Open Skies will benefit Singapore more. It does not take a rocket scientist to tell you that and Idris Jala is not a rocket scientist. But he is smart. If the Government goes ahead and "free" the Kuala Lumpur-Singapore route ahead of Asean's agreed time line of 2008, the one who gains is Singapore. Not Malaysia.
Malaysia will be the loser.
Why is it I am not surprised anymore? [Read the remarks by the Malaysia Airlines boss here].
Sorry Idris Jala, I don't agree with u . I actually support liberalising the air route between malaysia and singapore and also between malaysia and other ASEAN nations. I am in the opinion that MAS is just afraid of competition.
ReplyDeleteMAS should be allowed to raise their fares and in return they should improved on their services like SIA in Singapore.
By having an open sky policies between themselves, ASEAN nations could help promote trade as well as tourism among it's member nations.
There are many benefit for open sky policy not only on the malaysia-singapore route but between all ASEAN mations too. MAS should not be afraid of competition but strive to improve to be better than their competition. I hope MAS will make Malaysian proud of our national airlines just as Singaporean are proud of their airlines.
Mohd Nor Abdul Manaf
Chairman,
Mohd Nor & Partners Sdn Bhd
Registered valuer & Property Manager
Idris Jala and MAS should not be afraid of competition. Opening up before 2008? What's the difference? Its only a year away.
ReplyDeleteMAS and Jala must work harder to make the airline competitive, period. If you cannot compete with the big boys in the international arena, then you have no reason to be there. You will fail.
We must stop this 'protection' mentality that is so prevalent in 'Semua Bolehland'. We are so entrenched with this that we need crutches all the time, just like the many contractors depending on government handouts.
Stop complaining and attacking Singapore for our problems, our inefficiencies and our 'cannot dos'. We must look at and blame ourselves.
If Tony Fernandez feels he can profit from the opening up of the KL-Singapore route, then there is no reason for MAS to feel so insecure. Stop being a cry-baby. You embarass and belittle us.
En Mohd Nor,
ReplyDeleteI suppose everyone is entitled to their opinions.
Having been in the Airline industry, and MAS having made itself my no 1, most hated airline, I would like to state that Idris has done his homework well.
Open skies, here will have Malaysia and Singapore agreeing to 'all the freedom of Air'. This wil translate into passenger traffic without any restrictions as opposed to waht is status quo.
KLIA simply does not have the kind of connection outbound internationally, hence those intending to get connection without restriction will most likely still opt for Changi.
However, with that you will still gain from as witht he lifting of these restrictions, KLIA will benefot from thos who intend to use Malaysia as their stopover.
MAS in the 70s and 80s, even up to the 90s had good stopover programs.
Maybe its time to leverage on it again. Malaysia still has a lot to offer. However, our friends in power have yet to wake up from their long slumber.
A former Malaysia Airlines employee
Tony Yew a.k.a alliedmartster
www.muststopthis.blogspot.com
p.s. whichever the case MAS still has a discriminatory policy.
Airline landing rights are in a way similar to trading market access. I'm generally in favour of freer trade, and I have openly supported the FTA with the US. Free Trade is mutually beneficial when both parties can bring something useful to the table.
ReplyDeleteOn "open skies" with Singapore, I'm not so sure.
Singapore basically has one airport, with a domestic travel market no bigger than, say the Klang valley. Any SIA destination is automatically an international flight. Its obvious that Singapore stands to benefit from open access to the Malaysian market.
What does Malaysia stand to gain from it ? Are there any other Malaysia-Singapore destinations other than KUL-SIN which MAS/AirAsia has demand exceeding supply ? I doubt it.
Any 3rd Party international destinations which MAS can serve better by flying through Changi rather than direct from KLIA ?
Any 3rd Party International destinations which SIA can serve better by stopping over in KL ? I don't know, but I'm sure MAS can do the research.
I won't jump to conclusions either way. MAS should do its homework carefully and make its case.
I have many professional dealings and negotiations with the guys down-south. They are very smart, very well trained, very "kiasu". I think Malaysians can be just as smart, well-trained but too often we carelessly give away our advantages. Too often we don't make best use of the talents and brains of ALL Malaysians.
Often, my very bright Southern counterpart is actually a Malaysian citizen....
Bro Rocky,
ReplyDeleteSOrry I am touching on a different subject: Air Asia.
Recently Air Asia plane crahsed in KLIA and we do not see a word about it in allthe nationla papers. Don't tell me that Tony Fernandez was able to buy up all the ediotrs of our national paress?? Does the news about Air Asia plane crashed threaten national secuirity or the security of the boy at Tingkat Empat????
Idris Jala has earned the right for a little respite from nay-sayers.
ReplyDeleteNot many had confidence in him nor gave encouragement when he took over the hot seat to turn around MAS.
He has nursed the national airline back into profits and I'm certain he's aware of the 'open sky' timeline for next year, hence, will formulate a strategy to suit MAS's future.
Stick to the original game-plan and, in the meantime, enhance returns for MAS's shareholders.
Idris Jala is not a rocket scientist and definitely not an 'air-head' either.
Sometimes, getting ahead does not mean being first off the block.
Look at the stats.
ReplyDeleteChangi Airport is served by 83 airlines offering 4,000 weekly flights to more than 180 cities in 57 countries. It handled 35 million passengers in 2006. When its Terminal 3 opens in 2008, Changi will have an annual handling capacity of 64 million passengers.
Whereas, according to Msia Airports, KLIA handled 24.1 million passengers in 2006. And total passenger traffic for ALL the 39 airports in Msia is expected to grow to 45.5 million this year from 42.5 million in 2006.
KLIA simply cannot compete with Changi in terms of connectivity and passenger numbers. And this is where MAS, Msia Airports and the Msian govt are all to blame.
Idris Jala should concentrate MAS as a full-service premium airline if the KUL-SIN route is opened up to the low-cost carriers, with fares to match. And he should focus on feeding more passengers from the region into KLIA to fly on MAS's long-haul routes to Australia, UK/Europe and North America and within the region to the high-growth markets of China and India.
If MAS had to loose... its because the airline is not run well by the management...period. Had nothing to do with open skies or whatever. What do you expect from Malaysian companies that always depend on Government to rescue them.
ReplyDeletethe fact that MAS is in the black is becos all the planes were sold to PMB and then leased back to MAS under the Wide Asset Unbundling exercise. It's a nice name for government-bail-out-MAS-with-our-money.
ReplyDeleteI thought your Majulah Singapura sequel has ended.
ReplyDeleteWhat happened to that Pantai deal in the series?
Long live "Majulah Singapura" !.
anon 3.15pm, you are bothering on rumour mongering.
ReplyDeleteReally. And you are saying this because you have?
On first look, Jalal seems to have done some neat turnaround. But Jalal and CEOs, you can have the best brains to aid you in your planning but if your people dont work your plans its like most govt. departments. My message is: Take care of your employees, even the janitor. You need to make it such that your people LOVE come to work. And when they come to work they bring their hearts to work and not leave it at the car park. Jalal must take a relook at some of your HR policies. How the Union allowed these discrimatory policies into the CA is an enigma. Work together, management and union to make MAS a conducive work-place and thence apply to win Hewitts' Top Employer of the Year.
ReplyDeletehttp://www.todayonline.com/articles/174145print.asp
ReplyDeleteThis story was printed from TODAYonline
Open skies but some doors are closed
Opening of S'pore, Malaysia air routes will impact Asean's 'open skies' regimen
Tuesday • February 27, 2007
Liang Dingzi
news@mediacorp.com.sg
THE recent announcement by Singapore and Malaysia to expand their air services agreement once again caused euphoria over the possibility of opening the lucrative Singapore-Kuala Lumpur (KL) route to budget carriers like AirAsia and Tiger Airways.
But if history were any indication of what to expect, it would be prudent not to be overly optimistic until some definite plans follow the announcement. Even to achieve complete liberalisation by the end of the year is ambitious.
The road ahead is fraught with differences that need to be ironed out, among them perceived revenue and opportunity imbalances, and compensatory trade-off for Malaysia Airlines (MAS) to accede to increased competition on the route.
Until now, MAS has been seen as the biggest obstacle in the negotiations. AirAsia has already said it would operate 22 flights a day between Singapore and KL. While prices that it said it would offer — as low as 70 per cent below what MAS and Singapore Airlines (SIA) currently charge — may be good news for the consumers, this might even throw a spanner in the works.
This price reduction will raise the resistance by MAS which, along with SIA, will not only lose some of the business to the new competition but also be forced to reduce current prices to retain the rest of it.
Both countries have said the expanded agreement will cover not just the capital cities but other ports of call as well. If this suggests that the Singapore-KL concession may take a backseat until some of the secondary points are being served as well, the agreement may then turn out to be more on paper than in reality.
It is unlikely that such other points — perhaps besides Penang, Kota Kinabalu and Kuching — will attract the same enthusiasm, considering their limited markets and, for West Malaysia towns, their proximity to KL and their accessibility by road and rail.
In fact, long before budget travel took off, some small carriers had tried on a limited scale and had failed.
For now, we can only in good faith applaud yet another encore of the expressed intention to open up the skies between the two countries. The announcement is only as good as the progress, if any, in the months ahead.
But what is significant is the timing of the overture, coming ahead of the planned Asean "open skies" regimen set for end 2008. If any good will come out of it, it is the much needed impetus to realise a regional ambition.
Until today, there has been little indication of a certainty that this will happen, apart from the announced ministerial intent. The absence of details on its implementation — which is likely to be riddled with even more hard bargaining, considering the wide economic disparity within the region — has already spawned scepticism.
It is only natural that Malaysia and Singapore — whose national airlines are the region's most reputable international carriers — should spearhead the initiative. Besides, they — more than the other countries — have long been ready to extend their boundaries.
The geographical dispersion of Asean nations with their large populations provides great potential for the growth of air travel when, fuelled by competition, it becomes not only affordable but also efficient. An "open skies" regimen may sprout a few more carriers and encourage others to spread their wings further. Or, it may lead to a consolidation of like-minded carriers to pool their resources, take advantage of each other's strength and expand networks collectively.
In either scenario, the region is headed for growth. The potential is not limited to internally-driven growth, but also growth brought about by the international connections of the region's major airlines.
Geographically, airports such as Singapore's Changi, Malaysia's Kuala Lumpur International and Bangkok's Suvarnabhumi continue to be major hubs for cross-global travel. The potential of the hub-and-spoke effects in a liberal regimen is tremendous.
A thriving aviation industry will fuel the growth of related and specialised industries, such as tourism, hospitality and healthcare. The Asean "open skies" regimen will open the doors for regional cooperation in many other areas besides aviation. Tourism, for example, can be promoted as an Asean product.
Until then, it is fair to assume that the Asean "open skies" agreement will be paced by how quickly Singapore and Malaysia move towards opening their skies between them as the region's forerunner, and the architecture of the regional regimen will be largely influenced by the outcome of that bilateral cooperation. If the Singapore-KL route continues to remain a barrier to complete liberalisation, the Asean outcome — if at all it materialises as planned — will be a similar scrambled plate of token, with limited benefits and a sprinkling of eternal hope.
The writer, a Singaporean management consultant, is retired from the aviation industry.
This story was printed from TODAYonline
ReplyDeleteOpen skies but some doors are closed
Opening of S'pore, Malaysia air routes will impact Asean's 'open skies' regimen
Tuesday • February 27, 2007
Liang Dingzi
news@mediacorp.com.sg
THE recent announcement by Singapore and Malaysia to expand their air services agreement once again caused euphoria over the possibility of opening the lucrative Singapore-Kuala Lumpur (KL) route to budget carriers like AirAsia and Tiger Airways.
But if history were any indication of what to expect, it would be prudent not to be overly optimistic until some definite plans follow the announcement. Even to achieve complete liberalisation by the end of the year is ambitious.
The road ahead is fraught with differences that need to be ironed out, among them perceived revenue and opportunity imbalances, and compensatory trade-off for Malaysia Airlines (MAS) to accede to increased competition on the route.
Until now, MAS has been seen as the biggest obstacle in the negotiations. AirAsia has already said it would operate 22 flights a day between Singapore and KL. While prices that it said it would offer — as low as 70 per cent below what MAS and Singapore Airlines (SIA) currently charge — may be good news for the consumers, this might even throw a spanner in the works.
This price reduction will raise the resistance by MAS which, along with SIA, will not only lose some of the business to the new competition but also be forced to reduce current prices to retain the rest of it.
Both countries have said the expanded agreement will cover not just the capital cities but other ports of call as well. If this suggests that the Singapore-KL concession may take a backseat until some of the secondary points are being served as well, the agreement may then turn out to be more on paper than in reality.
It is unlikely that such other points — perhaps besides Penang, Kota Kinabalu and Kuching — will attract the same enthusiasm, considering their limited markets and, for West Malaysia towns, their proximity to KL and their accessibility by road and rail.
In fact, long before budget travel took off, some small carriers had tried on a limited scale and had failed.
For now, we can only in good faith applaud yet another encore of the expressed intention to open up the skies between the two countries. The announcement is only as good as the progress, if any, in the months ahead.
But what is significant is the timing of the overture, coming ahead of the planned Asean "open skies" regimen set for end 2008. If any good will come out of it, it is the much needed impetus to realise a regional ambition.
Until today, there has been little indication of a certainty that this will happen, apart from the announced ministerial intent. The absence of details on its implementation — which is likely to be riddled with even more hard bargaining, considering the wide economic disparity within the region — has already spawned scepticism.
It is only natural that Malaysia and Singapore — whose national airlines are the region's most reputable international carriers — should spearhead the initiative. Besides, they — more than the other countries — have long been ready to extend their boundaries.
The geographical dispersion of Asean nations with their large populations provides great potential for the growth of air travel when, fuelled by competition, it becomes not only affordable but also efficient. An "open skies" regimen may sprout a few more carriers and encourage others to spread their wings further. Or, it may lead to a consolidation of like-minded carriers to pool their resources, take advantage of each other's strength and expand networks collectively.
In either scenario, the region is headed for growth. The potential is not limited to internally-driven growth, but also growth brought about by the international connections of the region's major airlines.
Geographically, airports such as Singapore's Changi, Malaysia's Kuala Lumpur International and Bangkok's Suvarnabhumi continue to be major hubs for cross-global travel. The potential of the hub-and-spoke effects in a liberal regimen is tremendous.
A thriving aviation industry will fuel the growth of related and specialised industries, such as tourism, hospitality and healthcare. The Asean "open skies" regimen will open the doors for regional cooperation in many other areas besides aviation. Tourism, for example, can be promoted as an Asean product.
Until then, it is fair to assume that the Asean "open skies" agreement will be paced by how quickly Singapore and Malaysia move towards opening their skies between them as the region's forerunner, and the architecture of the regional regimen will be largely influenced by the outcome of that bilateral cooperation. If the Singapore-KL route continues to remain a barrier to complete liberalisation, the Asean outcome — if at all it materialises as planned — will be a similar scrambled plate of token, with limited benefits and a sprinkling of eternal hope.
The writer, a Singaporean management consultant, is retired from the aviation industry.
Aiyah, this Liang fellow is just regurgitating what is commonly known in the aviation industry.
ReplyDeleteHow do you equate Spore (a city-state) with Msia (which is geographically much bigger).
Of course, Spore will want access to all the profitable routes in Msia - KL, Penang, KK and Kuching. Why? To bring passengers from these Msian airports to catch connecting flights from Changi, thus further confirming Changi's regional air hub status.
Do you think that Spore wants to encourage tourist and business traffic flows to KL, Penang, KK and Kuching? Dream on!
If I were in Idris Jala's position, I'd unilaterally pull out of the KL-Spore route and let AirAsia dominate the sector. SIA has no hope of matching the fares that AirAsia can charge on this sector, and there is only a limited amount of business traffic that would be prepared to pay to fly first class on SIA for a 45-minute flight.
Let AirAsia funnel in the passengers from Spore (and from around the region) into KLIA and book them onwards on either AirAsia X or MAS for the long-haul and regional destinations. That will help KLIA build up its passenger volumes and encourage other airlines that now don't fly to KLIA to come in and get a slice of the action.
That's win-win for both MAS and SIA, but only if Idris Jala doesn't let his ego stand in the way of sound business decisions!
Oops, blooper! I meant to write: "That's win-win for both MAS and AirAsia....."
ReplyDeleteIsn't ironic that AirAsia and SIA couldn't wait for the skies to be opened while MAS wanted it closed as long as possible?
ReplyDeleteIf Tony Fernandez can offer 22 flights a day from Changi to KL (i.e. every hour one flight), Air Asia would be my favourite airline. :)
ReplyDelete>>>>If the Government goes ahead and "free" the Kuala Lumpur-Singapore route ahead of Asean's agreed time line of 2008, the one who gains is Singapore. Not Malaysia.
ReplyDeleteMalaysia will be the loser.>>>>
Rubbish!
Just like Proton, MAS does not automatically equal Malaysia.
I agree... MAS and KLIA will lose revenue and passengers to SIA and Changi.
But as I said, MAS (and KLIA) are not Malaysia.
Malaysia doesn't lose. In fact, Malaysians gain. We pay less for flights, we have more disposable income to spend. We fly more, more economic activity is generated, both locally and abroad.
If you ask me, GLCs like MAS and Proton are parasites sucking the blood of Malaysians. They have been holding back the air travel, cargo, tourism and countless other industries by diverting funds into vested interests. And let's not kid ourselves that those vested interests represent the interests of the Malaysian public. By removing these GLCs, Malaysians actually stand to gain tremendously.
seantang
ReplyDeleteu r kidding, right?
If u have even an ounce of national pride, u would want KLIA to grow into a regional air hub.
Why should Changi profit at the expense of KLIA when the Msian domestic market is so much larger than Spore's?
Or don't u believe that the Spore govt's paramount objective is to make Changi the undisputed air hub in the region? This has been stated in no uncertain terms by the Old Man himself.
So, why should the Msia govt roll over and surrender? Fight the good fight is what I say, and that means using every competitive advantage the country has.
And not to surrender to the siren song of "open skies" without taking a long, hard look at exactly what the costs and benefits are.