Airline News
Mueller seeks to end hierarchy at MAB as restructuring homes in on B737 pilots
October 9th 2015
In its latest move to shed excess capacity, Malaysia Airlines Berhad (MAB) has plans to offer 100 to 120 B737-800 pilots on secondment to interested airlines from next year. Read More » If the plan does not materialize, the company would offer pilots either two years leave without pay or a 15-day work month at half salary, Aviation International News (AIN) has reported.
According to an official at the carrier's flight operations centre in Kuala Lumpur, the excess crew results from a reduction of MAB’s B737 network that started in late August and saw MAB cancel operations to Brisbane, Cairns, Male and Kochi, as well as significant frequency reductions in other markets. The airline plans more cutbacks in the coming months “where necessary” as it faces stiff competition on domestic and regional routes from LCCs, Malindo Air, AirAsia and full service carriers.
In August, MAB arranged to send approximately 70 B777 pilots to Korean Air on temporary assignment, however, that plan met with opposition from the Korean Air’s pilots union, despite crew shortages at the Korean carrier.
MAB operates 56 B737-800s, of which 41 are leased. It plans to reduce the B737 fleet to 35 by the end of next year to cut out more operating costs. The airline also has cancelled options for ten additional B737s.
MAB’s chief operating officer, former Ryanair executive Peter Bellew, said the carrier must improve its aircraft utilisation. “If you adopt industry-leading or industry-standard procedures, you can increase the utilization of the aircraft significantly. Then, you can grow without buying more aircraft because you have more time available on the aircraft to operate services.”
MAB CEO, Christoph Mueller, and Bellew, said MAB will improve its on-board experience in the next 18 months to better compete with rivals. The airline is looking at newer entertainment systems and lounges, focusing less on the Kangaroo route and more on Asia.
