Monday, 5 December 2016
PETALING JAYA: Malaysia Airlines Bhd (MAS) has benefitted from a combination of aggressive marketing strategy and the adjustment in passenger service charges (PSC) for flights within the Asean region.
Forward bookings at MAS for the next six months are 50% more than a year ago and the airline has had tremendous group booking enquiries from the Asean region, spiking by almost 400%.
The new PSC charges come into effect on Jan 1, with uniform charges for all Asean destinations at RM35 in both the KL International Airport (KLIA) and KLIA2.
It replaces the old structure where it is RM65 for all international travels, which includes Asean, at KLIA and RM32 in KLIA2, which is positioned as an airport for low-cost carriers.
Although the forward bookings are encouraging, yields are depressed, a worldwide conundrum given the intense competition. The weaker ringgit will have an impact on the airline, as will the stronger US dollar, as most of its costs are in dollars.
MAS’ yields for the third quarter ended Sept 30, 2016 was 21.75 sen, down from 22.5 sen in the second quarter, despite passenger revenues for the third quarter rising 12% over the second quarter, led by aggressive sales campaigns.
The yield has a direct impact on the bottom line of the airline operations.
Traditionally, the fourth quarter is the best quarter for airlines, but the ringgit’s weakness has been intense after Nov 8.
Source by: Internet