By Sharen kaur
KUALA LUMPUR: Malaysia Airlines (MAS) will most likely not put up for sale all the six A380 super-jumbo planes that it owns, but it could come as a final resolution to save the national carrier, sources said.
Business Times understands that newly-appointed chief executive officer Christoph Mueller is looking at keeping most of the Airbus A380s to serve the airline's highest-performing routes.
MAS inked a contract with Airbus to buy the six planes in 2003. The first A380 was delivered in May 2012.
The aircraft's list price in 2012 was USD389.9 million (RM1.4 billion).
The national airline is using the A380s, which can carry 494 passengers, on its Paris flights and the Kuala Lumpur-London route.
It is learnt that the current average passenger load for the Paris and London flights is about 80 per cent.
"The London and Paris routes are among the most profitable for MAS.
Many people love the A380 and actively seek the plane when they fly.
There have been cases when MAS had to offload passengers.
"While selling the A380s will generate cash flow to cover losses, or a wet lease can dress up the financials, MAS is studying other profitable routes that it currently does not serve, and may use the jumbo planes when it makes a decision to fly there.
"It is looking at routes that its foreign rivals are making a good return on investment," sources told Business Times.
It was reported that MAS planned to sell all of its A380s or lease them in a bid to reduce operational cost, which was much higher than its peers.
In response, Mueller, who formerly helmed Aer Lingus, had said MAS was still exploring fleet options to enhance viability of long haul sectors.
"MAS needs to operate and utilise its fleet at an optimum level besides maximising revenue on the route it flies. The market needs to give MAS room to explore various options in determining the most viable strategy," he said.
It was also reported recently that MAS might take the A380 jumbo planes off the KL-Paris route next month.
According to Aviation International News, MAS plans to offer the aircraft for lease on the open market and downgrade the aircraft used on the Paris flight to Boeing 777-200ERs.
In February, Turkish Airlines was reportedly looking to lease two A380s from MAS.
KUALA LUMPUR: Malaysia Airlines (MAS) will most likely not put up for sale all the six A380 super-jumbo planes that it owns, but it could come as a final resolution to save the national carrier, sources said.
Business Times understands that newly-appointed chief executive officer Christoph Mueller is looking at keeping most of the Airbus A380s to serve the airline's highest-performing routes.
MAS inked a contract with Airbus to buy the six planes in 2003. The first A380 was delivered in May 2012.
The aircraft's list price in 2012 was USD389.9 million (RM1.4 billion).
The national airline is using the A380s, which can carry 494 passengers, on its Paris flights and the Kuala Lumpur-London route.
It is learnt that the current average passenger load for the Paris and London flights is about 80 per cent.
"The London and Paris routes are among the most profitable for MAS.
Many people love the A380 and actively seek the plane when they fly.
There have been cases when MAS had to offload passengers.
"While selling the A380s will generate cash flow to cover losses, or a wet lease can dress up the financials, MAS is studying other profitable routes that it currently does not serve, and may use the jumbo planes when it makes a decision to fly there.
"It is looking at routes that its foreign rivals are making a good return on investment," sources told Business Times.
It was reported that MAS planned to sell all of its A380s or lease them in a bid to reduce operational cost, which was much higher than its peers.
In response, Mueller, who formerly helmed Aer Lingus, had said MAS was still exploring fleet options to enhance viability of long haul sectors.
"MAS needs to operate and utilise its fleet at an optimum level besides maximising revenue on the route it flies. The market needs to give MAS room to explore various options in determining the most viable strategy," he said.
It was also reported recently that MAS might take the A380 jumbo planes off the KL-Paris route next month.
According to Aviation International News, MAS plans to offer the aircraft for lease on the open market and downgrade the aircraft used on the Paris flight to Boeing 777-200ERs.
In February, Turkish Airlines was reportedly looking to lease two A380s from MAS.
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