Malaysia Airlines to launch Project Amal by year-end

PETALING JAYA: Malaysia Airlines (MAS) is on track to launch Project Amal by year-end or early 2019, said its group CEO Captain Izham Ismail.
He said it is in the process of applying to the Malaysian Aviation Commission for the air service licence and air operator’s certificate for the new airline and will reveal the name, logo and brand at a later stage.
“As you know, Amal will be a 100% subsidiary of Malaysia Aviation Group (MAG). The progress is good, we are steadfast to launch this new airline earliest in the fourth quarter of 2018 and latest by first quarter of 2019,” he told reporters at a signing ceremony with Andalusia Travel & Tours Sdn Bhd today.
He said Project Amal, which will operate scheduled charters for Haj and Umrah pilgrims, will be funded by MAG. It is not part of Khazanah Nasional Bhd’s RM6 billion turnaround plan.
Izham said it is open to investors in the future but not in the infancy stage as it will have to stabilise the subsidiary first. Project Amal will operate the scheduled charters on six A380s.
Currently, Malaysia Airlines operates scheduled commercial flights to Jeddah once a day using the A330.
Today, the airline signed a three-year agreement with Andalusia to transport Malaysian pilgrims to Medina and Jeddah during the Umrah season beginning August this year till 2021.
Under the agreement, Malaysia Airlines will provide about 200 charter flights using the superjumbo A380-800 aircraft that can accommodate up to 486 passengers. It has prepared 96,000 seats for the collaboration and has committed 65 flights this year alone with over 42,000 seats with Andalusia.
Izham said this is the fourth Umrah season that Malaysia Airlines has been chosen to collaborate with Andalusia. Last season, the airline carried over 29,000 pilgrims.
Andalusia Travel & Tours Sdn Bhd director and legal advisor Ida Riswana Idris said the two parties began its partnership in 2016 and has flown some 70,000 pilgrims to date.
She said the latest agreement, from 2018/2019 till 2021, is for 237 flights valued at RM315 million.
“The capacity that’s available (that we can deploy) to Medina and Jeddah is a maximum of two flights a day, using two A380s. It’s not our limitation, it is the slot limitation in Saudi Arabia,” said Izham.
He said Malaysia Airlines has a capacity of 350,000 seats per year, of which Andalusia has committed 40% which comes up to about 96,000 seats.
“The market is growing and we do realise we need synergies out of Indonesia, China and Thailand. I do invite Andalusia to explore and expand their wings to these countries.
“It’s a market which is not taken seriously before this and Malaysia Airlines has an asset (A380) that can fulfil the mission. We also have the Airbus 330-200 that can support our Umrah programme,” he said.
The agreement with Andalusia will eventually be novated from Malaysia Airlines to Project Amal once the new airline meets all regulatory and licensing requirements in Malaysia and Saudi Arabia.