Technical issues affecting MAS reflect inherent problems within the company
by GLORIA HARRY BEATTY
MALAYSIA Airlines Bhd (MAS), once a symbol of national pride, has faced a series of challenges that have shaken its foundations.
Two weeks ago, MAS Flight MH66 to South Korea was forced to return to Kuala Lumpur International Airport (KLIA) shortly after take-off.
In addition to the recent incident, at least three other Malaysia Airlines flights have encountered emergencies requiring unscheduled landings this year.
On Aug 4, a flight carrying 259 pilgrims to Jeddah was forced to return to KLIA shortly after take-off due to a technical issue. Earlier, on June 24, a flight bound for Bangkok turned back to KLIA after experiencing a pressurisation problem.
Just a few days before that, on June 20, a KL-bound flight with over 100 passengers made an emergency landing at Hyderabad Airport in India following an engine malfunction.
All these technical issues stem from MAS operations, which have been criticised for lacking in certain areas.
Economist Geoffrey Williams believes that MAS’ problems could be permanently resolved if the airline is given to the private sector and subjected to market forces.
He explained that this would prevent the airline’s issues from recurring, as it is “typical” for government-run companies in Malaysia to be repeatedly bailed out whenever they fail.
“This creates bad incentives for managers and leaders, as they know they are protected when things go wrong and continue to receive their salary and benefits regardless of company performance,” he told The Malaysian Reserve (TMR).
MAS is wholly owned by the government through the sovereign wealth fund Khazanah Nasional.
The airline released a statement from Malaysia Aviation Group (MAG) group MD Datuk Captain Izham Ismail, affirming its commitment to ensuring safe and reliable operations while focusing on stabilising its services.
“While it was a difficult decision, our priority is to put customers first, ensuring we can deliver credible flight schedules and provide the best possible customer experience moving forward.
“The reduced network involves 20% of our capacity, comprising routes from MAS, Firefly and Amal across domestic Malaysia, ASEAN, North Asia, Australia, New Zealand, Greater China, South Asia and the Middle East,” he said.
Ahead of the Civil Aviation Authority of Malaysia’s latest directive, the group had proactively reduced capacity to ensure safe and reliable operations.
As global air travel returns to normal levels, the airline is addressing post-pandemic challenges such as supply chain disruptions and delays in spare parts production.
It is cautiously restoring capacity in response to these issues, which have also affected the timely delivery of new aircraft. MAG was expected to receive 17 new aircraft by 2024 but has so far taken delivery of only four Boeing 737-8s and is now expected to receive three of the four planned A330neo aircraft.
“At the same time, we are working closely with our stakeholders, including regulators and original equipment manufacturers (OEMs), to effectively address operational challenges and ensure the timely and reliable delivery of spare parts — encompassing sufficient high-quality spares and a robust aircraft maintenance programme,” the group added.
It is also addressing workforce issues by partnering with new maintenance, repair and overhaul providers and enhancing employee compensation.
MAG acknowledges the inconvenience caused to customers and is offering compensation options, including flight reallocations and full refunds without penalties.
Passengers are encouraged to use the “My Booking” feature on the website for faster service. MAG appreciates its customers’ patience and understanding as it works to resolve these issues and improve its services.
TMR reached out to the group but had not received a response by press time.
Referring to the airline’s statement, Williams noted that while it was honest, it lacked potential solutions.
Passengers are encouraged to use the ‘My Booking’ feature on the website for faster service (Source: malaysiaairlines.com.my)
“The fact is that MAS has faced problems for decades, primarily at the senior management and governance level. For years, it has been protected as the national flag carrier, and failures in management and leadership have gone unaddressed,” he told TMR.
Regarding the impact on the economy and the industry, Williams noted that the aviation sector is broad, with many providers in the market.
“In fact, one could argue there are too many. MAS will be hit; it will lose technical staff, customers and revenue, leading to cuts in flights and services and a decline in business.
“But for the industry, customers will switch, new flights and routes will be offered by others, and technical staff and cabin crews will find jobs elsewhere.
“The industry will adjust, MAS will suffer and the government will lose money if it uses taxpayers’ funds to bail out a failing company,” he added.
MAS has had problems for decades, mainly with senior management and governance, says Williams (pic: TMR)
Meanwhile, International Air Transport Association (IATA) Corporate Communications (Singapore) head Albert Tjoeng said supply chain problems and a shortage of skilled manpower are among the issues still affecting the global aviation industry following the Covid-19 pandemic. According to recent data for July 2024, total demand (measured in revenue passenger km) increased by 8% compared to July 2023. Total capacity, measured in available seat km, rose by 7.4% year-on-year (YoY). The July load factor was 86%, an increase of 0.5 percentage points compared to July 2023.
IATA also found no significant negative impact on demand from the CrowdStrike IT outage on July 19. International demand rose by 10.1% compared to July 2023, with capacity up by 10.5% YoY. However, the load factor fell to 85.9%, a decrease of 0.3 percentage points compared to July 2023.
In the same statement, IATA DG Willie Walsh noted that while the end of the summer season demonstrated strong travel demand, persistent supply chain issues highlight the urgent need for solutions to keep air travel accessible and affordable.
“The winding down of the peak northern summer season underscores how much people rely on flying. As the mix of travellers shifts from leisure to business, the many roles of aviation become evident — reuniting families, enabling exploration and powering commerce.
“People need and want to fly, and they are doing so in great numbers. Load factors are at near maximum capacity.
“However, persistent supply chain bottlenecks have made it more challenging to deploy the capacity needed to meet travel demands. As much of the world returns from vacation, there is an urgent call for manufacturers and suppliers to resolve these issues so that air travel remains accessible and affordable for everyone who relies on it,” he added.
Mohd Harridon says accountability is the first step to finding effective solution (source Mohd Harridon’s LinkedIn)
Weighing in on the topic, Assoc Prof Mohd Harridon Mohamed Suffian, an economist specialising in aviation and aerospace at the Malaysian Institute of Aviation Technology in Kuala Lumpur, said the technical issues affecting MAS reflect inherent problems within the company.
He noted that the media statement acknowledged these issues, which he sees as a positive step towards taking responsibility. He added that accountability is the first step toward developing viable solutions to improve the situation.
At the same time, Mohd Harridon highlighted that similar challenges have affected many airlines globally.
“The logistical aspect is under significant strain, with high demand for niche spare parts due to the excessive use of aircraft worldwide during certain periods.
“The surge in flight operations has placed considerable strain on aircraft components, and production has not kept pace with the degradation rate of these components.
“Thus, we are observing a global phenomenon that requires the careful and prudent attention of airline engineering departments.”
To some extent, Mohd Harridon believed that some of these issues could have been mitigated with a comprehensive prevention plan.
He recommended that MAS work in parallel with the OEM and share databases of overhaul, maintenance and flight operations with the OEM to develop an effective mathematical model to predict component failures.
“Being able to make this projection at an early stage would prevent significant delays in replacing defective components and subsequently avoid technical issues,” Mohd Harridon added.
- This article first appeared in The Malaysian Reserve weekly print edition
