Interview: Malaysia Airlines – The Unanswered Questions
Support from trade partners has been the 'backbone' to Malaysia Airlines' recovery process. Meanwhile, mixed messages on twitter create a viral storm, in just one example of how the airline has turned being under the spotlight into a means to rise in the ranks of social media.
Here we continue the interview with Malaysia Airlines director of commerical, Hugh Dunleavy, during his visit to Sydney, as well as regional vice president, PK Lee focussing on how the trade affects business.
Travel Today: Empty plane ‘selfies’ – please explain?
Dunleavy: Our airline is ranked number 2 in the world to respond to social media. When she (MasterChef UK winner Wan Ping Coombes below) took the photograph nobody had boarded the plane. We don’t operate planes with 4 or 5 people on board. Our average load factors system-wide is north of 70% – in Australia as well. The challenge is when you’re under intense scrutiny; you’ve just ultimately got to be just that much more careful that people portray it with the right approach.
Travel Today: How important is the trade for your business?
PK Lee: One of the success stories we have is the very good support from the trade. They contribute probably 70% of our business. We make sure they have the necessary tools from us to be successful. Despite the two challenges, they are coming back very strongly. After a week or two after both incidents we saw business and exceeded last year’s performance. We still have more work to do.
Dunleavy: Trade is our biggest partner here, the backbone of our business.
What is the feedback you’re getting from the trade from their consumers?
PK Lee: There’s 2 parts to it. MH370 had different feedback than MH17. MH370 was uncertainty so passengers are waiting for some conclusion. But feedback coming from some of the markets was that they [consumers] were not affected, so they continued to fly Malaysia Airlines. In those markets where they had strength to sell, we continued to engage with the trade. But come MH17, it was different feedback altogether. The question was will Malaysia Airlines will be around next year? The uncertainty was about whether the airline will operate – and we will be around; we will continue to be supported by the government and we will be there long term. We reassured them [the trade] of our commitment in this market that the restructuring and recovery plan is a testimony of the government’s commitment that the airline will continue to fly high and grow in this market.
Travel Today: How should travel agents convince clients to fly MAS?
Dunleavy: Consumers have choices out there, and if I’m a travel agency do I spend time to convince you to fly Malaysia Airlines or if it’s an easier sell, to go on another airline? Clearly at this stage it’s an easier sell for travel agents to do that in some cases.
But I there’s a value proposition that Malaysia Airlines brings to the table and because we’ve got a good relationship with the trade and worked with them for years; I think that’s worked in our favour. But it does require the agency has to be committed to [MAS] because that agency has to talk specifically to that consumer and particularly depending on the [customer’s] ethnicity. Different parts of the world have different levels of superstition. In China, it’s very much more superstitious environment and I think it’ll take us a lot longer to recover there. In Australia it is a much more robust environment, but we still have to demonstrate to them you are a safe airline, you’re reliable you’ll be around and need to convey that message.
Travel Today: Final remarks?
Dunleavy: It will take time for people to regain the customer confidence. We can talk to the trade and they can talk to the consumers, but it will take time. I want members of our airline to start talking, but I also want members of the government to start talking. Not only are they flying with us, they are flying with their families. It’s better for other people to speak for us rather than just corporate speak from me. If I have other people to speak out and demonstrate they are flying with us, that’ll start to build confidence – but it will take time.
If you missed part one of this interview click here.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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