Image via Wikipedia" Hello ! my friend. It seems that you are so excited about the possible knot-tying between Malaysia Airlines and KLM? There is nothing new about it as many have gone through the similar process, with the recent marriage between British Airways and Iberia. With an airlines are one of the shareholders in another airlines, like Singapore Airlines is one of the shareholders in Virgin Atlantic. Code sharing operations between airlines have in in existences in ages, so nothing new. Collaboration between Jetstar and Air Asia for cost reduction and cost saving initiatives. That is why I do not understand why you seem so excited about it. Collaboration between airlines through alliances like OneWorld, Skyteam and Star Alliances "- Unanimous.It is a fair statement. However, let me bring and share with you my perspective about this potential marriage, and why I am so excited about this potential marriage ;
1. Marriage between a perfect stranger
MAS is a non member of any airlines alliances while AirFrance-KLM is one of 12 existing members of SkyTeam, with Garuda Indonesia sets to become a member in Year 2012.
A little bit of SkyTeam alliance in brief and about SkyTeam Facts & Figures
Destinations: 898
Countries: 169
Daily Departures: Approximately 13,000
Annual Passengers: 384 million
Frequent Flyer Members: 116 million
Number of Lounges: 447
Fleet: 1,941 mainline fleet (+1,199 from related carriers)
Year of Formation: 2000
Employees: 316,445
Countries: 169
Daily Departures: Approximately 13,000
Annual Passengers: 384 million
Frequent Flyer Members: 116 million
Number of Lounges: 447
Fleet: 1,941 mainline fleet (+1,199 from related carriers)
Year of Formation: 2000
Employees: 316,445
SkyTeam benefits to the customers ;
1. Access to comprehensive global networks with 13,000 daily flights, 898 destinations in 169 countries ;
2. SkyTeam products offerings that cater for all traveling needs;
3. Access to airline lounges and airlines ticketing counters;
4. Consistent services in all airlines members ;
5. Earning Frequent Flyers points;
How about benefits to the airlines companies ;
1. Brand strengthening and exposure ;
2. Knowledge sharing - best practices for customer services, safety and operational efficiencies;
3. Extensive networks ;
4. Cost Savings - joint synergy through co-locations i.e. maximization of airport office utilization - check in counters sharing, ground handling sharing manpower cost, lounge utilization, luggage handlings
To become a member of SkyTeam, a potential member airline has to meet a stringent set of requirements prior to receiving an invitation for membership. These requirements include customer service standards, safety levels and technology adaptability. As a result of implementing these standards, carriers are equipped to offer high-quality service, consistent with other SkyTeam member airlines, to its passengers as well as delivery of
specific alliance products and benefits.
specific alliance products and benefits.
I still remember vividly , ex-MD/CEO of Malaysia Airlines, Datuk Idris Jala said that " negotiation was on-going with SkyTeam with the hope for Malaysia Airlines to be part of the team members, but it was not easy to join the airlines alliance nowadays". As of this date, MAS is still not a member of any airlines alliances and this potential marriage popped-up again which makes me curious to blog about the topic. If the benefits of joining an alliances are obvious, is MAS "purposely" delaying the process ? On what grounds ? Ironically, Garuda Indonesia who have been recently resolved their safety issue will now be part of the team in 2012 ?
Based on this, one of the obstacles or challenges that may delay MAS joining the alliance or should not join any alliances is that MAS is an award winning and one of the few 5 star airline as compared to its potential "brothers and sisters" who are rarely in the league, may have a reverse effect on MAS brand and image. Very lame arguments . But then again, which is more important ? branding and image ? or profitability ? My answer to the latter is both. MAS have always been wanting to be profitable without compromising its image as a 5 star airline. Based on my suspicious feelings.
Let us have a look at the recent ranking by Skytrax, the passengers' choice awards ;
The top 10 places in the 2010 Airline of the Year :
1. Asiana Airlines
2. Singapore Airlines
3. Qatar Airways
4. Cathay Pacific
5. Air New Zealand
6. Etihad Airways
7. Qantas Airways
8. Emirates
9. Thai Airways
10. Malaysia Airlines
1. Asiana Airlines
2. Singapore Airlines
3. Qatar Airways
4. Cathay Pacific
5. Air New Zealand
6. Etihad Airways
7. Qantas Airways
8. Emirates
9. Thai Airways
10. Malaysia Airlines
Source : Worldairlineawards
Meanwhile ;
The world 5 star airlines are ;
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Source : Airline Quality
It is a different story with other alliances such as OneWorld and StarAlliance, where from the above facts and figures, I must say that they are really in OneWorld and stars of alliance
Star Alliance statistics
- Member Airlines: 27
- Number of aircraft : 4,023
- Number of employees: 402,208
- Passengers per year: 603.8 million
- Sales Revenue (in US$): 150.7 billion
- Daily departures: 21,000
- Number of airports: 1,160
- Number of lounges: over 970
- Countries served: 181
OneWorld statistics ;
- Flight Code : *O
- Member Airlines : 12
- Countries : 145
- Destinations: 901
- Daily Departures: 9,381
- Passengers ('000) :335,712
- RPKs (sched, millions): 695,693
- ASKs (sched, millions) :892,708
- Passenger Load Factor: 77.9%
- Fleet (operated) : 2,473
- Employees : 311,830
- Total Revenue (US$ m) : 91,270
- Passenger Revenue (US$ m) : 71,499
- Operating Profit (US$ m) : -1,334
- Net Profit (US$ m) : -2,570
So, in terms of quality of services i.e. based on the recent statistical data, KLM is nowhere near to MAS. However, in terms of scheduled passengers carried and the size of passengers airlines and operations, MAS is nowhere near AirFrance-KLM and its members in SkyTeam. As such, MAS views and smells this an opportunity for collaboration in a way, "marriage or partnership with a perfect stranger i.e. married and yet sleeping in different beds or even different bedrooms "
I shall continue with Part 4 in my next entry. So, stay tuned !
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.
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