Malinda plans to introduce 737 Max on KLM to TRZ
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n this half of the report CAPA will examine in detail how the 737 MAX 8 fits into the Malindo network and should improve its performance on several medium haul routes.
Tiruchirappalli and Kochi could be next for the 737 MAX
Routes to secondary cities in India would be logical routes for the all economy 737 MAX as they also have limited premium demand. Tiruchirappalli would particularly be appealing as Malindo operates three daily flights to Tiruchirappalli, making it easy to transition one or potentially two frequencies from the 737-800 to 737 MAX 8 while maintaining a small premium presence in the market.
Malindo increased Tiruchirappalli from 18 to 21 weekly flights in Apr-2017. At almost the same time AirAsia added a fourth daily flight from Kuala Lumpur to Tiruchirappalli. A switch to the all economy MAX 8 would enable Malindo to compete better in this growing and relatively large ethnic market (a large portion of the Indian community in Malaysia has ties to this part of India).
AirAsia and Malindo both offer return fares of only slightly more than USD100 in the Kuala Lumpur-Tiruchirappalli market. They are the only nonstop competitors, but the relative high level of capacity means the competition is cut throat.
Kuala Lumpur-Kochi would also be a logical route for the all economy aircraft, given that it has limited premium demand and AirAsia is the only nonstop competitor. Malindo decreased Kochi from 11 to seven weekly flights effective 15-May-2017 – an indication that the route may be struggling with the current two class configuration. AirAsia operates the route with two daily flights. Fares on Kuala Lumpur-Kochi are similar to those on Kuala Lumpur-Tiruchirappalli, starting at slightly more than USD100 return on both AirAsia and Malindo.
Malindo’s other two secondary destinations in India are served less than daily, making it a bit harder to switch to the MAX 8 if Malindo wants to maintain a premium product on some frequencies. Amritsar is currently served with five weekly frequencies and Trivandrum with four weekly flights. Malindo is the only airline operating nonstop flights in these smaller markets.
Malindo also serves Delhi and Mumbai, but it should maintain these services with two class aircraft as there is more premium demand in the metros. There are also seat capacity limits on routes to Indian metros under the India-Malaysia bilateral, which would force Malindo to reduce frequency if it goes with higher density aircraft. Malindo currently serves Delhi with 11 weekly flights and Mumbai with eight weekly flights.
Source:https://centreforaviation.com/insights/analysis/malindo-air-part-2-new-all-economy-737-max-fleet-results-in-more-direct-competition-with-airasia-345060
n this half of the report CAPA will examine in detail how the 737 MAX 8 fits into the Malindo network and should improve its performance on several medium haul routes.Tiruchirappalli and Kochi could be next for the 737 MAX
Routes to secondary cities in India would be logical routes for the all economy 737 MAX as they also have limited premium demand. Tiruchirappalli would particularly be appealing as Malindo operates three daily flights to Tiruchirappalli, making it easy to transition one or potentially two frequencies from the 737-800 to 737 MAX 8 while maintaining a small premium presence in the market.
Malindo increased Tiruchirappalli from 18 to 21 weekly flights in Apr-2017. At almost the same time AirAsia added a fourth daily flight from Kuala Lumpur to Tiruchirappalli. A switch to the all economy MAX 8 would enable Malindo to compete better in this growing and relatively large ethnic market (a large portion of the Indian community in Malaysia has ties to this part of India).
AirAsia and Malindo both offer return fares of only slightly more than USD100 in the Kuala Lumpur-Tiruchirappalli market. They are the only nonstop competitors, but the relative high level of capacity means the competition is cut throat.
Kuala Lumpur-Kochi would also be a logical route for the all economy aircraft, given that it has limited premium demand and AirAsia is the only nonstop competitor. Malindo decreased Kochi from 11 to seven weekly flights effective 15-May-2017 – an indication that the route may be struggling with the current two class configuration. AirAsia operates the route with two daily flights. Fares on Kuala Lumpur-Kochi are similar to those on Kuala Lumpur-Tiruchirappalli, starting at slightly more than USD100 return on both AirAsia and Malindo.
Malindo’s other two secondary destinations in India are served less than daily, making it a bit harder to switch to the MAX 8 if Malindo wants to maintain a premium product on some frequencies. Amritsar is currently served with five weekly frequencies and Trivandrum with four weekly flights. Malindo is the only airline operating nonstop flights in these smaller markets.
Malindo also serves Delhi and Mumbai, but it should maintain these services with two class aircraft as there is more premium demand in the metros. There are also seat capacity limits on routes to Indian metros under the India-Malaysia bilateral, which would force Malindo to reduce frequency if it goes with higher density aircraft. Malindo currently serves Delhi with 11 weekly flights and Mumbai with eight weekly flights.
Source:https://centreforaviation.com/insights/analysis/malindo-air-part-2-new-all-economy-737-max-fleet-results-in-more-direct-competition-with-airasia-345060
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