Wednesday, March 28, 2012

Air Asia Paid MAS for Uplift or Bailout?

The Star reports a MAS statement, "MAS paid to uplift AAX-ed passengers"

Relevant excerpts and my comments -
Malaysia Airlines has received a prepayment of RM20mil in cash from AirAsia X (AAX) to uplift passengers on four routes that the low-cost airline had axed.

Yesterday, the national carrier entered into a Re-Accommodation Agreement (RA) with AAX and would use its excess capacity to fly AAX’s passengers.
Comment: When was it paid? If the RA was signed only yesterday, isn't that putting the cart before the horse?
MAS said economy and premium class passengers holding confirmed AAX tickets issued before Jan 13 on the four routes would be transferred for travel on MAS between March 28 and Oct 27.
Comment: MP Wee Choo Keong had highlighted a free ride for Air Asia issue and provided with a screenshot.

I have highlighted the date. The MAS statement says "AAX tickets issued before Jan 13 on the four routes would be transferred for travel on MAS between March 28 and Oct 27" and the screenshot shows 3 March 2012.

Is MAS telling the truth? My comment earlier asking when was the prepayment received is important because it would determine YB Wee's allegation.

The following highlight from the MAS website (date undetermined) would also corroborate YB Wee's allegation if the date of prepayment from Air Asia postdates the flight or flights -
c) Due to the volume of bookings involved, AirAsia X is working with Malaysia Airlines to process the various passenger bookings in batches for the issuance of fresh e-tickets and priority is given to bookings with earlier travel period. AirAsia X is then expected to transmit these Malaysia Airlines e-tickets to the passengers concerned.
It added that the re-accommodation of passengers is an industry practice whereby airlines support each other to minimise disruption to passenger travel arrangements
Comment: From a limited understanding, Re-accommodation is a normal practice but due to cancellations of flights for various reasons and not for cancelled routes altogether. Relevant link "Sabre Reaccommodation Manager" here - "Protecting revenue and customer loyalty. You can promptly take care of your most important customers, preserving customer loyalty and protecting current and future revenue."

Is it really a Re-accommodation Agreement or a bailout?

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