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Wednesday 7 July 2021

Domestic flights: Should Malaysian Airlines follow Lufthansa?


Environmental buffs are forcing many airlines in Europe to replace short distance domestic flights that can be completed by bus/train within 2.5 hours with alternate service. France is in the forefront of this campaign. Surprisingly, Lufthansa has just joined in. In Malaysia too domestic air travel is somewhat close to bus/train ride in terms of time lapse. Should Malaysian Airlines rationalize domestic flights? 

In a recent article Tom Boon of Simple Flying has broken the news of Lufthansa replacing its shortest route with a bus service (here) as a business manoeuvre. Lufthansa offers many domestic services across Germany connecting major cities with both Frankfurt and Munich as hubs. Setting an example Lufthansa is ending its shortest route, connecting Nuremberg to Munich and replacing it with a bus service dubbed ‘Lufthansa Express Bus’ which will take two and a quarter hours to connect both cities. 

Malaysia Airlines which used to fly domestic flights to more than 30 destinations under her flag is now serving only 15 destinations after spinning off remaining destinations to its subsidiaries MASWings and FireFly. Based at KLIA it flies to domestic destinations including Alor Setar, Kota Bharu, Labuan, Miri, Sandakan and few others.

MASWings, primary subsidiary has its main hub at Kota Kinabalu International Airport offering domestic flights to destinations mainly within the Sabah and Sarawak states. Arguably MASWings has the biggest domestic route network in Malaysia and serves more than 20 destinations.

FireFly other subsidiary, based mainly at Sultan Abdul Aziz Shah Airport flies to eight destinations within Malaysia. It has second hub at Penang International Airport. Destinations include Johor Baru, Kuantan, Alor Setar and Langkawi.

While domestic flights have its attraction in Malaysia due to peninsular Malaysia being of narrow shape flying into Borneo where Sabah and Sarawak states are located becomes tantalizing. Moreover, domestic services are completed in much quicker time than bus/train in convenient ambience. But cost wise domestic flights are not cheaper.

As Malaysia intends to expand its road/rail network it would be a preferred manoeuvre to rationalize many of the flights and replace few of the  shortest distance services by using own branded buses. As a spin off benefit it would be good advertisement for Malaysian Airlines too.

 

Cheers! 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

 

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