MAS to launch regional premium carrier

7 Dec 2011 by BusinessTraveller

Malaysia Airlines is to launch a new “regional premium airline” by the second half of next year, as part of a business plan aimed at returning the carrier to profitability by 2013.

The new regional subsidiary has yet to be named, but will connect Malaysia to “ASEAN destinations and key cities in South Asia and Greater China, using a fleet of Boeing 737-800”.

The carrier says that in the longer term the subsidiary will be used to fly all of MAS’ current domestic and regional routes.

The news was confirmed at the unveiling of Malaysia Airlines’ business plan, with a “two-pronged business strategy focusing on recovery of the business and sustaining its growth to ensure that Malaysia Airlines realizes its vision to become the preferred premium carrier that is well-positioned for the coming consolidation of the Asian aviation market place”.

Measures include “shrinking its network, a relentless focus on costs and aggressive efforts to win back customers”. Among the routes that will be cut or suspended include Cape Town, Johannesburg and Buenos Aires.

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Report by Mark Caswell

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