[cityprofessional]

+1 Str8Talking

As we all know from this very forum, BA LHR-SYD in J is around £4k, but BA OSL-LHR-SYD is £2k. So does that mean that BA is hideously unprofitable, on the verge of collapse, and giving away seats with a £2k cash sweetener?

Ummm, I don’t think so – that’s just the way flight pricing works

[syclik5]

@AMcWhirter

So – are you suggesting that instead of charging only £230 extra for a flight to Australia in comparison with a flight to Kuala Lumpur, that MAS should charge something much closer to double the fare to KL?

I don’t know if you’re familiar with pricing on the Kangaroo Route, but it is quite competitive. MAS won’t do themselves any favours by pricing themselves out of this market.

[AMcWhirter]

Hello Str8Talking

I wasn’t comparing MAS pricing with the sort of “beyond hub” prices offered by the Gulf carriers which are designed to compete with and/or undercut the direct flight fares from Europe.

For example, in the case of CPT who would pay as much or more (than a BA direct flight) to take the longer routing via DOH ?

I was trying to show how low the yields were for MAS when it sells kangaroo route flights.

In years gone by, the SE Asian carriers made a good living on the kangaroo route.

But now that kangaroo route yields have been driven down by Gulf carriers, the yields between SE Asia and Australia have also been forced down by regional low-cost carriers. (e.g. Scoot, Air AsiaX, Jetstar).

So SE Asian carriers are finding it tougher today.

[TominScotland]

Alex, I fully understand where you are coming from with this but not sure that I agree with your analysis when you say that “I was trying to show how low the yields were for MAS when it sells kangaroo route flights.”.

With respect, the reality is that MAS would be very unlikely to fill all their Business Class seats from LHR to KUL at £2,700+ so they need their transfer business. Therefore, the revenue for the KUL is surely not just the add on to their LHR – KUL fare but the appropriate proportion of the total journey – approximately £1,000. While still not a great fare, it is very different from the under £300 to which you refer.

[MarcusGB]

Re the Putin meeting, no they specifically referred to the missing jet, so i was not confused, but there is international drive to find and secure technology and funding for this. Ministers were specifically “as one” on this matter it was reported, with funding and technology sharing agreed going forwards.
Clearly she would not have been meeting Putin and other Ministers on the other missile attack!

As mentioned, I have had two friend fly down here to Sydney int he last 6 weeks, and one return 3 days ago. ALL their flights KUL-SYD and returning were full. LHR -KUL some Business seats were free, but unlike Thai who would standby upgrade for $640 from LHR, MH were wanting over £1,050, so they were not getting any take up. Not a good business move really, and a policy which they should rapidly revise if they want revenue.

Both people were very happy with the A380 service.

It is quite often that Flights to the far East only cost £2-300 extra to continue on down to Australia, in Economy. This is common with SQ also, and has always been the case with MH.
The same applies to Etihad to Abu Dhabi, or going on to The Far east say BKK/ KUL/SIN, in business it can be as little as £100 extra.

An Article in the Sydney Morning Herald at the weekend, quoted Malaysian Management here in Australia, stating that the Australian routes were the most lucrative after their domestic network, and they would be here to stay in their existing form. They are now running A333’s rather than old 747’s so more fuel efficient, less loads to fill.
They indicated confidence from Australia had been slowly re-building.

I first flew MH in 1991 when coming down to Australia to work, and they also had their “stopover programs” which included several days hotels and domestic flights for a reasonable amount. This is still very popular, and their domestic network is very busy, and also brings important revenues to the Islands, and country as a whole for tourism. This is one of the benefits for the Malaysian Government, and why in whatever form, MH will survive as a National carrier.

Most people i talk to here in Sydney who fly, have no problems taking MH, but they charges probably %50 more flying from Australia to Europe, with most Economy seats around £1,000 return, and business 60-100% more, compared to the same trip starting from Europe.
The same goes for all the Airlines. If we said base fares from Sydney to London were that much more from here up to Europe, then clearly not all the Airlines are selling Ex Europe tickets only, so revenues are far better and profits selling for those travelling from Australia to The Far East, and beyond.

i have also found fares with Etihad for £2,750 return LHR – AUH -SYD, but cheaper if you stay over for a couple of days,and these nights in 5 -+ star accommodation, is usually included in the Premiums of First or Business Class fares. I have also had a Business return for Euros 2,000 around £1,500 on Etihad ex CDG!

With all the extra ground services with Etihad, chauffeur cars, hotels, superb lounges etc, i no longer choose SQ or MH or TG to come to Australia. I think many travelling from Europe are taking the same view, hence the EK and EY flights are extremely busy if not full on most flights.

[LuganoPirate]

I realise fares are often market specific but as we will be homeless for a week in December, I was looking yesterday at Bali and Sri Lanka ex JNB. Curiously the fares were in pounds but the cheapest was CX, then QR followed by MAS for the Bali destination. Sri Lanka was only £150 cheaper as a destination which i thought strange as it’s much closer, though of course CX and MAS were much more expensive.

[AMcWhirter]

Some information on the new MH upgrade programme.

http://www.businesstraveller.com/news/100999/malaysia-airlines-launches-seat-auction-syste

[JKL]

MAS are also currently offering a free one-night hotel in KL: http://www.malaysiaairlines.com/uk/en/campaign/kl-stopover.html

Incidentally, MAS almost always seem to have sales on (even before recent events). They’re rather like DFS Sofas (for those in the UK) in that respect – you’d be mad to buy when there’s not a sale 😉

They’re currently advertising LHR-KUL in economy for £489 which is the lowest I’ve ever seen it (usually around £579 or so)… That said, their business class fares to KUL have never struck me as particularly competitive, although there are some interesting anomalies – e.g. LHR-KUL-BKK, with a stopover in KL, is substantially cheaper (c.£1950) than just going LHR-KUL (c.£2700). Similarly I noticed the other day that BKK-KUL-HKG was almost half the price of KUL-HKG…

On the other hand, perhaps MAS fares are indeed competitive for a direct flight – BA seem to be charging even more for LHR-KUL when they start on the route. I looked at some dates in June and October and it was coming in at c.£700 in economy and £3000 in Club… Which I find curious, as to my mind there is simply no contest between a 777 and an A380 in terms of passenger comfort. BA seems to be substantially cheaper in First though, so perhaps that’s where they’re planning to compete?

[MarcusGB]

Many Airlines are offering £1,800 to KUL thought these are indirect, Etihad with 2 nights stopover in AUH each way and complimentary chauffeur cars all points included. KLM also have direct flights, and it is highly likely \mH will withdraw the AMS-KUL route and leave that for KLM.
they also have excellent fares from as low as £1350 return this year as we have travelled on.
I also had a fare from CDG on Etihad in Euros, working out at £1,340 return business class, with again complimentary 5 star hotel stopovers u can choose, chauffeurs, and actually double miles promotions in Business, triple in First.

Often on all the carriers in The gulF, and Far East, it is less to go onto another country in the Far East that stop in SIN, KUL, or BKK, with direct flights with that hub Airline.

[MarcusGB]

The Dutch prime Minister is in Australia for two days, and it was reported on the news a pledge and agreement directly from both PM’s and a renewed agreement to seek justice and conclude the recoveries this week of some more of the remains still at the crash site in Ukraine.

PM Tony Abbot, restated that he will be discussing this matter with President Putin at the G20 meeting in Brisbane in a week.

the Dutch PM reminded everyone as Mr Puitin, that it was The Dutch Government who directly assisted them when their Submarine was lost, and he compared the losses to both then and recently alike. It was good to have this aired on TV, without interpretation or reporting of, nut just to hear them directly. Clearly a common Purpose and determination for the recovery, and for justice to be found for this crime, that binds the feelings of Many Dutch and Australians.

[AMcWhirter]

Reuters reports that MAS’ losses have increased substantially compared with the same period last year.

In the three months covering July to the end of September 2014, MAS’ loss was M$575 million or US$170 million) which is around M$200 milion worse than in the same period last year.

Reuters says that MAS will slash one-third of its workforce and will seek a new chief.

http://uk.reuters.com/article/2014/11/28/malaysia-airline-results-idUKL3N0TI34A20141128

[MrMichael]

A crying shame Alex, it really is.

[AMcWhirter]

News is breaking that Aer Lingus’ CEO Christoph Mueller has been appointed to head up troubled Malaysian Airlines.

[canucklad]

You really do have to feel for Malaysian………
Just when you’re working hard to sort out your reputation , this appears on your aircraft…….

http://www.travelmole.com/news_feature.php?news_id=2014412&c=setreg&region=2

: )

[AMcWhirter]

Boris Johnson returned to London with MH2.

He was something of a “hero” on board that flight, helping to calm a drunk passenger, according to the BBC.

http://www.bbc.co.uk/news/uk-england-london-30308697

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