NEWS SPECIAL REPORT

16 June 2016 travelweekly.co.uk 21

Malaysia Airlines has made a quarterly profit for the first time in six years and is expecting a recovery in UK visitor numbers to the country after a sharp decline last year.

The airline wouldn’t reveal details of its first-quarter results but said it didn’t expect to post a full-year profit until 2018.

Tourism Malaysia figures show there was a drop from 446,000 UK visitors in 2014 to 401,000 in 2015.

However, for 2016 the flag-carrier expects to see a recovery “back towards the 2014 level” and is targeting refloating

Malaysia Airlines has “significantly increased” fam trip opportunities, recognising agents as “one of the best ways to get the brand front of mind”.

It has taken 18 UK agents away so far this year and will host at least 85 more by the end of the year.

“We’re going to go out of the way to try and re-engage with the trade,” said chief commercial officer Paul Simmons.

“We’ll be seeking to get as many of our trade colleagues over here as we can to experience the airline and the destination – to get it back to being front of mind.”

Simmons said whether consumers feel uncomfortable flying with the airline or to the destination is not something it “empirically measures”.

“It is starting to break down but one of the best ways to break it down is for the agent to say they know what it’s like because they’ve been there,” he said. “And if I’m getting people out there I need to have good offers as well.”

As an incentive for agents, until June 30 Malaysia Airlines is

or leaving government ownership by 2020.

Two years on from aviation tragedies that sent shockwaves around the world, the airline remains in the throes of a three-phase turnaround plan due to run until 2018.

Flight MH370 from Kuala Lumpur to Beijing disappeared on March 8, 2014, while just four months later flight MH17 was shot down flying between Amsterdam and the Malaysian capital.

Chief commercial officer Paul Simmons said: “To rebuild it takes a while. In certain markets it’s pretty much back to where it was, or even ahead. In the UK in particular we need to carry on with brand-building activity.”

Simmons said Malaysia Airlines had moved past the “less pleasant”

offering a £30 voucher for every first or business-class return ticket sold and a £10 voucher for every economy-class ticket for travel up to December 8. Vouchers can be claimed at Malaysiaairlinesgiveaway.co.uk.

Simmons said the airline “cannot get away” from the fact the

part of the plan, having shed about 8,000 staff. He said there are no plans to reduce the network, fleet or staff further.

“If you think about what’s happened to the airline in the past two or three years – not only with the tragedies but with the massive downsizing and reshaping – to get it to a profit in this quarter was a major achievement,” said Simmons.

“We haven’t committed to continually delivering annual profit until 2018, so we’re on track.

“We’re now flying the routes we want to fly with the aircraft we want to fly and starting to rebuild the brand as well.

“There’s a long way to go and I have no misguided views of optimism that we’re there yet, but it’s nice to see now that we can actually deliver the business plan.”

Simmons added: “We would still like to rebrand because we believe the service changes and improvements we’re making deserve a rebrand. Exactly when we’re still looking at.”

He said a rebrand would not necessarily mean a renaming.

MH370 disaster happened.“Clearly we have ongoing deep

sympathy for the families and all involved. In terms of the business all we can do is try and put our best foot forward,” he said.

“Although it is still in the news I think the resonance is potentially dying down a bit. We’re doing our level best to get back to where we used to be and that’s not just because we want to, it’s because it’s where we need to be.” › Malaysia Airlines is giving away

places on a fam to the Rainforest World Music Festival in Borneo in August: Competitions, page 42

Malaysia Airlines ‘on track with business turnaround’

Airline plans to host 100 agents on fams this year

“We’d like to rebrand because we believe the changes we’re making deserve it”

“We’re doing our best to get back to where we used to be – it’s where we need to be”

Malaysia Airlines is leasing two new Airbus A350-900s to complement an existing four on order, as it seeks to reach a “critical fleet size”.

Chief executive Christoph Mueller said the additions would allow standby aircraft to undergo scheduled maintenance, but would also enable future network expansion.

He added: “Technological and innovative advancements make flying this aircraft a real pleasure and it will bring a whole new experience to our offerings, with the aircraft able to operate non-stop from Kuala Lumpur to London and throughout Asia.”

Preparation for the introduction of the new aircraft, planned for late 2017, is ahead of schedule.

Malaysia Airlines says it actively assesses new route opportunities on an ongoing basis and is currently evaluating the possibility of serving “unique and new” destinations with narrow-body aircraft with long-range capability.

Carrier leases two A350s ahead of network expansion

MAS invests in its onboard experienceMalaysia Airlines has spent an undisclosed sum as it seeks to improve customer experience across its fleet.

Four of 15 A330-300s are now equipped with new lie-flat business class seats, with the rest due to be converted this year, while 18 new premium economy seats have been installed on the A330 fleet.

A new ‘dine on demand’ service has been introduced for first and business-class customers; a new premium economy class will be installed on the A380s this financial year; and the carrier is soon to start rolling out Wi-Fi on its long-haul wide-body aircraft.

Malaysia Airlines says its strategy to revive its fortunes is beginning to pay off. Jennifer Morris reports from a fam trip to Langkawi and Kuala Lumpur

A380 aircraft are part of carrier’s fleet

Malaysia Airlines recently hosted 19 agents on a trip to Kuala Lumpur and Langkawi

Kate Self, Travel Counsellors “What stands out is Malaysia Airlines’ service. I can tell clients the quality of

the aircraft is excellent and although we flew business, the economy class has one of the best seat pitches in the sky.”

Carol Smith, Co-operative Personal Travel Advisors “In the past couple of years some clients

have been reluctant to fly Malaysia Airlines. I can usually change their mind about that and now feel even more confident of that having had such a good experience.”

Nick Harding-McKay, Travel Designers “This fam trip has been one of the best I’ve been on. I liked

the spaciousness of Malaysia Airlines’ business class. It is good value with great service.”

Shannon McCandlish, Thomas Cook “I couldn’t believe how luscious and green Langkawi

was. Malaysia is just fabulous. I’ll definitely feel more confident recommending it and I’ll arrange an evening at our branch to promote it.”

AGENTS’ FAM TRIP FEEDBACK

20 travelweekly.co.uk 16 June 2016

Paul Simmons: ‘Quarterly profit is a major achieve-ment’

› Caught on Camera, page 44

Rainforest World Music Festival

Orangutan in Sarawak