Malaysia Airlines cuts network capacity by 20% amid shortages

Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, announced a 20% reduction in network capacity across its airlines for this year due to shortages in planes, labour, and parts.

This decision affects domestic flights and routes in Southeast Asia, North Asia, Australia, New Zealand, mainland China, South Asia, and the Middle East.

The group, which also includes Firefly and Muslim pilgrimage service provider Amal, highlighted the necessity of this decision to maintain credible flight schedules and prioritise customer experience, said a MAG spokesperson.

“While it is a difficult decision, our focus is to prioritise customers first, ensuring we can deliver credible flight schedules and ensure the best possible customer experience moving forward.”

Earlier this month, MAG announced a temporary reduction in flights across all its carriers until December after experiencing several service disruptions. This week, Malaysia’s civil aviation regulator shortened Malaysia Airlines’ air operator certificate to one year from three years.

The decision followed an investigation revealing significant technical issues, including a shortage of skilled labour and mechanical parts at the state carrier.

MAG is committed to working closely with regulators and manufacturers to resolve these operational challenges and ensure the timely delivery of spare parts.

The global shortage of parts has also delayed the delivery of new aircraft, complicating MAG’s flight planning. The group has received only four out of the 13 Boeing 737-8 aircraft expected this year.

Similarly, of the four Airbus A330neo planes scheduled for delivery in 2024, only three will be received by the end of the year.

MAG’s proactive measures aim to address these challenges and stabilise operations while continuing to deliver quality service to its customers, reported Bangkok Post.

In related news, Vietnam Airlines has emerged as the world’s best-performing airline stock in 2024, with a 179% surge driven by a travel demand resurgence. Breaking a four-year loss streak, it posted a significant first-quarter profit.