Malaysia Airlines Prepares to Establish Secondary Hubs

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 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 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 said it believes that Kota Kinabalu 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.