History Malaysia Airlines

Malaysia Airlines System Berhad (MYX: 3786), DBA Malaysia Airlines (abbreviated MAS), is the government-owned flag carrier of Malaysia. Malaysia Airlines operates flights from its home base, Kuala Lumpur International Airport, and its eastern hub in Kota Kinabalu. It has its headquarters on the grounds of Sultan Abdul Aziz Shah Airport in Subang, Selangor.

Despite a financial restructuring exercise in 2006, Malaysia Airlines maintains a strong presence in Southeast Asia, East Asia, South Asia, Middle East and on the Kangaroo Route between Europe and Australasia. Malaysia Airlines also operates transatlantic flights from Kuala Lumpur to Buenos Aires, via Cape Town. It operates transpacific flights from Kuala Lumpur to Los Angeles, via Taipei. In 1997, the airline flew the world's longest non-commercial, non-stop flight from Boeing Field in Seattle to Kuala Lumpur, flying eastward passing the European and African continents and breaking the "Great Circle Distance Without Landing" record for an airliner on a Boeing 777-200ER, longer than the record held by the Boeing 777-200LR.

Malaysia Airlines' non-aeronautical revenue sources include maintenance, repair and overhaul (MRO), and aircraft handling. Malaysia Airlines has two airline subsidiaries: Firefly and MASwings. Firefly operates scheduled flights from its two home bases Penang International Airport and Subang International Airport. The airline focuses on tertiary cities although has recently launched services to Borneo from Kuala Lumpur International Airport. MASwings focuses on inter-Borneo flights. Malaysia Airlines has a freighter fleet operated by MASKargo, which manages freighter flights and aircraft cargo-hold capacity for all Malaysia Airlines' passenger flights. MASCharter is another subsidiary of Malaysia Airlines, operating charter flights using Malaysia Airlines' aircraft. After recovering from past losses, Malaysia Airlines is keen on merger and acquisition (M&A) activities: particularly airlines in the Asia Pacific region. Malaysia Airlines was ranked second with score 88 in Aviation Week's Top Performing Companies which accurately measures financial viability of an airline.

Since its inception in 1963, after Malayan Airways was separated into two parts, Malaysia Airlines has built up a strong brand name in the aviation industry for service and safety, coupled with numerous awards from international bodies such as Skytrax. Malaysia Airlines is accredited by International Air Transport Association with IOSA (IATA Operational Safety Audit) for its operational safety practices.

Malaysia Airlines is one of the seven airlines to be ranked as a 5-star airline by the indepedent research consultancy firm Skytrax. Malaysia Airlines is also listed among Skytrax's Quality Approved Airlines.

History Malaysia Airlines

Malaysia Airlines commenced operations in 1987 after the airline changed its name from Malaysian Airline System. The airline began in 1947 as Malayan Airways, being renamed Malaysian Airways after Malaysia gained independence. After that, it changed its name once more to Malaysia-Singapore Airlines and thereafter ceased its operation. It was then divided into Malaysia Airlines and Singapore Airlines.

Malayan Aviation History

Scheduled air passenger and mail services in Malaya commenced in 1937 when Wearne's Air Service (WAS) commenced operating services between Singapore, Kuala Lumpur and Penang. Wearne's Air Service was started by two Australian brothers, Theodore and Charles Wearnes. The service commenced as a thrice weekly flight between Singapore and Penang The first flight, using an 8-seater de Havilland DH.89A Dragon Rapide took place on 28 June 1937 This inaugural flight departed Singapore from the then brand new Kallang Airport which had just opened earlier in the same month on 12 June Later a second D.H.89A enabled the expansion to daily services as well as the addition of Ipoh as a destination. The WAS services ceased with the onset of the Second World War Japanese occupation of Malaya and Singapore.

Expansion

Malaysian Airline System took all domestic routes within Malaysia and international routes out of that country, as well as the remaining fleet of Fokker F27's. It began flights on 1 October 1972. Soon after that, Malaysia Airline System rapidly expanded its services, including introducing long-haul flights from Kuala Lumpur to London.

In the same year, MAS operated flights to more than 34 regional destinations and six international services. In 1976, after receiving its DC-10-30 aircraft, MAS scheduled flights reached Europe, with initial services from Kuala Lumpur to Amsterdam, Paris and Frankfurt.

An economic boom in Malaysia during the 1980s helped spur growth at Malaysia Airlines. By the end of the decade, MAS was flying to 47 overseas destinations, including eight European destinations, seven Oceania destinations, and the United States destinations of Los Angeles and Honolulu. In 1993, Malaysia Airlines reached South America when the airline received its Boeing 747 aircraft. When Malaysia Airlines introduced its service from Kuala Lumpur to South America, MAS became the first and only airline in Southeast Asia to serve South America via its flights to Buenos Aires, Argentina. Malaysia Airlines also flew to Mexico City between 1994 and 1998, taking advantage of fifth-freedom rights which allowed it carry passengers between Mexico City and Los Angeles, enroute to Kuala Lumpur.

Corporate information

Malaysia Airlines is listed on the stock exchange of Bursa Malaysia under the name Malaysian Airline System Berhad. The airline suffered high losses over the years due to poor management and fuel price increases. As a result of financial restructuring (Widespread Asset Unbundling) in 2002, led by BinaFikir, Penerbangan Malaysia Berhad became its parent company, incorporated in 2002, in exchange for assuming the airline's long-term liabilities. On the operational side, the Government of Malaysia appointed Idris Jala as the new CEO on 1 December 2005, to execute changes in operations and corporate culture. Under his leadership, Malaysia Airlines unveiled its Business Turnaround Plan (BTP) in February, 2006, which highlighted low yield, an inefficient network and low productivity (overstaffing). The airline headquarters building in downtown Kuala Lumpur was sold. The new corporate headquarters is now at Sultan Abdul Aziz Shah Airport in Subang, Selangor.

Following the Widespread Asset Unbundling (WAU) restructuring of Malaysia Airlines, Malaysian Government investment arm and holding company, Khazanah Nasional's subsidiary, Penerbangan Malaysia Berhad is the majority shareholder with a 52.0% stake. After Penerbangan Malaysia Berhad, the second-largest shareholder is Khazanah Nasional, which holds 17.33% of the shares. Minority shareholders include Employees Provident Fund Board (10.72%), Amanah Raya Nominees (Tempatan) Sdn Bhd (5.69%), State Financial Secretary Sarawak (2.71%), foreign shareholders (5.13%) and Warisan Harta Sabah (2.4%). It has 19,546 employees (as of March, 2007). Malaysia Government has been reporting that the government's holding company, Khazanah Nasional is keen on selling shares of Malaysia Airlines to remain globally competitive in an industry which is fast-consolidating.

Destinations

Malaysia Airlines, along with Air France, British Airways, Delta Air Lines, Emirates Airlines, Korean Air, Qantas, Qatar Airways, Singapore Airlines, South African Airways, and United Airlines, is one of the few airlines that fly to all six inhabited continents.

Before the introduction of the Business Turnaround Plan, Malaysia Airlines operated 118 domestic routes within Malaysia and 114 international routes across six continents. Malaysia Airlines now flies to 87 destinations across six continents from its primary hub in Kuala Lumpur. It has a particularly strong presence in the Southeast Asia region, which, together with its subsidiary MASWings and Firefly, connects Kuala Lumpur to the most destinations in Borneo Island. Apart from that, the airline has a key role in the Kangaroo Route, on which the airline provides onward connecting flights from main European gateways to major Australian and New Zealand gateways via Kuala Lumpur International Airport, within 5 hours. Malaysia Airlines also operates transpacific flights from Kuala Lumpur to Los Angeles International Airport via Taipei. Transatlantic flights from Kuala Lumpur to Newark Liberty International Airport via Stockholm-Arlanda Airport ended October 2009 due to poor passenger loads.

Under the Business Turnaround Plan, numerous routes had been axed and frequencies reduced. As of September 2007, Malaysia Airlines flies to 88 destinations. In cooperation with code-share partner airlines, the airline serves more than one hundred destinations worldwide. It was the first airline in Southeast Asia to fly to South Africa, following the demise of apartheid, and the only airline in southeast Asia that serves South America (Buenos Aires via Cape Town) until Singapore Airlines starts new route between:São Paulo-Guarulhos International Airport and Singapore Changi Airport via Barcelona Airport . In 2006, it suspended its routes to Manchester, Vienna, Fukuoka, Chengdu, Nagoya, Xi'an, Cairo, Kolkata, Ahmedabad and Zürich under its Business Turnaround Plan. Beginning in 2008, the airline operates new destinations, with Macau and Yogyakarta being the latest additions to its list of destinations. In January 2009, it was reported by the media that Malaysia Airlines would resume flights to Darwin, Australia during the Dry Season. On 10 March 2009, Chinese media reported that an official from the Malaysia Airlines office in Hong Kong told the media that it will suspend the Macau-Kuala Lumpur route by the end of March 2009.

Malaysia Airlines also owns its own charter flight division. Malaysia Airlines' charter flights have flown to destinations around the world, such as Guilin, which was previously one of Malaysia Airlines' scheduled destinations, and Christmas Island. Malaysia Airlines has also been the official airline for the Manchester United Asian Tour It also has a substantial Hajj operation.

Malaysia Airlines has applied for approval to launch 3 weekly Kota Kinabalu – Tokyo Haneda service with Boeing 737-800, effective 15NOV10. Once receiving regulatory approval, Malaysia Airlines will adjust Tokyo operation. All Kuala Lumpur – Tokyo traffic departs/arrives in Narita, and Kota Kinabalu – Tokyo traffic operates from/to Haneda.