MAS CEO shuts down talk of aircraft sales

CHRISTOPH Mueller assumed the role of managing director and group CEO of Malaysia Airlines (MAS) on May 1 and immediately killed speculation that the airline will be offering some of its fleet for sale or lease.

In a statement issued by MAS yesterday, Mueller said: “It is too premature when nothing concrete has been achieved. MAS needs to operate and utilise its fleet at an optimum level besides maximising revenue on the routes it flies. The market needs to give MAS room to explore various options in determining the most viable strategy.”

The airline will explore fleet options to enhance the viability of longhaul sectors as one way to improve business. The Malaysian media last month reported that MAS will suspend its flights between Kuala Lumpur and Frankfurt from May 29.

A report from Bernama quoted MAS Frankfurt director, David Rajkumar Subramaniam, as saying that MAS had revised its network plan with a more regional focus, and strong global connectivity through the oneworld alliance.

But others believe MAS’ decision to stop the route also has to do with competition from Lufthansa, which had increased its Kuala Lumpur-Frankfurt flights from five times weekly to seven times weekly for the Summer season beginning March 30.

Lufthansa general manager Malaysia, Paurus H Nekoo, told TTG Asia e-Daily the move was in response to strong customer demand and that the German carrier will introduce the Premium Economy Class product on this route from June 3 to stimulate further demand.

Arokia Das, senior manager at Luxury Tours Malaysia, said: “With MAS pulling out, we are now dependent on a foreign carrier. With Lufthansa having a monopoly on the route, we can expect fares to increase.”

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