Malaysia Airlines has cut about 20% of its network as it blames longer-than-expected maintenance time and delays in new aircraft deliveries for an ongoing operational meltdown.
Detailing the extent of its high-profile operational meltdown, Malaysia Airlines says it expected to take delivery of 17 new aircraft – comprising 13 Boeing 737 Max 8s and four Airbus A330neos – this year, but has received less than half of the new aircraft.
For new 737 Max 8s, the carrier has received just four examples. Boeing’s production issues cloud the outlook for delivery timelines.
On the Airbus side, plans call for three A330neos to arrive this year.
Meanwhile, airline parent Malaysia Aviation Group (MAG) says it made the “difficult decision” to cut one-fifth of its schedule so as to “deliver credible flight schedules”.
The cuts will impact the group’s three airlines – Malaysia Airlines, low-cost carrier Firefly and religious charter unit Amal – and affect most of its network, except operations to Europe.
The cuts were first announced on 24 August, though MAG at the time did not reveal the full extent. It comes as the airline group suffered a series of well-publicised operational issues, with at least two A330s suffering pressurisation issues and a third encountering engine problems.
This has led to increased scrutiny from regulators, with a surprise audit in June revealing, among other things, a shortage of components and skilled MRO workers.
The Civil Aviation Authority of Malaysia has consequently cut the validity of the carrier’s AOC from three years to one, with Malaysia Airlines having to also prepare a mitigation plan to address its issues.
In its latest statement, MAG says a global shortage of spares has led to “longer turnaround time” in engine overhauls, which is currently being outsourced to third-party providers.
MAG chief Izham Ismail says: “[We] are working closely with our stakeholders, including regulators and OEMs, to effectively address operational challenges and ensure timely and reliable delivery of spare parts – encompassing adequate and high-quality spares and a robust aircraft maintenance programme.”
The group confirms it was faced with manpower attrition - an issue flagged by regulators - in the wake of “new MRO players…entering the Malaysian market”.
To this end, MAG says it is working to “sustain a strong talent pipeline” by working with partners to “augment our manpower”. At the same time, it has improved pay packages in a bid to retain talent.
