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MAB confirms seven local crew bases, Qantas not interested in MAB

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December 11th 2015

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Malaysia Airlines Berhad (MAB) has said it would reposition 18 B737-800s to seven new local crew bases across Peninsular Malaysia, Sabah and Sarawak to decentralize its short-haul operations away from its Kuala Lumpur hub. Read More »

As part of its restructuring, MAB said bases would be established in Kota Kinabalu, Kuching, Miri, Labuan, Kota Bharu, Penang and Johor Bahru by March. The move is expected to slash crew costs by reducing the need to overnight in regional cities and boost B737 utilization rates by 15% to 20%.

"The move will improve connectivity and service quality on the domestic network and emphasizes the airline’s commitment to the respective states, boosting local economies and fostering inbound tourism," MAB said.

The carrier's turnaround plan, spearheaded by Malaysian sovereign wealth fund, Khazanah Nasional, has placed greater emphasis on MAB reasserting its flag carrier position in domestic and regional markets, both of which hinge on its fleet of 56 B737-800s. According to CAPA, MAB is renegotiating its B737 leasing rates and has the option, under the MAS Act, to cancel any it does not require.

On the long-haul front, MAB last week signed a strategic partnership deal with the UAE’s Emirates Airline, which will see it terminate its routes to Amsterdam and Paris, after having returned eight surplus B777s to leasing companies.

MAB CEO, Christoph Mueller said the partnership “paved the way to an integrated customer proposition offering for both airlines”. The airlines plan to offer passengers reciprocal frequent flyer benefits. “The improved connectivity will allow Malaysia Airlines customers to reach up to 38 destinations in Europe on a daily and even a double daily basis to key European cities, including Zurich, Rome, Munich, Frankfurt, Madrid and Barcelona,” Mueller said. “This partnership gives our customers access to a dramatically expanded range of travel options.”

Meanwhile, Emirates alliance partner, Qantas Airways, has said it has no plans to deepen its relationship with fellow oneworld member MAB, despite the MAB/Emirates tie-up. "We are always looking at opportunities with our code-share partners, but there are no immediate plans to change our relationship with MAB or fly into Kuala Lumpur at this stage," Qantas said on Monday.

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