NEWS SPECIAL REPORT
Malaysia Airlines
says its strategy to
revive its fortunes
is beginning to pay
off. Jennifer Morris
reports from a fam
trip to Langkawi
and Kuala Lumpur
Malaysia Airlines ‘on track
with business turnaround’
Malaysia Airlines has made a
quarterly profit for the first time
in six years and is expecting a
recovery in UK visitor numbers
to the country after a sharp
decline last year.
The airline wouldn’t reveal
details of its first-quarter results
but said it didn’t expect to post a
full-year profit until 2018.
Tourism Malaysia figures show
there was a drop from 446,000 UK
visitors in 2014 to 401,000 in 2015.
However, for 2016 the
flag‑carrier expects to see a
recovery “back towards the 2014
level” and is targeting refloating
Paul
Simmons:
‘Quarterly
profit is a
major
achieve-
ment’
20 travelweekly.co.uk 16 June 2016
A380 aircraft are
part of carrier’s fleet
“We’d like to rebrand
because we believe
the changes we’re
making deserve it”
or leaving government ownership
by 2020.
Two years on from aviation
tragedies that sent shockwaves
around the world, the airline
remains in the throes of a
three‑phase turnaround plan
due to run until 2018.
Flight MH370 from Kuala
Lumpur to Beijing disappeared
on March 8, 2014, while just four
months later flight MH17 was shot
down flying between Amsterdam
and the Malaysian capital.
Chief commercial officer Paul
Simmons said: “To rebuild it
takes a while. In certain markets
it’s pretty much back to where it
was, or even ahead. In the UK in
particular we need to carry on
with brand-building activity.”
Simmons said Malaysia Airlines
had moved past the “less pleasant”
part of the plan, having shed about
8,000 staff. He said there are no
plans to reduce the network, fleet
or staff further.
“If you think about what’s
happened to the airline in the past
two or three years – not only with
the tragedies but with the massive
downsizing and reshaping – to get
it to a profit in this quarter was a
major achievement,” said Simmons.
“We haven’t committed to
continually delivering annual
profit until 2018, so we’re on track.
“We’re now flying the routes
we want to fly with the aircraft we
want to fly and starting to rebuild
the brand as well.
“There’s a long way to go and
I have no misguided views of
optimism that we’re there yet, but
it’s nice to see now that we can
actually deliver the business plan.”
Simmons added: “We would
still like to rebrand because we
believe the service changes and
improvements we’re making
deserve a rebrand. Exactly when
we’re still looking at.”
He said a rebrand would not
necessarily mean a renaming.
Carrier leases two
A350s ahead of
network expansion
Malaysia Airlines is leasing
two new Airbus A350-900s to
complement an existing four
on order, as it seeks to reach a
“critical fleet size”.
Chief executive Christoph
Mueller said the additions
would allow standby aircraft
to undergo scheduled
maintenance, but would
also enable future network
expansion.
He added: “Technological
and innovative advancements
make flying this aircraft a real
pleasure and it will bring a
whole new experience to our
offerings, with the aircraft
able to operate non-stop from
Kuala Lumpur to London and
throughout Asia.”
Preparation for the
introduction of the new aircraft,
planned for late 2017, is ahead
of schedule.
Malaysia Airlines says
it actively assesses new
route opportunities on an
ongoing basis and is currently
evaluating the possibility of
serving “unique and new”
destinations with narrow-
body aircraft with long-range
capability.
Orangutan
in Sarawak
Airline plans to host 100
agents on fams this year
Malaysia Airlines has
“significantly increased” fam
trip opportunities, recognising
agents as “one of the best ways
to get the brand front of mind”.
It has taken 18 UK agents away
so far this year and will host at least
85 more by the end of the year.
“We’re going to go out of the
way to try and re-engage with
the trade,” said chief commercial
officer Paul Simmons.
“We’ll be seeking to get as many
of our trade colleagues over here
as we can to experience the airline
and the destination – to get it back
to being front of mind.”
Simmons said whether
consumers feel uncomfortable
flying with the airline or to the
destination is not something it
“empirically measures”.
“It is starting to break down
but one of the best ways to break
it down is for the agent to say
they know what it’s like because
they’ve been there,” he said. “And if
I’m getting people out there I need
to have good offers as well.”
As an incentive for agents,
until June 30 Malaysia Airlines is
AGENTS’ FAM
TRIP FEEDBACK
Malaysia Airlines recently
hosted 19 agents on a trip to
Kuala Lumpur and Langkawi
Kate Self, Travel
Counsellors
“What stands
out is Malaysia
Airlines’ service.
I can tell clients
the quality of
the aircraft is excellent and
Rainforest World
although we flew business, the
Music Festival economy class has one of the
best seat pitches in the sky.”
Carol Smith,
Co-operative
Personal Travel
Advisors
“In the past
couple of years
some clients
have been reluctant to fly
Malaysia Airlines. I can usually
MH370 disaster happened. change their mind about
“We’re doing our best “Clearly we have ongoing deep that and now feel even more
sympathy for the families and all confident of that having had
to get back to where
involved. In terms of the business such a good experience.”
we used to be – it’s all we can do is try and put our
where we need to be” best foot forward,” he said. Nick Harding-
“Although it is still in the news I McKay, Travel
think the resonance is potentially Designers
offering a £30 voucher for every dying down a bit. We’re doing our “This fam trip
first or business-class return level best to get back to where has been one
ticket sold and a £10 voucher we used to be and that’s not just of the best I’ve
for every economy-class ticket because we want to, it’s because been on. I liked
for travel up to December 8. it’s where we need to be.” the spaciousness of Malaysia
Vouchers can be claimed at ››Malaysia Airlines is giving away Airlines’ business class. It is
Malaysiaairlinesgiveaway.co.uk. places on a fam to the Rainforest good value with great service.”
Simmons said the airline World Music Festival in Borneo in
“cannot get away” from the fact the August: Competitions, page 42 Shannon
McCandlish,
Thomas Cook
MAS invests in its onboard experience “I couldn’t
believe how
Malaysia Airlines has spent an undisclosed sum as it seeks to improve luscious and
green Langkawi
customer experience across its fleet.
Four of 15 A330-300s are now equipped with new lie-flat business was. Malaysia is just fabulous.
class seats, with the rest due to be converted this year, while 18 new I’ll definitely feel more
premium economy seats have been installed on the A330 fleet. confident recommending it
A new ‘dine on demand’ service has been introduced for first and and I’ll arrange an evening at
business-class customers; a new premium economy class will be our branch to promote it.”
installed on the A380s this financial year; and the carrier is soon to
start rolling out Wi-Fi on its long-haul wide-body aircraft. ››Caught on Camera, page 44
16 June 2016 travelweekly.co.uk 21