Interview: Malaysia Airlines – The Unanswered Questions
![Interview: Malaysia Airlines – The Unanswered Questions](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
To say Malaysia Airlines has had a turbulent year would be a gross understatement. The airline suffered two major incidents causing the loss of over 500 lives within a matter of months. With MH370’s whereabouts still unknown, the carrier has struggled to regain customer confidence globally with some markets taking longer to bounce back. However, in Australia, travellers are taking advantage of sale fares and the trade is largely the reason why load factors are up, with the airline revealing travel agent bookings contribute up to 70% of its business.
Travel Today speaks to Malaysia Airlines director of commercial, Hugh Dunleavy, during his visit to Sydney, as well as regional senior vice president, PK Lee, on achieving double-digit passenger growth in the Australasian market.
Here's part one of the exclusive interview:
Travel Today: Are you a safe airline?
Dunleavy: Malaysia airlines have had an excellent safety record, we have certifications from UK, Europe, Australia and United States because we maintain aircraft in those jurisdictions. So we don’t just satisfy our own national safety standards, we satisfy international standards as well. So yes, we are very safe.
I know that sounds strange in the light of two major incidents in the same year. For MH370 we still don’t know what happened to that aircraft or where its final location is. For MH17 it was more definitive, it was shot down by a military organisation in the Ukraine. That’s outside the purview of any airline to withstand any such attack. We’re a civilian aircraft; we don’t have anti-missile systems on board.
MH17 were following a flight corridor deemed safe by ICAO. 115 national aircraft a day flew over the Ukraine.
We happen to be at the wrong place at the wrong time. That is a tremendous human tragedy.
Travel Today: What are the implications of the loss of MH17?
Dunleavy: I think there has to be some major outcomes from MH17, and I’ve asked that ICAO [International Civil Aviation Organisation] and IATA [International Civil Aviation Organisation] work together with national governments to improve the designation of safe air traffic corridors, because clearly whatever standards they used to designate as safe were not strict enough. But you also have to get government agencies to be willing to release information [in almost real time] to ICAO. You need to have some real credible evidence, but getting that can be the challenge. Military intelligence is an oxymoron.
It is an industry issue. So I think the outcome of this will be when we implement more secure standards around designating safe corridors; it will be an improvement in the industry overall.
Travel Today: Will Malaysia Airlines rebrand?
Dunleavy: I do not believe so. The reason is Malaysia Airlines is probably one of the best known brands in the world at the moment. Because we’re a national brand – rebranding the airline, renaming the airline – it still will have some reference to Malaysia in it. The minute I do that, people are automatically going to say that’s still Malaysia Airlines rebranded, it’s still the same Malaysia Airlines. That’s going to be the challenge. We’re a national carrier, so to change the national carrier’s name and rebrand it is a bigger challenge. Quite frankly, what would be the benefit of that?
People would say you’re just doing it for commercial reasons and you’re trying to shrug off responsibility and accountability. We are not going to do that, we are an ethical company and Malaysia Airlines will stand by its product and services and we will recover the trust and confidence in this airline.
Travel Today: What plans are in place to actively change your image in the minds of consumers?
Dunleavy: There are a couple of approaches. Tactical advertising marketing campaigns that will trigger and stimulate traffic, however, to rebuild trust and confidence in a brand as a whole, that takes time. We need to continue to operate with excellent on time performance and make sure our safety record is maintained. Yes we are going through a restructuring, but safety is our number one priority and will continue to be so. We will behave ethically and take care of next of kin.
We will make sure we talk to the trade, we engage with the trade at all levels to present the professionalism and consistent quality of product that we offer and our continued investment in these products and services – but that’s going to be long term; a long journey. I think we’ve got a multiple year journey.
As part of the restructuring of the airline, we’re thinking about delisting the airline from December. Then over the next three years we will restructure the airline – it is not just about head count issues, it’s about the business model, it’s about business processes and rebuilding the brand and reputation – and resetting the airline to get it back to profitability and then bring it back to the public domain by relisting on the stock market.
It is over that three period to work hard to regain that trust and confidence that we were previously blessed with.
Travel Today: In a first for the national carrier, will the new CEO be a foreigner?
Dunleavy: I know there’s three or four candidates for the new CEO role, but no one will be told until it’s announced. There are both domestic-Malaysian and international candidates as well.
Travel Today: Are you cutting routes?
Dunleavy: The size of the fleet of the airline is not going to change. We might put out the frequency from one city, but I won’t sit out the aircraft. I am not cancelling any flights at this stage. I may do seasonal schedules but we will be operating in Australia, the Middle East, South Asia, Europe. The size of my wide-body fleet is not changing. We are going to focus on growing in this region, and the regions that are not growing as quickly I won’t expand in those areas.
Travel Today: What are you doing to ensure safety onboard following sexual assault allegations by a passeneger?
Dunleavy: We do not accept any of that type of behaviour. We will not tolerate that. And we will take the appropriate action so those people don’t operate with us again.
We do take very great care in how we recruit people. We will look through our filtering process of how people are recruited.
Travel Today: Load factors, what are they now?
Dunleavy: In Australia and New Zealand load factors are now averaging above 70%, but it’s important to put that in perspective as that is in the face of a 34% capacity expansion in February, so Malaysia Airlines is ahead at the same time last year. I’d like it to be more; we put the extra capacity in as we were responding to demand and expanded accordingly. At one stage we were even looking to put in an A380 but we couldn’t do that because of the bilateral agreement. That’s how strong and big the commitment was to the Australian market.
Travel Today: What about passenger numbers?
PK Lee: We have increased our passenger numbers by 20% to 25% year-on-year. In spite of two the challenges we had, we are still registering growth.
Travel Today: Has your marketing campaigns promoting sale fares fuelled this?
PK Lee: This is a market where competition is very intense. Every airline launches tactical campaigns all the time. We try to be relevant and want to be a leader in terms of launching tactical campaigns to encourage consumers to fly with Malaysia Airlines.
Travel Today: Are you losing market to AirAsia X?
PK Lee: I’m sure we are giving them tough competition. In terms of pricing we are not pricing it with them, but I’m sure we are winning some business as well. We cater for full-service, premiums and corporates. Competition is everywhere.
Travel Today: How's your corporate business?
PK Lee: We’ve increased our corporate accounts actually. The TMCs have done a good job and been very supportive to the extent [they] have got a few more accounts for us. Corporate revenue has increased by 60% year-on-year, showing that confidence is very strong.
Tune in tomorrow for part 2 of this interview – focussing on the trade's impact on the airline's business.
Latest News
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Low-cost Indian carrier SpiceJet continues to burn cash
It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024
AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Journey Beyond launches first brand-led campaign during Paris Olympics
Journey Beyond is pushing the boundaries. On The Ghan, you can't even see them!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Ascott Australia partners with Hotels for Trees
Hoteliers can take a 'Lyf' out of this book and improve their green credentials.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Victoria’s TAC Top Tourism Town Award winners for 2024
Keep looking in our own backyard. There are plenty of places to go.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Uniworld partners with Camilla Franks with Egyptian-inspired collection
We are in de-Nile about making puns combining Crocs and leopard prints, given this luxe partnership.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Aussies at Paris Olympics anxious about travel risks, with incidents already recorded
Fortunately one of our biggest gold medal hopes still held onto his pedals.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Banyan Tree Seaview Villas elevates Laguna Lang Co
If you've ever played golf in the tropics, start early. LIke way early. It's hot! Damn hot.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Silversea taps Barbara Biffi as senior vice president for global sales
Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Wendy Wu unveils new Japan travel brochure and itineraries
Get outta town! Off-beat Japan will be a lot less congested we figure than the usual tourist hotspots.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
UK and Europe event organisers look to venues with sustainability integrity, ICC Sydney survey finds
Here in Sydney, you can even eat the table centrepieces. Although we advise they be cooked first.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Renos Rologas new general manager ANZ for FCM Travel
Two decades in the travel game! Let's hope Renos is in for the long haul at FCM.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Untamed Escapes to offer Cultural Day Tour from Port Lincoln in partnership with Maba Idi
International visitors travel thousands of kilometres for this experience. Time to share.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Luxe Finish Line Penthouses offer the best vantage point for the finish of the Sydney-Hobart
Long have we been following the yachts leavings Sydney Harbour and one day, we will see the finish, from this place!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
In a busy world, proximity to nature is the new luxury
Forget Raffles, treat your nearest and dearest to a stay at the local campsite. They'll be super close to nature.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Circular Quay welcomes new Korean dining experience to Sydney Place
We once took Korean-American chef David Chang around Koreatown, Eastwood. Not happy about driving rain, loved the food.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
MSC Cruises unveils a new outdoor kid-friendly attraction on World America
Drop your kid down the jaws of a shark and they come out 11 decks below. Sounds good to me.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy
Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Australian travellers abandon peer-to-peer stays and gravitate back to big hotels, survey finds
Doom scrolling Airbnb for the best-possible stay options two days out from departure was wearing us down, apparently.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Quark Expeditions launches the Ultimate Summer in the Arctic sweepstakes for travel advisors
Summer in the Arctic still means it's freezing. But hopefully a winning sweepstakes tickets will warm your cockles.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘I bet it smells weird’ – Internet divided over floating restaurant in China
I you are still feeling peckish at the end of your meal, their fish tank is full. But can you eat koi?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Turn up in the Northern Territory this Spring’ campaign deals
Agents and airlines get all hot and sweaty over these enticing deals. Or did someone just turn the air-conditioning up?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Like nothing on earth’: Saudi Arabia’s new Treyam resort set in a Star Wars-style landscape
As long as Jar Jar Binks is not there, we would like a seat at the Mos Eisley Cantina please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Raffles Hotels and Resorts is set to open in Tokyo in 2028
Time to get your vision boards at the ready! Raffles is landing in Tokyo!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘A true honour’ – Andrew Stark wins Flight Centre Director’s Award for the second time
Congratulations Andrew! If you're a fan of British reality TV you might notice a familiar face.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Club Med debuts travel agent portal 2.0 with bonus prize for tops sales
See those people by the pool. That could be you. Start selling through the portal people!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Envoyage announces 2024 Australian Icons and rewards event in the Maldives
We were going to edit our name into the list but we chickened out.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
HIF Global signs collaboration agreement with Airbus on eFuels
We know it's a good thing but can a jet fuel geek out there send in a diagram explaining this please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Crystal announces release dates for 2026 itineraries
If you have started collecting 2026 itineraries then here is another one for you.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Cairns Airport unveils display of support for FNQ youth
If you were craving some winter sun now you have a cultural reason for booking a flight to Cairns.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Viking announces six new cruise itineraries
Now's the time to start learning Putonghua, Nihongo and Lhasa. Or maybe even know where these are spoken.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Join Qatar Airways, Celebrity Cruises & Klook – Showcase Your Brand at Click Frenzy Travel August 2024!
Clicking calmly will also be welcome when it comes to this particular deal. Click calmly here to find out more.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
InsideAsia Tours launches new incentive that doubles agent commission
Double commission! We like the sound of that. Hope their system doesn't crash as a result.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Push to revive Parramatta’s iconic Roxy Theatre into entertainment destination
Long have we wished for this iconic heritage cinema to be revived as a tourist destination. Still waiting.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Qatar Airways signs an expansion to Boeing 777-9 aircraft order
Known as a quiet rural town in England, the entire global aviation industry now has its eyes on Farnborough.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Flight Centre shares down following revised profit guidance
The stock market moves fast. What will the rest of the week hold for Flight Centre?