At every major aviation show, there are a slew of announcements, often stage-managed to garner maximum publicity on the sidelines of the event. Last week’s LIMA 23 event in Malaysia had its share, including six from Malaysia’s recent entrant MYAirline.
The Langkawi International Maritime and Aerospace Exhibition (LIMA) is held every two years, pandemics permitting, on the Malaysian island of Langkawi. It’s a pre-eminent Asian aerospace gathering, and as a house airline, it was logical that MYAirline took the chance to announce six agreements during a Memorandum of Understanding (MoU) signing session on the conference.
MYAirline takes center stage
The six MoUs covered a spread of financing and support services across the airline’s fleet of seven Airbus A320-200 aircraft. They covered aircraft leasing agreements with 4 lessors, an A320 wheel and brake component maintenance program with SIA Engineering Company and an exciting recent three way partnership with Menzies Aviation for ground handling services.
Photo: Markus Mainka | Shutterstock
CEO Rayner Teo described the signings as a pivotal moment in MYAirline’s journey, adding:
“These partnerships not only reflect our vision for growth but additionally underscore our commitment to delivering unparalleled customer experiences and operational excellence.
“With just six months of operation, MYAirline is poised for an exciting future, and we stay up for serving more passengers and sharing more initiatives in the times to come back.”
MYAirline has secured leasing agreements with several aircraft lessors, including Aircastle, Avolon, Genesis and SMBC Aviation Capital. The low-cost carrier (LCC) said the strategic move “will bolster the airline’s fleet, leading to a complete of 17 aircraft at the top of 2023, valued at a combined $450 million.”
Ground services are vital to all airlines
A fleet of 17 aircraft demands reliable ground handling services if the LCC goes to maintain its aircraft on schedule and satisfy customers. The standard solution for an LCC is to interact a third-party provider, but MYAirline has gone a step further by forming a three way partnership with global aviation services provider Menzies Aviation.
The brand new MYMenzies three way partnership (JV), majority owned by the airline, will provide ground services at Kuala Lumpur International Airport (KUL), initially serving MYAirline at Terminal 2. The airline believes that by integrating ground handling services it is going to be higher placed to deliver seamless and superior passenger experiences, with the JV operating under the Menzies Aviation brand.
Photo: MYAirline
This might be the primary location for Menzies in Malaysia, and the corporate is trying to capitalize on growth and expansion opportunities because the nation continues its COVID-19 recovery. The Malaysian business can be one other step by Menzies to determine a bigger footprint in Southeast Asia because it complements the prevailing ground services operations in Indonesia, China-Macau and Thailand.
After all, cost is a significant driver for each LCC in its decision-making, and the airline sees the JV as a very important strategic element in its operations. Chief operating officer Stuart Cross touched on this when he said:
MYAirline currently operates on nine routes, including eight domestic routes to and from Kuala Lumpur and an intra-Sabah route. It launched flights on December 1st, 2022 and since then has carried greater than 800,000 passengers, and next month will start services to Bangkok, which is MYAirline’s first international destination.
Is it an excellent idea for an airline and ground handler to affix forces? Tell us within the comments.