Malaysia Airlines Potential Partner

In thr end of year 2011, Malaysia Airlines' new boss Mr Ahmad Jauhari had his own plan to save the carrier by reducing its loss. Malaysia Airlines reportedly loss RM 2.5 billion.. yeah we're talking billions. Under his own plan, he cancelled several profits route, including two routes to middle east (Dubai and Damman in Saudi Arabia) in order to reduce the loss and focus on the regional sectors. One of the main reason Malaysia Airlines lost to these destinations especially in Middle East, is due to presence of five carriers from Middle East. There are, Emirates, Qatar Airways, Etihad Airways, Gulf Air (suspended flight to KL) and Oman Air. These airlines are main competitors of Malaysia Airlines and succeed attracting passengers especially from Malaysia, Australia (direct fly to their respective hubs) and etc. Moreover their airlines offering highest quality inflight service in every class in low price [But in Malaysia Airlines offering 5 star inflight but the price is very high.] and their hubs, which are located between Europe and Australia and have very good connection instead.

What Malaysia Airlines should do?

• First, try focus in reducing loss as soon as possible
• Eliminate unnecessary things
• Reduce Cost
• Strengthen existing routes network and identify potential set up new destinations
• Win back customer
• Improve quality of service
• Motivate Staffs
• Strengthen existing partnership Airlines 

Malaysia Airlines - Etihad Airways Partnership

In order to reduce cost, Malaysia Airlines should had strong partnership with one of the Middle East Airlines, and suggest Etihad Airways is the best airlines to fit for this partnership. There many factors that this airlines will be strong partnership with Malaysia :-

1. Etihad Airways has code - share agreement with Malaysia Airlines. Malaysia airlines will carry EY passengers from KUL to Penang, Kuching, Kota Kinabalu Kuantan, Langkawi, Johor Bharu, Denpasar in Bali, Hong Kong, and Singapore.
2. Malaysia Airlines' Enrich has already  partnership in frequent flyer programme with Etihad's Guest. Give easy access for both loyalty passengers flying with the airlines' networks
3. As mentioned before, Etihad Airways operating from Abu Dhabi and has connecting to various destinations in Africa, Europe and west coast of North America.
4. Etihad Airways is the major stake of Air Berlin, the second largest airlines in Germany, and the most importantly, the future oneworld alliance member.
5. Etihad Airways has also partnership with American Airlines and S7 airlines of Russia which are also oneworld alliance partner.
6. Referring to the news, the airlines is looking partnership to Make Etihad Airways as the one of  the establish airlines in Middle East.

EY Connections (include + ORD - Chicago O'Hare)

I am hoping that the alliance between Malaysia Airlines with Etihad Airways, will help Malaysia Airlines to gain back profit and also will give benefit to passengers and both side.

Other than Etihad Airways, Malaysia Airlines need to consider to form strong with other airlines partner such as :

KLM, The Royal Dutch Airlines is the national carrier of the kingdom of Holland. This airlines has similarity in terms connections to the Malaysia Airlines. Like Malaysia Airlines, KLM serving has number of destinations around Europe especially in UKs, Western and Northern (Scandinavian) Europe. KLM and it's subsidiary KLM Cityhopper offering multiple flights in some sectors such as Amsterdam/Schiphol to Copenhangen/Kastrup serves forty direct flights [from Skyteam software as March 05, 2012]. Other than that, Malaysia Airlines and KLM code sharing together in routes such as Amsterdam - Kuala Lumpur. From Amsterdam, the KLM carry Malaysia Airlines' passengers to Helsinki, Stockholm, Copenhangen, and etc. While Malaysia Airlines also carry KLM's passenger from Kuala Lumpur hub to destinations in south east asia as well as to Australian and New Zealand cities. Amsterdam/Schiphol Airport, also has the good large number of flights to Northern American destinations. Other Malaysia Airlines and KLM has also partnership in Frequent - Flyer programme where Malaysia Airlines' Enrich and Air France - KLM's Flying Blue can earn points from both airlines.

Malaysia Airlines Connection

KLM Connection (1)

KLM Connection (2)

Cathay Pacific Airways, the Hong Kong based airlines, it's always known as good quality inflight service [same level quality with Malaysia Airlines]. Cathay Pacific is the Oneworld member. Cathay Pacific and Malaysia Airlines has been partnership  on routes such Kuala Lumpur  - Hong Kong - Kuala Lumpur and Hong Kong - Penang - Kuala Lumpur - Hong Kong [operated by Cathay Pacific]. Cathay Pacific has also good network especially destinations in West - Coast North America and Northern Asian. 

CX Connections

Other New Potential Partner Airlines

Qantas Airways, the national carrier airlines of Australia is of the potential partner of Malaysia Airlines.  As the 'Guru' of Malaysia Airlines to join Oneworld Alliances. The airlines has very connection within Australia and New Zealand. Hoping to see Qantas flying back to KLIA and codeshare with Malaysia Airlines to destinations in Australia and New Zealand. In order to make KLIA as the oneworld's hub, some Qantas (or BA) flights need to transfer from Singapore Changi airport. Malaysia Airlines will carry Qantas passengers flying to Northern Asian, Asean, Europe and Indian sub - continent destinations. Malaysia Airlines offers more European destinations compared to the Qantas.

 MH - QF Connections

The national carrier of Finland, Finnair which is Oneworld's member, is serving flights to several cities in Asian and North Malaysia. Malaysia Airlines should has code - share with Finnair, carry passengers from especially from Bangkok, Hong Kong and Singapore to Malaysia. From Singapore, Malaysia Airlines offering Finnair's passengers fly to Kuching, KL and Miri, from Bangkok to Kuala Lumpur and Hong - Kong to Kota Kinabalu.

 

Air Berlin, the second largest airlines in Germany and currently part of Etihad Airways. The airlines will join the oneworld alliance in just a few days. The airlines has networks mostly to Mediterranean destinations. It has two main hubs in Berlin (Tegel then Brandeburg in June 2012) and Düsseldorf. The airlines also is semi - low cost carrier and also offering long haul flights to Abu Dhabi, Bangkok, New Yoak and etc. Like it's parent company, Etihad Airways. It has potential for Malaysia Airline to form relationship with Airberlin. Air Berlin will help Malaysia Airlines' passengers transfer flight from Bangkok and Phuket to Düsseldorf which lies in Industrial area of North Rhine Westphalia. The new hubs of Air berlin in Berlin - Brandeburg, located at the heart of europe, which smooth connections from Asia to Scandinavian, Southern and Eastern Europe. Other than than, like other main German's airports, it also has the train station of ICE, which has extensive railroad within Germany and Europe. The Berlin - Brandenburg will become latest of Oneworld's new hub.

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