‘India Is Leading Market For Malaysia Airlines Surpassing Australia’
What opportunities do you envision in the dynamic Indian market? In a competitive aviation landscape like India, how do you ensure sustainable growth and profitability for Malaysia Airlines?
As the third-largest aviation market globally, India offers tremendous potential for growth and expansion. Notably, India is also the fastest-growing aviation market in the world. A rapidly growing population along with an expanding middle class are expected to stimulate travel demand, both domestically and internationally. The Indian government is also proactively working towards building or expanding aviation-related infrastructure and we are highly appreciative of the same.
Given the increasing travel demand, we are closely monitoring the level of capacity coming into the market as all airlines rush to ramp up their operations. The challenge is to work towards the right level of supply of seats versus level of demand. We are proactively managing our capacity and operations to mitigate the impact of unprofitable routes resulting from rising fuel costs and market conditions. We remain mindful of potential risks and the volatility of the market, and are taking steps to minimise their impact on our business. By keeping a close eye on market conditions and implementing strategic measures, we are striving to navigate through these times while safeguarding the resilience of our operations.
Balancing healthy competition and sustainable growth in India's competitive aviation industry is challenging. Recognising the value of partnerships and alliances is crucial. While domestic aviation sees rising passenger traffic, India's market remains inviting for foreign carriers like Malaysia Airlines. This competition benefits the Indian aviation market, offering opportunities for both domestic and foreign airlines to thrive.
How do you anticipate new routes contributing to the overall growth of Malaysia Airlines' operations in India?
When evaluating potential new routes, one of the primary considerations is the level of demand, essentially gauging the number of passengers interested in utilising the route. The travel demand from India has been very encouraging for Malaysia Airlines, with average load factor at 81 per cent, prompting us to enhance our connectivity and increase frequencies to the country. Another factor that determines whether a new route can be explored is competitive positioning. In this context, rival airlines frequently strive to be pioneers in accessing a new route. Additional prominent factors such as the viability of operations, strategic importance, and the anticipated financial viability of the route also factor into our decision-making process.
In addition to achieving our goal of operating 60 weekly flights within India by the close of 2023, the introduction of new routes originating from Amritsar, Trivandrum, and Ahmedabad underscores our commitment to long-term growth, increasing our point-to-point connectivity, and solidifying our presence in the Indian market.
Could you share the key initiatives that you are implementing to capture the rising travel demand from India?
The surge in travel demand from India has prompted us to expand our network and offerings for this market. In fact, this demand has propelled India to become Malaysia Airlines' leading market, surpassing even Australia.
Currently, we have already restored over 90 per cent of our pre-pandemic levels in India, operating 57 weekly flights to six destinations, comprising New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and Kochi, and we are on target to restore 60 weekly flights by year end.Noting the strong demand in the market, we also recently announced that we will be expanding our services to three more cities: Trivandrum, Amritsar, and Ahmedabad - starting from November this year. As Malaysia's national carrier, we're steadfast in enabling seamless travel between Malaysia and India. Our Indian passengers can take advantage of the Bonus Side Trip programme, affording them the opportunity to stop over in Malaysia and explore cultural gems like Alor Setar, Langkawi, Johor Bahru, Kota Bharu, Penang, and more at minimal expenses.
For the leisure market, we are also working closely with state tourism boards to position Malaysia as a top-of-mind wedding destination, which is popular with the Indian market. Given that India is a pivotal focus market for us, we're committed to continuously adding new routes, increasing flight frequencies, and upgrading aircraft to cater comprehensively to the growing travel demand.
Your partnership with Acumen Overseas for air travel management is a significant step. How do you envision this collaboration strengthening Malaysia Airlines' position in the Indian market?
In a bid to strengthen our customer base across the Indian network, we recently partnered with Acumen Overseas in March. The role of Acumen Overseas as our general sales agent (GSA) for India is significant as it’s helping us expand our services in the world’s fastest-growing aviation market.
A part of Group Concorde, Acumen Overseas is vastly experienced in airline management. As part of their prestigious client portfolio, the organisation caters to 22 international airlines through their 18 international offices in the Asia Pacific region. With India being their home country, they are spread across 37 branch offices in 23 Indian cities covering North, South, East and West India.
We are actively leveraging Acumen Overseas’ extensive knowledge as well as strong trade and business network to bolster our presence in India. Malaysia Airlines is confident that this association will prove to be meaningful and mutually beneficial for both parties.
Can you share some insights into how the MHfriends programme has helped identify areas for improvement and shape the overall passenger experience on your flights between India and Malaysia?
At Malaysia Airlines, our customers hold paramount importance. We are wholeheartedly dedicated to ensuring a seamless and stress-free travel for each of our passengers. In our pursuit of constant improvement, we place significant emphasis on the input provided by our customers. In this context, MHfriends, an impactful and highly successful venture, stands as a testament to our unwavering commitment to a customer-centric approach. Through this initiative, we actively engage with our loyal and frequent fliers, conducting surveys and encouraging them to share their invaluable insights. This collaborative effort enables us to pinpoint areas where enhancements can be made.
As our customers are the primary users of our services, engaging in open conversations with our customers is crucial. By attentively recognising and addressing their feedback, we can turn them into loyal supporters of Malaysia Airlines. Our commitment to Malaysian hospitality drives us to value kindness, diversity, and embrace each input provided to us to enhance service delivery.
As a member of the Oneworld Alliance, Malaysia Airlines has a broad network. How do you see the role of the alliance in expanding your reach and enhancing services for the Indian market specifically? Are there any collaborative projects within the alliance that benefit passengers traveling between India and Malaysia?
Malaysia Airlines takes pride in being a member of the Oneworld Alliance. Through this, Malaysia Airlines boasts an extensive network that encompasses more than 900 destinations across 170 territories together with Oneworld airline members. In relation to our India operations, we currently operate 57 weekly flights with the recent addition of two flights to Kochi.
We strongly believe in the power of collaboration and building meaningful partnerships in the airline industry. At Malaysia Airlines, we have strategically joined forces with airlines globally. Specifically, for the Indian market, we have interlined partnerships with Air India and Vistara, which offer passengers seamless travel options through connecting flights operated by both airlines. Additionally, we are actively exploring opportunities for codeshare partnerships with Indian carriers that align with Malaysia Airlines' network expansion strategy. Our commitment remains steadfast in seeking balanced partnerships, including those within the Oneworld Alliance, for the benefit of our passengers.
