As I indicated in an earlier article, there are sturdy rumours of a “merger” or “tie-up” between Australian service Qantas and Malaysian Airlines (MAS). Other than being one in all Malaysian Airlines’ most profitable routes, there was a continuing fear of the undermining of KLIA as a hub, since Changi is well the more most well-liked hub by both 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 a lot of international airlines, together with Qantas. A well established base in the yard of arch-rival Singapore Airlines, while still maintaining its presence at Changi will go well with the Qantas/Jetstar group just nicely, affording them and potential associate, Malaysian Airlines, extra choices, with Qantas still sustaining presence at Changi. Regardless of this, Jala recognizes, MAS will never meet the price base of AirAsia, and has moved the airline up the worth chain, specializing in the upper end of the market, as an alternative. After years of losses, government intervention and its resultant inefficiencies, Jala has moved MAS in to profitability, for the last 3 years.

On December 1, the 70 year outdated duopoly of Malaysian Airlines and Singapore Airlines on the lucrative Singapore-Kuala Lumpur sector was opened up, after 5 years of lobbying by the LCCs of both nations, but Malaysia predominantly. Kuala Lumpur International Airport (KLIA) has much to supply. Because of the fast rising AirAsia, KLIA is now making a comeback, as a low cost hub, however we should keep in mind, the airport still has high end services as well. Jetstar has a fleet of six Airbus A330’s, two of which fly Australia to Japan (service attributable to terminate in December 2008), and may easily use KLIA as a base to expand the Qantas model in to India, south-east Asia, the middle east, Europe, and especially the United Kingdom, in response to the challenges of the ever busy AirAsia who is making KLIA as a low cost hub for Australians, with its upcoming UK service.

American Airlines Flights

Jetstar Asia already flies to KLIA, and Jetstar used to fly the Sydney-KL route, however has withdrawn quickly during the economic decelerate. While Qantas withdrew from KLIA, on account of low yields, and preferring to build economies of scale at Singapore, it has two low value subsidiaries JetStar and Singapore based JetStar Asia. KLIA is also a spacious airport, and with its deliberate growth, will supply considerable progress alternatives to any global scale airline. Unlike the talks with British Airways, in case of Malaysian Airlines, the Malaysian government are critical and any deal may have their blessing. The current failure of the merger talks with British Airways highlights Joyce’s desires. Jetstar Asia has only a narrow body fleet, however is already reaping benefits from the latest KL-Singapore route liberalisation. Garuda, Thai, Philippines, Eva, China Air, Air China, or any of the Taiwanese or Chinese language airlines are too small or don’t offer sufficient economic benefits to Qantas. So it would behoove Qantas to proceed. Not only do I feel that this tie-up will happen, I strongly consider that it’ll lead to positive results for all the gamers, not simply the airlines.

A tie-up with both Singapore Airlines or Cathay Pacific or Japan Airlines. In the medium time period, to overcome the restrictive regulatory framework in South-East Asia, I count on that Qantas and Malaysian Airlines must enter in to some time of cross-holding and in addition for Qantas buy a significant minority share in Malaysian. Does this imply it’s best to by no means consider a flight on one of these airlines? Bangalore Aviation, an unbiased aviation, airports, airlines, journey news and opinions weblog based out of Bangalore, India, with real time Bangalore flight arrival & departure info. A deal, if consummated, with help re-define the south-east Asian skies, and benefit not just the airlines, but in addition KLIA. The poor situation at KLIA was further aggravated by its personal authorities. As soon as 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, due to the “Kangaroo Run”, and has a decent cash balance sitting prepared, ought to a deal with MAS come about. Driven by its formidable low value provider (LCC) competitor AirAsia, and Jala, MAS has undertaken ruthless value slicing and route rationalization.