Group managing director and CEO Peter Bellew has wasted little time in setting a new direction for the airline since taking over from Christoph Mueller on July 1.
There is good news for those flying at the front and the back of Malaysia Airlines Bhd (MAB) planes. The airline is changing the way it prices its airfares – offering more perks but higher fares in business class, and fewer perks but with lower prices at the back of the cabin.
Group managing director and CEO Peter Bellew has wasted little time in setting a new direction for the airline since taking over from Christoph Mueller on July 1.
He told The Edge Daily, “Passengers seated up front, in business class, will enjoy high levels of service, but they have to pay a premium, while those seeking low value-for-money products will sit in the back of the plane.”
Bellew said Malaysia is the lowest fare market in the world. “You have Lion Air, Air Asia, Malaysia Airlines and other FSCs (full service carriers), so you can’t ignore that. And if you are in the leisure business, you have to be competitive with your pricing.
“If you have an aircraft, you should be trying to get your load factor up over 85% and the only way you are able to do that is by playing with price elasticity,” Bellew added.
Malaysia Airlines will introduce premium economy seats next year as it retrofits its A380 fleet and takes delivery of six new A350s, which will be used on routes to London.
Bellew confirmed that MAB plans to sell its entire fleet of A380s by 2018.