ashkale

https://www.facebook.com/notes/malay...96105483835983

Malaysia Airlines Route Rationalisation: Suspension of KL - Los Angeles route
January 27, 2014 at 3:23pm
27 January 2014, Subang: Malaysia Airlines will be suspending its flights into Los Angeles following a route rationalisation exercise to stem losses. The route rationalization exercise takes effect on 30th April 2014.

According to Malaysia Airlines Group Chief Executive Officer, Ahmad Jauhari Yahya said, "Whilst Malaysia Airlines has a long history in Los Angeles, this route is no longer economically viable. The factors contributing to this negative situation today include over capacity and competition resulting in lower yields, high cost of operating the B777 aircraft, and pressure from continued increases in fuel costs. These are adding further pressure to the expenses of Malaysia Airlines group, which we are continuously evaluating."

This route rationalisation is expected to have minimal impact on Malaysia's position as a top tourist destination in Asia as the national carrier will work aggressively with its code share and oneworld partners.

Malaysia Airlines continues to promote connectivity between Malaysia, United States of America and other key international destinations as well as contribute towards the overall efforts by the various authorities to increase tourist arrivals to Malaysia. This will allow Malaysia Airlines to better manage and optimise resources beyond existing gateways in Asia and Europe.

Currently, the airline is offering seamless one-stop air connectivity between Kuala Lumpur and several major cities in the United States of America (USA) through a code-share arrangement with American Airlines and Japan Airlines, its partner airlines in the oneworld alliance. Among the connection is between Kuala Lumpur and the US Cities of Atlanta, Boston, Washington, Houston,Minneapolis, Portland, Seattle, San Francisco, Las Vegas, San Diego, Honolulu and Raleigh via Europe and Japan.

Concurrently, Malaysia Airlines will focus on Asia where the demand outlook is strong, fuelled by a growing middle class and increased global and intra-regional trade. The national carrier will thus increase frequencies to key regional cities to benefit from the strong growth in regional demand.

The impact of the above rationalisation on Malaysia Airlines’ cargo operations will be minimal as the national carrier continues to maintain its key cargo destinations in the United States.

Malaysia Airlines regrets for the inconvenience to passengers as a result of these changes and assures that it will honour all forward bookings ticketed to date on the affected route. The Company will make alternative carrier arrangements to ensure minimum discomfort to passengers.

eminere

Always a sad day when routes have to be dropped due to cost-cutting/poor demand.

dll

I always wondered how this route was viable. They route through NRT with a pretty average J class seat. It's not a daily flight and flight times headed west from LAX put you into KUL at an odd hour.

Seemed like a bad idea from the start but will miss the Oneworld redemption option!

bzcat

Well, you have to understand how the NRT stop over was justified. It was more viable than before when it operated via TPE, where average fare was even lower, in part because MH was under cutting CI, BR, and SQ to maintain load factor between LAX and TPE.

MH used to operate KUL-TPE-LAX with a 744 daily, then dropped down to 6x weekly, then 5x weekly, then 4x weekly, then down gauged to 77E, then switched to KUL-NRT-LAX, and now finally gone. At one point in the mid to late 2000s, there were more seats between LAX and TPE than any other ex-LAX international destinations (!) with 6x daily year-round 744 service and up to 8x daily seasonally. It was a bloodbath of epic proportion.

The idea that MH should fly to all 6 continents and incur pointless losses for political prestige back home has always been absurd. Especially so now that they are in OneWorld. There is no natural traffic between LAX and KUL... it's one of those draw lines on the map fantasy airline route planning decision that lead to its existence in the first place, curtsey of Taiwanese Govt's generous 5th freedom gift.

coolfish1103

They should have just stayed on KUL-TPE-LAX v.v. cause customers will move to them after they join oneworld. Competing on KUL-NRT-LAX v.v. against it's own alliance member like JAL and AA makes no sense at all (plus there are more carriers flying this route). If EVA can increase to 3 daily after MH took off, I see no reason why MH cannot stay on this route being the sole oneworld operator.

cesco.g

Agree, but the SQ LAX-NRT-SIN arriving at 3h30-ish a.m. is operating quite successfully it appears.

I had a C-class award booked in July and was able to switch it to CX some 2 weeks ago. A 2x blessing as it turns out. Still unfortunate for OneWorld fliers, as this put more pressure on remaining award seats, especially alongside the pool of US fliers joining in now.

LAX888

It is sad but I am not surprised. I think the route might have done better if it routed through another city which is not served from LAX (like KIX for example which apparently JL may restart again).

Does this also mean that there will be no more 2 flights to NRT on certain days?

Penguinmoon

OH no! I liked this flight, and have taken it three times since MH joined OW. Much cheaper C class that all the other one world carriers, especially when when starting and ending in Cambodil was just over 2000 USD. Will miss it!

AddictedTraveller

There goes my redemption option!!

farulg

There was always talk about MH dropping LAX and possibly substituting for DFW after joining OneWorld. Sad to see the route go, but it didn't make sense with all the competition from NRT-LAX despite the full flights.

I also enjoyed the annual MH Enrich sales. Flying C KUL-LAX for 60k Enrich miles return was a fantastic deal, too bad it's gone now.

bzcat

I'm just speculating but I think the real reason why MH switched from TPE to NRT is because SQ did it first... MH cannot lose face and stay in the less glamorous TPE sector for their flagship TPAC LAX flight. Political decisions made by the airlines are often not very rational and this is just another example.

Here were all the known facts before MH pulled the plug on KUL-TPE-LAX and switched to KUL-NRT-LAX:

1. Taiwan was on the verge of getting in on the US-Visa waiver program when they pulled the plug on TPE-LAX. Travel demand between TPE and USA was about to significantly expand.
2. CI and BR were on the verge of being accepted to Skyteam and Star, which would leave room for an OneWorld airline on TPE-LAX.
3. NRT-LAX was already served by 2 sets of home-nation airlines (AA+JL, UA+NH) that had hubs on both ends. And the US Govt was in the process of granting them anti-trust immunity for metal-neutral revenue sharing!
4. And there was already a 3rd entrenched US carrier -DL!
5. And a well established 5th freedom operator - KE!

But mortal enemy SQ just started NRT-LAX and was switching to A380 - MH could not let this go unanswered!

TerryK

SQ has been flying SIN-NRT-LAX for decades. SIN-TPE-LAX was a separate route which SQ suspended. For a period of time, SQ had three daily SIN-LAX flights, one via NRT, one via TPE and one nonstop.

bzcat

SQ did 1x daily via NRT and 1x daily via TPE for years. When they terminated TPE, they did 1x 77W and 1x77E via NRT... so they did "switch", but just for a brief time. The 2x daily was replaced with a single A380 later.

TerryK

SIN-NRT-LAX was served by 744 for years before upgauging to A388. I don't believe it was ever served by 77W. No idea what 77E is.

Columbusite777

Was hoping to fly them to NRT this summer. It's sad to lose this route, even if it was just for prestige purposes.

I've also often wondered why MH didn't do KUL-KIX/NGO-LAX.