The Invisible Hand.

I read this piece of interesting discussion on Emirates and Sri Lankan Airlines. For those of you who didn’t know, for the past 10 years, Emirates have been under Management Share Agreement with Sri Lankan Airlines. This gives them the right to manage Sri Lankan Airlines in any way that they see fit. And it is not such a bad agreement because Emirates would be able to exploit Sri Lankan Airlines’ route network and Sri Lankan Airlines get to align itself with one of the fastest growing airlines in the world.

However, as at March 2008, all this is going to end. Emirates are no longer interested to renew the Management Share Agreement with Sri Lankan Airlines. And it seems like the main reason for this is because the Sri Lankan government wants more control on how the airline should be run. I guess this is what happens when politicians want to do something that they don’t know how to do.

Both Sri Lankan Airlines and Emirates are state-run airline company. The difference between the two is, while Sri Lankan Airlines is run like a government department, Emirates is run like a business. Rings any bell here? Malaysia Airlines (MAS) is a state-run airline company, but unfortunately, it is not run like a business. Tell me, how many times does MAS have to alter their route rationalisation plan just to satisfy some politicians? Why does MAS still operate on loss-making routes?

Malaysia Airlines is not a great airline but it is not the worst either. It can be better if some people just let the management do their own job. I am sure they can do better job without having someone breathing down their neck 247. Whatever it is, I just hope that MAS can climb back – not on its feet – but onto an escalator because MAS is the most laid back airlines – at least in South East Asia. I mean, come on, MAS doesn’t have online check-in facilities or e-tickets. Their website’s search engine is still primitive compared to other airlines (read Singapore Airlines and Thai Airways). Their business class is comparable only to premium economy class in other airlines (read Virgin Atlantic). Their first class is at the same level as other airlines’ first class (again read Singapore Airlines). The only things left that can be proud of (if you want to) are its in-flight services.

Having said all that, do I still love MAS? I must say I do. Do I want to work with MAS? Hell I want to. Why? It’s because I believe that if they had been good before, there is no reason why they cannot be better in the future. Besides, the only problem that MAS is having now is financial-wise and not product-wise (read Proton), therefore it is only a matter of time before the company climbs back on the escalator.

I guess I will stop here for now. Have three essays to finish before Wednesday.

Comments

Hafizah said…
MAS uses 100% e-tickets for domestic flights. and moving towards e-tickets for international flights. Having experienced some other airlines before I'd have to agree that MAS's inflight service is the best although the food is lousy. hehe
Adam Ahmad said…
Good observation :)

I guess I overlooked that part.
Anonymous said…
100 % e-ticket for domestic ? are you serious ? double check please.
Adam Ahmad said…
This is a press release by Malaysia Airlines on the 28 Sep 2007,

"The cutover of all 16 Malaysian domestic stations and 27 out of 40 international stations to the new SITA Departure Control System has also been completed, with plans to roll out eTicketing to all Malaysia Airlines’ ticketing offices worldwide on 28 October."

It does not mention about the 100% e-ticket for domestic route. I'll get back on this when I have more information.

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