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Singapore-Malaysia air merger?

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  • Malaysia’s struggling flagship carrier has unexpectedly agreed to explore a partnership with its fierce Singaporean competitor
  • While there has been resistance against a future merger on grounds of national pride, some analysts say such an alliance makes good business sense

https://www.scmp.com/week-asia/economics/article/3016531/does-singapore-airlines-and-malaysia-airlines-partnership-clear

 

 

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I must  say I find the description "fierce competitors" as more than hyperbole - its a total joke. The only route on which the carriers compete is the ultra-short haul KL to SIngaore. I actually prefer just to take the bus on that route. SIA is one of the world's great airlines and a highly successful one even, though like many it is facing problems. Malaysian used to be very good but it has gone through all sorts of troubles in recent years - at least a decade - and it still cannot establish itself. The hardware is nowhere near as good as SIA. Business class seats in much of its fleet are the old angle-flat variety. For years it has been trying to get rid of its A380s. Maybe they are gone by now, I don't know. 

MAS must be on at least its third CEO in recent years and yet another restructuring plan. The downing of its 777 over Ukraine and the still unexplained disappearance of another 777 have not helped. But it just cannot compete with Air Asia at the lower end of the market nor with SIA nearer the top.

Around 20 years ago the cheapest round the world rickets which could be purchased in Asia were ex-KL. They resulted in a major saving. Then it was Bangkok. Now I dont know. But MAS must be being kept alive by substantial state aid. Frankly I cannot see what SIA will get out of the deal. Better for Malaysia if Mahatir can stomach it to let MAS go under, sell its assets and then start a smaller, much more focussed airline if thats what Malaysia wants. What SIA is going to get out of this proposed merger I havent the faintest idea!

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3 hours ago, PeterRS said:

Frankly I cannot see what SIA will get out of the deal. Better for Malaysia if Mahatir can stomach it to let MAS go under, sell its assets and then start a smaller, much more focussed airline if thats what Malaysia wants. What SIA is going to get out of this proposed merger I havent the faintest idea!

Frankly, it would be better if ALL flag carriers were allowed to stand on their own two feet, without being propped up by governments (in some cases).   If most of them disappeared & were replaced by airlines run by entrepreneurial capitalists, the world would be a better place.

I don't see the sense in this merger.    Singapore Airlines has a good brand.     I'm still avoiding Malaysian Airlines after losing two planes in recent years, one of which remains unexplained.  

The last time I wanted to fly London-KL, Malaysian were £499 and BA were about £1400, which suggests I am not alone in having such concerns.   I don't like BA either, so flew via Singapore.

 

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17 hours ago, z909 said:

Frankly, it would be better if ALL flag carriers were allowed to stand on their own two feet, without being propped up by governments (in some cases).   If most of them disappeared & were replaced by airlines run by entrepreneurial capitalists, the world would be a better place.

I have a problem with total free competition. When it comes to airlines it appears to end up as a race to the bottom. I didn't experience BA when it was a state owned carrier. When it was first privatised it was extremely good. Now it is a near disaster - and a costly one at that. Economy class is close to a joke and business class is definitely a joke. What other airline has 8 across seating in business class and forces its business class customers to pay a huge amount to select their seats advance? Want a seat on the upper deck of an A380? Fine. Be prepared to add £105 per sector on to the cost of your ticket. And beware! That extra charge is going up soon.

Cathay Pacific used to have an enviable reputation. it is still a fine airline but its standards have dropped considerably especially in F&B. Putting 10 across economy seating on long haul 777s is sardine time. Try that on a 17 hour flight from New York to Hong Kong!

Another area is seat pitch. On long haul economy 747 flights sitting at a window seat I can recall when it was relatively easy to pass the other two passengers without disturbing them. Now that is absolutely impossible even if you are a small child.

As for airlines in the USA, well most scrape the bottom of the barrel in almost every respects. Thats what happens with outright competition. I realise the Gulf carriers are subsidised and certainly Emirates and Qatar (havent tried Etihad yet) have a business class that is almost unbeatable. If those subsidies were taken away, i have no doubt that all that the hard and soft products on all three airlines would plummet.

The fact is there can never be real competition. Vietnam Airlines has a good reputation for its business class. But its costs for pilots, cabin and maintenance crew will be very substantially lower than SQ and CX. So what can those airlines in much higher wage countries do?

 

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1 hour ago, PeterRS said:

As for airlines in the USA, well most scrape the bottom of the barrel in almost every 

That’s a lot of crap. US carriers are the most profitable and there plenty of competition. 

The seat pitch on Jet Blue is among the most generous in economy anywhere and you can carry on two bags free. 

If you’re headed for Asia, don’t think you can beat the major Asian carriers on price and schedule. And for service, ANA and Singapore stand out among the crowd.

For convenience of connections from the US east or west coasts, Cathay Pacific offers the best en-route times to Bangkok.

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15 hours ago, reader said:

That’s a lot of crap. US carriers are the most profitable and there plenty of competition. 

The seat pitch on Jet Blue is among the most generous in economy anywhere and you can carry on two bags free.

I am delighted there is at least one carrier which is better than the biggies like United, Delta and American. They may be profitable, bur for the passenger experience they mostly scrape the barrel compared to a huge proportion of other airlines. In case you misunderstood I was referring in particular to the soft product. I have flown all three I mentioned. I get quoted a basic fare and then have to pay for all sorts of extras for my hold baggage, a  pilllow or blanket, for a tiny bag of peanuts, a coke and so on. When I travel in Asia, all that is free unless I take a real budget carrier. Plus on the US carriers the service on board and frequently on the ground is like you are doing them a service instead of the other way around. On most other carriers I usually get at least a smile or two!

Incidentally you say on Jet Blue you can carry two bags for free. Bags in the hold? I dont think so. Im certain that is only a wheelie bag and a computer or handbag on board. In coach on most carriers I fly outside the US I get one free bag in the hold, a free meal or even two, free drinks, free blanket and pillow etc. And in many cases I get a 32 inch seat pitch (although I admit not all).

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You didn’t read what I wrote. I said Jet Blue allows you to carry on (not check) two bags free. This is the same practice for Southwest Airlines, the largest Low cost carrier. They, along with Alaska Air, usually take the top three in passenger satisfaction surveys (and yes they still serve free drinks and snacks).

The majors sell their tiered products (pay for only what you want) because passengers may bitch about the add ons but continue to pay for them. It’s charging what the market will bear. Having said that, flying today is little more expensive than it was a decade.ago. That makes the majors profitable without government subsidies.

Asian carriers have lower personnel costs with fewer benefits so it’s understandable that they can comp you coke and peanuts .

lf you want a smile with your nuts, you’re better off going to Luckyboys.

 

 

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Maybe, but the “off” experience is more perilous. Lol

Btw, noticed you had no qualms about taking US carriers to task but somehow managing to avoid any of the dreaded Euro carriers in your own backyard. A bit myopic, no?

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1 hour ago, reader said:

Btw, noticed you had no qualms about taking US carriers to task but somehow managing to avoid any of the dreaded Euro carriers in your own backyard. A bit myopic, no?

Did you miss this earlier referring to British Airways?

22 hours ago, PeterRS said:

When it was first privatised it was extremely good. Now it is a near disaster - and a costly one at that. Economy class is close to a joke and business class is definitely a joke.

BA is as bad as any any airline I have flown. Twice lost my luggage. Each time left my contact numbers. Accessing its helpline is impossible because it is rarely answered. When it is, they are clueless. Once at Lyon airport having been in that part of the world for three days, I called more than a dozen times, got zero notification and was certain I would end up crossing the Atlantic without my case, Back at Lyon airport I decided just to look at the lost luggage area. There it was. 

I dont take many European airlines. I like Easyjet and have had only good experience on it. Never tried Ryanair. Have not had a problem with Air France, KLM, Lufthansa or Finnair. Nothing as bad as American from Miami to La Guardia when half the passengers were stuck at LGA for an hour and 45 minutes because they could not open the rear cargo door of the 757. It was after midnight before someone found the right spanner or whatever they needed.

Everyones experience is different. Checking the Skytrax reviews gives a pretty good ides of what an airline will be like if you chuck out the best and worst reviews and then take an average.

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