlines should buy at least 3 Boeing 747-8 which will be used to Amsterdam, Sydney, Tokyo and New Delhi routes together with 6 A380s that will be operated to London, Amsterdam and Sydney routes. As far as I can see Kuala Lumpur to Los Angeles via Taipei has shown good load factor and almost 100% load factor. Maybe MAS should think to increase to 4 times weekly instead of 3 times weekly.

The existing aircraft should refurbish in line with other airlines starting with MAS' Boeing 777-200 as a kick start for turnaround plan. Based on survey I conducted, most of the people fly with other airlines because of in-flight services or products.

My suggestion:
4x A380 use in London route
1x A380 and 1x 747-8 use in Amsterdam route
1x A380 and 1x 747-8 use in Sydney route
1x 747-8 use in Tokyo and Delhi

Proton New Engine (Campro 1.6 CFE)

Proton need to produce new replacement model frequently in order to attract the customers. The current models are really outdated. For example, Proton should already replace Proton Perdana V6. There is no new model to replace the Perdana V6. Furthermore, Perdana V6 no longer in production.

However they manage to produce all new engine called Campro 1.6 Charge Fuel Efficiency (CFE) which is a good steps for Proton. The performance specs for the CFE mill are 140 PS (or 138 hp) at 5,000 rpm and 205 Nm at 2,000 to 4,000 rpm The new engine able to compete against the CPS as well as two competitors, the Nissan Grand Livina 1.8 and Toyota Innova 2.0L. The new engine will be equipped in new Proton Exora Bold model. This new Proton Exora Bold able to kicks out Nissan Grand Livina 1.8L and Toyota Innova 2.0L.

Click here for more informations about the new engine.

New Proton Exora Bold model

Malaysia Airlines Axes 8 routes

Malaysia Airlines has embarked on a significant route rationalisation as part of its restructuring plan to stem its losses anticipated this year and in 2012.

The route rationalisation involves the withdrawal from the following loss-making routes:
Effective 6 January 2012: Daily flights Kuala Lumpur – Surabaya B737.
Effective 10 January 2012: Thrice-weekly Kuala Lumpur – Dubai A330.
Effective 12 January 2012: Twice-weekly Kuala Lumpur – Karachi – Dubai A330.
Effective 13 January 2012: Twice-weekly Kuala Lumpur – Dubai – Damman A330.
Effective 30 January 2012: Daily Langkawi – Penang – Singapore B737.
Effective 31 January 2012: Thrice-weekly Kuala Lumpur – Johannesburg B777.
Effective 1 February 2012: Twice-weekly Kuala Lumpur – Cape Town – Buenos Aires B747.
Effective 2 February 2012: Thrice-weekly Kuala Lumpur – Rome B777.

“The withdrawal was based on our own independent internal profitability and yield analysis," said Malaysia Airlines’ Group CEO Ahmad Jauhari Yahya. However Malaysia Airlines will start operating back to these routes when the business is stable.

For my point of view, Malaysian able to attract customers if they refurbish their fleets for a better looks and new products offering. Currently Malaysia Airlines products quality are shrinking and left behind by other mainstream airlines such as Singapore Airlines, Emirates and Qatar Airways.