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27 January 2014, Subang: Malaysia Airlines will be suspending its flights into Los Angeles following a route rationalisation exercise to stem losses. The route rationalization exercise takes effect on 30th April 2014.
According to Malaysia Airlines Group Chief Executive Officer, Ahmad Jauhari Yahya said, "Whilst Malaysia Airlines has a long history in Los Angeles, this route is no longer economically viable. The factors contributing to this negative situation today include over capacity and competition resulting in lower yields, high cost of operating the B777 aircraft, and pressure from continued increases in fuel costs. These are adding further pressure to the expenses of Malaysia Airlines group, which we are continuously evaluating."
This route rationalisation is expected to have minimal impact on Malaysia's position as a top tourist destination in Asia as the national carrier will work aggressively with its code share and oneworld partners.
Malaysia Airlines continues to promote connectivity between Malaysia, United States of America and other key international destinations as well as contribute towards the overall efforts by the various authorities to increase tourist arrivals to Malaysia. This will allow Malaysia Airlines to better manage and optimise resources beyond existing gateways in Asia and Europe.
Currently, the airline is offering seamless one-stop air connectivity between Kuala Lumpur and several major cities in the United States of America (USA) through a code-share arrangement with American Airlines and Japan Airlines, its partner airlines in the oneworld alliance. Among the connection is between Kuala Lumpur and the US Cities of Atlanta, Boston, Washington, Houston, Minneapolis, Portland, Seattle, San Francisco, Las Vegas, San Diego, Honolulu and Raleigh via Europe and Japan.
Concurrently, Malaysia Airlines will focus on Asia where the demand outlook is strong, fuelled by a growing middle class and increased global and intra-regional trade. The national carrier will thus increase frequencies to key regional cities to benefit from the strong growth in regional demand.
The impact of the above rationalisation on Malaysia Airlines’ cargo operations will be minimal as the national carrier continues to maintain its key cargo destinations in the United States.
Malaysia Airlines regrets for the inconvenience to passengers as a result of these changes and assures that it will honour all forward bookings ticketed to date on the affected route. The Company will make alternative carrier arrangements to ensure minimum discomfort to passengers.