As I indicated in an earlier article, there are strong rumours of a “merger” or “tie-up” between Australian carrier Qantas and Malaysian Airlines (MAS). Aside from being one in all Malaysian Airlines‘ most worthwhile routes, there was a constant concern of the undermining of KLIA as a hub, since Changi is definitely the more preferred hub by each airlines and passengers. The airport was built and promoted by former Malaysian Prime Minister Dr. Mahathir Mohammed, as a competitor to Singapore’s famous Changi Airport, a base for many international airlines, including Qantas. A properly established base in the yard of arch-rival Singapore Airlines – official source – , whereas nonetheless maintaining its presence at Changi will suit the Qantas/Jetstar group simply nicely, affording them and potential associate, Malaysian Airlines, more options, with Qantas nonetheless maintaining presence at Changi. Regardless of this, Jala acknowledges, MAS will never meet the price base of AirAsia, and has moved the airline up the worth chain, specializing in the upper finish of the market, instead. After years of losses, authorities intervention and its resultant inefficiencies, Jala has moved MAS in to profitability, for the final three years.

On December 1, the 70 yr old duopoly of Malaysian Airlines and Singapore Airlines on the profitable Singapore-Kuala Lumpur sector was opened up, after 5 years of lobbying by the LCCs of both countries, but Malaysia predominantly. Kuala Lumpur International Airport (KLIA) has much to offer. Due to the fast growing AirAsia, KLIA is now making a comeback, as a low price hub, however we must always keep in thoughts, the airport still has high end services as effectively. Jetstar has a fleet of six Airbus A330’s, two of which fly Australia to Japan (service because of terminate in December 2008), and might easily use KLIA as a base to broaden the Qantas model in to India, south-east Asia, the center east, Europe, and especially the United Kingdom, in response to the challenges of the ever busy AirAsia who’s making KLIA as a low cost hub for Australians, with its upcoming UK service.

The World’s Most Unusual Malaysian Airlines

Jetstar Asia already flies to KLIA, and Jetstar used to fly the Sydney-KL route, but has withdrawn briefly in the course of the economic decelerate. Whereas Qantas withdrew from KLIA, on account of low yields, and preferring to construct economies of scale at Singapore, it has two low price subsidiaries JetStar and Singapore based JetStar Asia. KLIA is also a spacious airport, and with its deliberate expansion, will offer considerable progress opportunities to any global scale airline. Not like the talks with British Airways, in case of Malaysian Airlines, the Malaysian authorities are severe and any deal may have their blessing. The current failure of the merger talks with British Airways highlights Joyce’s needs. Jetstar Asia has only a slender physique fleet, however is already reaping benefits from the recent KL-Singapore route liberalisation. Garuda, Thai, Philippines, Eva, China Air, Air China, or any of the Taiwanese or Chinese airlines are too small or do not provide sufficient financial advantages to Qantas. So it will behoove Qantas to proceed. Not only do I feel that this tie-up will happen, I strongly consider that it will end in positive results for all of the gamers, not simply the airlines.

A tie-up with either Singapore Airlines or Cathay Pacific or Japan Airlines. In the medium term, to beat the restrictive regulatory framework in South-East Asia, I expect that Qantas and Malaysian Airlines should enter in to a while of cross-holding and also for Qantas purchase a big minority share in Malaysian. Does this mean you should never consider a flight on one of those airlines? Bangalore Aviation, an impartial aviation, airports, airlines, journey information and opinions weblog primarily based out of Bangalore, India, with actual time Bangalore flight arrival & departure info. A deal, if consummated, with help re-outline the south-east Asian skies, and benefit not simply the airlines, but additionally KLIA. The poor scenario at KLIA was additional aggravated by its personal government. Once Jetstar receives its Boeing 787 Dreamliners, hopefully in 2010, the KLIA base will blossom as an alternate “Kangaroo run” route. Financially, Qantas has been in good profit for a few years, thanks to the “Kangaroo Run”, and has a decent cash stability sitting ready, should a deal with MAS come about. Pushed by its formidable low price service (LCC) competitor AirAsia, and Jala, MAS has undertaken ruthless price chopping and route rationalization.