Mar 2003 - Malaysia Airlines’ current network strategy is moving focus to the Asia Pacific. The inter Asia passenger flow had registered a 3.9% increase in early 2002. With the long-term annual GDP growth forecast at 6.2% compared to the world average of 3.1%, the prospects look good.

The plan for Malaysia Airlines is to build KLIA as the primary hub supported by secondary hubs in East Malaysia and Northern Peninsular Malaysia. The location of these secondary hubs is strategic from both commercial and socio economic viewpoints.

Kota Kinabalu and Kuching are on the doorstep of newly affluent neighbours - the emerging dragons of Asia. They are also natural gateways to the vast and populous hinterland of the BIMP - EAGA region, and are well positioned to tap the natural traffic flow in terms of intra Asia travel as well as for the external long haul flights. Malaysia Airlines believe the creation of secondary hubs in these locations will increase the overall traffic flow, bring added tourism revenues, and accelerate the States’ economic development and integration in the region.

The creation of secondary hubs in East Malaysia will be done in stages. The phased implementation includes increasing frequency between KLIA and these secondary hubs as well as introducing wide body services. This will enhance the product offering to the customers and is key to Malaysia Airlines’ competitive position in the industry.

The phased implementation will also include linking the secondary hubs to the Orient such as Hong Kong, Canton, Shanghai, Taipei, Kaohsiung, Seoul, Tokyo, and so on. Some of these flights will be directly operated from Kota Kinabalu, and some will originate from Kuching through Kota Kinabalu. The phased implementation also includes connecting certain destinations within the BIMP EAGA Region such as Balikpapan and Manado.

Malaysia Airlines would like to acknowledge the support received from the Ministry of Transport and the National and State Tourism Boards without which the proposed network plan would not be possible. In the case of Kota Kinabalu, Malaysia Airlines believe that it has great potential as a secondary hub that will serve to promote KLIA and spur traffic growth in the region. Besides its strategic location, Kota Kinabalu itself has its own intrinsic attractions which Malaysia Airlines is confident will encourage and enhance tourism flow into Malaysia.

For more information on this release, media members may contact:
Jacqui Chang (60) 3 2165 5140 (60) 19 231 0028
Elizabeth Chong (60) 88 203 426 (60) 19 862 7058
Issued by :
CORPORATE COMMUNICATIONS DEPARTMENT,
MALAYSIA AIRLINES, KUALA LUMPUR

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