Idris Jala said Malaysia Airline made the most profit on those months that its flight were delayed or canceled.
This is because almost every flight had 100% passengers which provide optimum revenue and maximum profit. If every flight were to take off which were half-full, then MAS profit would have shrinked. Apart from the optimum profit there were also opportunity profit. For example, those passengers whose flight were delayed or rescheduled may be forced to cancel their flight plan. At such, they would have to pay cancellation charges or at times may just forego the ticket. This way, MAS would gain additional revenue. As one manager of MAS said to me, MAS terms and conditions allow them the rights to alter, amend, reschedule or cancel any flight as they deem fit and passengers who bought the tickets impliedly agrees with the terms and take the full risks. So far, no one had taken any legal action to recover their losses or expenses.
From what we hear and observed, Idris may be tempted to repeat their "Performance" in order to maximise and optimise revenue so as to enhance MAS recovery. Passengers would indirectly be helping the process of turnaround and profitability of MAS. This is MAS greatest pleasure and critical success factors.
Cheerio; Malaysia Boleh!
This is because almost every flight had 100% passengers which provide optimum revenue and maximum profit. If every flight were to take off which were half-full, then MAS profit would have shrinked. Apart from the optimum profit there were also opportunity profit. For example, those passengers whose flight were delayed or rescheduled may be forced to cancel their flight plan. At such, they would have to pay cancellation charges or at times may just forego the ticket. This way, MAS would gain additional revenue. As one manager of MAS said to me, MAS terms and conditions allow them the rights to alter, amend, reschedule or cancel any flight as they deem fit and passengers who bought the tickets impliedly agrees with the terms and take the full risks. So far, no one had taken any legal action to recover their losses or expenses.
From what we hear and observed, Idris may be tempted to repeat their "Performance" in order to maximise and optimise revenue so as to enhance MAS recovery. Passengers would indirectly be helping the process of turnaround and profitability of MAS. This is MAS greatest pleasure and critical success factors.
Cheerio; Malaysia Boleh!
4 comments:
Wah, delay the flight so that it can take off eventually with a full load thus making profits for the airline. Even Peter Druker and Philip Koetlet would not have thought of this. Do SIA or for that matter any other global airlines have to resort to this tactic just to survive? Idris Jala knows only how to cut cost but does not know how to increase sales the conventional way. Instead customer service is compromised so that money could be generated. I have always maintain the fact that there are only so much you can cut in terms of costs. One will still have to come to the 'sales' portion sooner or later. MAS need to be more innovative and one of them is to constantly listen to what the customers have to say and not the other way round. As a marketing consultant myself, I find this revelation shocking!
That's mean, unless you have luxury to waste time on business trip, otherwise avoid MAS for all cause.
No business will wait for MAS delay.
At least AirAsia are doing better than them : filling up the hull month before the schedule flight. This is better than packing customer with flight delays.
Aiyo... I have always been loyal to MAS. If this is the case, I think I will take any other airlines if there is a choice.
General conditions of carriage - MAS
Article 10.3 -
“Except as provided in this Article, we will have no liability to you if your flight is cancelled or delayed to causes beyond our control.”
Airasia’s terms and conditions to carriage
Article 7.1 Cancellation, Changes of schedules
“At any time after a booking has been made we may change our schedules and/or cancel, terminate, divert, postpone reschedule or delay any flight where we reasonable consider this to be justified by circumstances beyond our control or for reasons of safety or commercial reasons.”
- Mmudalupa
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