Malaysia Airlines eyes greater reach in China with new routes, fleet revamp
"Our Destination 2030 fleet plan will power this expansion," said Datuk Captain Izham Ismail, group managing director of MAG, adding that the group will continue to evaluate its future fleet options, including aircraft from Commercial Aircraft Corp of China Ltd, manufacturer of narrowbody aircraft C909 regional jet and C919.
As part of its fleet modernisation plan, the group recently acquired an additional 18 Boeing 737-8 aircraft, in addition to 12 Boeing 737-10 as part of phase two of its narrowbody fleet renewal.
MAG will gradually phase out the older generation Boeing 737-800 aircraft, aiming for a modernised narrowbody fleet of 55 Boeing 737-8 and 737-10 aircraft by 2030.
With MAG introducing new aircraft for regional sectors and deploying wide-body aircraft on longer sectors, he said these new generation jets will deliver superior fuel efficiency, enhanced reliability and greater comfort, enabling the company to serve more Chinese destinations at optimal frequency.
Malaysia Airlines currently operates to four cities in the Chinese mainland, namely Beijing; Shanghai; Guangzhou in Guangdong province; and Xiamen in Fujian province. The consistent demand from both inbound and outbound travelers has supported a robust 80 percent load factor across China routes in the first quarter, signaling a strong recovery in traffic and business momentum.
Highlighting that the new visa waiver policy between China and Malaysia has further unlocked significant travel demand, he said that MAG will scale its mainline network to key markets across the Association of Southeast Asian Nations, Australia, New Zealand and South Asia, solidifying Kuala Lumpur's role as a gateway to Asia and beyond, facilitating effortless one-stop transit.
To seize more market share, the company has strengthened its customer service teams by adding more Chinese-speaking staff and enhancing its presence in China through strategic partnerships.
"By leveraging the strength of our partners, we are able to provide our passengers with greater flexibility, convenience and reach across the region," he added.
For instance, MAG has expanded its codeshare agreement with China Southern Airlines, offering broader access to key cities across China. Its long-standing partnership with China's Xiamen Airlines also continues to provide passengers with convenient, single-ticket access to a wider domestic network, including second and third-tier cities.
Driven by the goal of meeting Chinese travelers' preferences, MAG has embarked on a wide-ranging digital transformation, combining technology and enhanced services, the executive said.
For example, Malaysia Airlines has been actively engaging with existing and potential clients on popular Chinese social media platforms such as WeChat, Weibo and RedNote, also known in China as Xiaohongshu.
Despite industry headwinds in 2024, MAG posted a profit of $12.35 million last year, showing enhanced financial resilience.
The group currently operates a fleet of 114 aircraft. It has an existing order for 25 Boeing 737-8 aircraft through a long-term lease with Air Lease Corp, with 11 already delivered and the rest scheduled for delivery by 2027. In addition, the company is advancing its widebody renewal with an order for 20 Airbus A330neo aircraft, three of which have already been delivered to date.
Boosted by deepening political and business ties, visa-free policy and the tangible growth of the Belt and Road Initiative, China and Malaysia will accelerate collaboration across both emerging and traditional sectors, including people-to-people exchanges, green technology and infrastructure connectivity in the years ahead, said Zhang Jianping, deputy director of the academic committee at the Chinese Academy of International Trade and Economic Cooperation in Beijing. - China Daily/ANN
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
4 hours ago
- The Star
Nvidia denies back-door features in its H20 chips after Beijing raises security concerns
Nvidia said its chips had no 'back doors' after China's cyberspace regulator interviewed company representatives over alleged security risks associated with its H20 chips, which were tailor-made for Chinese customers, although it remains unclear what impact Beijing's mistrust of the US firm will have over time. 'Cybersecurity is critically important to us,' an Nvidia representative said in an email to the South China Morning Post on Thursday night. 'Nvidia does not have 'back doors' in our chips that would give anyone a remote way to access or control them.' The statement was in response to a regulatory move by the Cyberspace Administration of China (CAC), the agency responsible for the country's cybersecurity. The Chinese regulator said on Thursday that it had summoned and interviewed Nvidia regarding the potential tracking and remote control functions of its H20 chips, a surprise move as Nvidia had just received the green light from Washington to export the chips to clients in China. Nvidia's shares were down 0.8 per cent on Thursday in New York. The latest development highlights the challenges faced by Nvidia, the world's most valuable company in terms of market capitalisation, in trying to please both Washington and Beijing amid intensifying US-China rivalry in artificial intelligence and hi-tech. While China needs Nvidia chips to build out its computing infrastructure, Beijing remains committed to the long-term goal of tech self-sufficiency by reducing its reliance on imported American equipment and technologies. In the latest example of that, a group of Chinese semiconductor and AI companies – including Huawei Technologies, Cambricon Technologies and Moore Threads – formed an alliance to push for the adoption of locally developed processors for AI projects. China's cyberspace administration did not specify the source or evidence for its concerns about back-door security threats associated with Nvidia chips. In May, a bipartisan group of US lawmakers introduced a bill that would require makers of AI processors to incorporate tracking technology in their chips before export. The proposal aimed to address reports of US export-controlled AI chips being smuggled into China via third countries. But Nvidia has never said that its H20 chips have such tracking functions. The summoning of Nvidia was the latest example of the long-lasting mistrust between Beijing and Washington over the other's tech hardware. The US has banned the use of Huawei gear in the American telecommunications network, while new guidelines from the administration of US President Donald Trump implied that the use of Huawei's Ascend AI chips 'anywhere in the world' could be a violation of US export controls. For its part, China accelerated the process of replacing imported technologies in its key infrastructure facilities about a decade ago, after former US National Security Agency contract employee Edward Snowden exposed the global spying practices of the US. In May 2023, the CAC said products from another US chip giant, Micron Technology, failed a national security review, resulting in a sales ban of its products to key infrastructure operators in China. - SOUTH CHINA MORNING POST
The Star
4 hours ago
- The Star
China's customisable robot market may be about to take off
A store near a bustling shopping centre in the southern Chinese city of Shenzhen feels more like a small robotics fair, with all kinds of robots – from humanoid assistants to food delivery bots and massage machines – quietly drawing curious eyes. Amid the excited chatter of children accompanying their parents, company owners, investors and tech enthusiasts busily exchange contact details and discuss collaboration. Some hope to place their own robots in the newly opened 60 square metre (646 sq ft) store; others are looking to make a purchase. China's robotics industry has expanded rapidly in recent years and is now eyeing vast consumer and service markets – a familiar playbook for the country's manufacturers. The Future Era store, which opened in Shenzhen's Longgang district on Monday, bills itself as the world's first '6S' robot store – offering leasing and customisation services in addition to the traditional '4S' retail staples of a showroom, sales, spare parts and customer service. Customers can browse the many models on display and then choose to buy, rent or even build their own by selecting components that suit their needs. The store showcases robots from companies such as Hangzhou-based Unitree Robotics, and Shenzhen's Engine AI and Leju Robot, with daily rental prices ranging from around 5,000 yuan to 20,000 yuan (US$695 to US$2,781). Instead of paying robot makers hefty agent fees, it adopts a profit-sharing model, splitting revenues 50-50 with the manufacturers, deputy manager Zhang Shuai said. Customers can receive the robots they order in less than 10 days, he said, even when modifications are required to meet specific needs. 'This is currently one of the most efficient ways to connect robot makers with customers,' Zhang said. 'People can come in, see and interact with the products in person – or just stumble in out of curiosity and discover the latest models on display for potential collaboration.' Amid intensifying tech rivalry with the United States, China's robotics industry has emerged as a key pillar of Beijing's broader strategy to seize an early edge in emerging technologies and position itself at the forefront of the next global wave of innovation. Leveraging its manufacturing scale, rapid iteration cycles and well-developed supply chains, China's robotics industry is rapidly scaling up, poised to tap into a vast domestic market and accelerate real-world adoption. China was home to more than 741,700 robotics-related companies last year, Shenzhen Daily reported, with many of the sector's leading players moving on to mass production. Unitree shipped over 20,000 robot dogs last year, securing nearly 70 per cent of the global consumer-grade legged robot market, according to the Gaogong Industry Research Institute, a market research firm based in Shenzhen. Zhang said Future Era had received orders worth more than 200,000 yuan in its first week of operation. With the robotics industry booming, every part of the value chain holds potential While Shenzhen, in Guangdong province, is a renowned innovation hub, similar stores are in the pipeline across the country – some backed by private investors eyeing the sector's potential, others supported by local governments keen to promote emerging industries. 'It's a real business opportunity,' said Duan Lixiao, who travelled from Hainan province to visit the Future Era store. She has already secured a location in a shopping centre in Haikou, Hainan's provincial capital, hoping to bring the concept back home. 'With the robotics industry booming, every part of the value chain holds potential,' Duan said. Lin Hong, a marketing executive at a robotics company in Guangzhou, Guangdong's provincial capital, said many local governments across the country were planning to assist in the setting up of robotics stores. He said 'more than 10 local governments' had approached the company about placing its robots in stores they planned to launch, citing interest from provinces such as Sichuan, Shanxi and Hebei. Among the agreements signed by Lin's company is one with a store in Beijing that is expected to open this month. Zhang said Future Era received strong support from the district government, with officials helping it connect with robot manufacturers and facilitating collaboration. The store had signed agreements with more than 50 robot makers and component suppliers, he said. 'We're planning to open more than 50 stores like this across the country,' Zhang said. 'People from various provinces have already approached us, expressing interest in becoming franchise partners.' - SOUTH CHINA MORNING POST
The Star
6 hours ago
- The Star
What are China's most dynamic cities? New report gives surprising answer
China's most dynamic local economies are no longer metropolises like Beijing and Shanghai, but lesser-known cities including Hangzhou and Hefei, according to a new report by the Economist Intelligence Unit. The findings reflect a growing shift in China's economic landscape, as smaller cities emerge as a main engine of growth due to their strength in advanced manufacturing, clean energy and other emerging sectors. The annual report by the EIU ranks Chinese cities in terms of their growth potential, with the eastern city of Hangzhou – home to e-commerce giant Alibaba, artificial intelligence start-up DeepSeek, and several other major technology companies – topping the list for the fifth consecutive year. It was followed in the ranking by Hefei – an eastern city known for being a hub for semiconductor and electric car companies – and the southwestern industrial powerhouse of Chengdu. Shenzhen, often dubbed China's Silicon Valley, placed fifth, while Beijing, Guangzhou and Shanghai all failed to make the top 10. The results 'capture the rise of manufacturing and the decline of the service sector' in China, economists Xu Tianzeng and Su Yue wrote in the report, as a prolonged property downturn drags down consumer spending and the economy continues to rely on strong production. Most of the top-ranked cities have benefited from China's advanced manufacturing boom, recording strong economic growth and attracting significant population inflows over the past two years. According to the report, Hangzhou has made a strong recovery from Beijing's regulatory crackdowns on the tech sector launched in 2021. 'The city has since reasserted its leadership in China's artificial intelligence race, driven by major players like DeepSeek, while also leveraging its strengths in advanced manufacturing,' the authors wrote, noting that Hangzhou has one of the most robust fiscal positions of cities nationwide. Hangzhou is home to China's 'six little dragons' – a group of high-profile tech start-ups including DeepSeek, humanoid robot maker Unitree Robotics and Neuralink rival BrainCo. Local authorities in Zhejiang, the eastern province where Hangzhou is located, have put a strong emphasis on supporting hi-tech companies. Last week, the province released a draft action plan for boosting local innovation, which set a target that over 80 per cent of its new listed companies should come from the tech sector by 2027. Meanwhile, Hefei and Chengdu have both 'made bold, strategic investments in foundational technologies' to drive their development, the report said. Hefei has invested heavily in CXMT, a major producer of dynamic random access memory (DRAM) chips, which is now preparing for an initial public offering. The company is widely regarded as China's best hope of competing with South Korea and the United States in the global memory chip market. Chengdu has also invested in the semiconductor company Hygon, a joint venture with US chipmaker AMD. 'These ventures have not only generated substantial returns for the two cities, but have laid the groundwork for broader industrial ecosystems with surrounding cities,' the report's authors said. They noted that the broader metropolitan area covering the core cities of Chengdu, Deyang, Meishan and Ziyang logged an average growth rate of more than 7 per cent in the first quarter of 2025 – making it one of the country's fastest-growing regions. Similarly, China's clean energy push is powering significant growth in smaller cities with established manufacturing bases for renewable energy technologies, according to the report. Xinyu and Yichun in the eastern Jiangxi province, for instance, have seen their growth boosted by rising demand for lithium-rich ores from the electric vehicle and energy storage sectors. Meanwhile, Jinchang in the northwestern Gansu province recorded an impressive average annual growth rate of 12.9 per cent between 2022 and 2024, as demand for renewable energy infrastructure boosted the city's non-ferrous metals industry. But smaller cities that are riding high thanks to the green transition also face 'vulnerabilities', the report noted. 'These include exposure to commodity price cycles, external trade shocks and spillover effects from overcapacity rectification in downstream industries,' it said. - South China Morning Post
