MAS gets RM20m to ‘re-accommodate’ AirAsia X passengers for cancelled routes

UPDATED @ 09:44:45 PM 27-03-2012

By Shazwan Mustafa Kamal

March 27, 2012

KUALA LUMPUR, March 27 — Malaysia Airlines said today it has already earned RM20 million to re-accommodate AirAsia X’s passengers who have purchased tickets for recently cancelled routes — Mubai, Delhi, London and Paris.

The national carrier said it entered a re-accommodation agreement (RA) with AirAsia X, which will ensure a flight transfer for economy and premium class passengers holding confirmed AirAsia X tickets issued before January 31. The flight transfers would take place between March 28 to October 27 this year.

Under the terms of the RA, MAS will receive upfront cash payments or pre-payments on tickets for the re-accommodated passengers before departure and that to date,it has received a prepayment of RM20 million in cash.

“Malaysia Airlines benefits as it is able to achieve higher passenger numbers on its flights which would be incremental to its normal load patterns. Hence, the related revenue from this arrangement is pure incremental revenue for the airline and would significantly contribute to the profitability of Malaysia Airlines,” said a statement from MAS this evening.

The statement added that the new arrangements were decided after considering excess seats available and agreed costs, and denied that the deal would be unfavourable to the national carrier.

“Recent reports that Malaysia Airlines may have re-accommodated AirAsia X passengers without payment or at rates unfavourable to the national airline are unfounded and untrue,” it said.

The Malaysian Insider reported last December plans by AirAsia X to stop its popular budget flights to London, Paris, Delhi and Mumbai due to mounting losses. The long-haul affiliate of AirAsia also announced last week that it would stop flights to and from New Zealand by the end of May.