Image by John & Mel Kots via FlickrMalaysia Airlines - KLM Signs Memorandum Of Understanding
Dec 22, 2010
Shanghai, 22 December 2010: Malaysia Airlines and KLM are set to investigate closer links with each other, following the signing of a Memorandum of Understanding (MoU) in Shanghai today.
As a natural extension of the current and successful relationship which has been in place for the past 11 years, this collaboration marks an important milestone for the two national airlines and will pave way for potential closer co-operation between the airlines. The benefits include greater connectivity, better schedules and more choices for customers.
The document was signed by Malaysia Airlines Managing Director/CEO, Tengku Dato’ Sri Azmil Zahruddin and KLM’s Chief Executive, Peter Hartman.
Read more about the news at MAS-KLM MOU
This is not the first time I read that Malaysia Airlines ["MAS"] courted other airlines for strategic partnership. First, I heard potential marriage between MAS and Qantas but this time around with KLM.
In the height of increase competition from low cost airlines and other full carrier airlines, it is only a natural progression for legacy airlines such as MAS to think outside the box . For example ; while it is claimed that low cost carrier such as Air Asia and full service carrier such as MAS serve different market segments, in actual fact both are competing for the "same fishes in the same ocean" especially in leisure segment of customers. However, due to economic crisis the business segments of full carrier airlines are slowly losing customers to low cost airlines in the name of cost optimization and cost savings.
Leisure market segment is very sensitive to price. Studies have shown that this market segment would go for the lowest possible price to the extent they are willing to purchase another ticket should they could travel don the day due to some challenges. However, they will only shift to full carrier , if the price is right i.e. less than low cost carriers during the time of booking. It boils down to the cost benefit analysis.
Meanwhile, business segment is time sensitive as time is of an essence i.e. must be at the destinations timely.
I shall discuss of what I think about the propose marriage and few points that I can think off to make the marriage materialize and long lasting marriage in Part 2.
DISCLAIMER: Notice :Opinions, stories , thoughts expressed are blogger's own and do not necessarily represent the views of the institution or the organizations by which the blogger is employed or any specific person who so ever, either dead or alive.
Hi! I am a green e-mail! Unlike my brothers and sisters, my presence on the Internet does not harm our environment. Please go to greenscroll.org and help make the Internet green like me! 
No comments:
Post a Comment