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Thursday, February 16, 2006

STREAMLINES FUEL SURCHARGE.

MALAYSIA AIRLINES STREAMLINES FUEL SURCHARGE TO SOUTH ASIA AND NORTH ASIA
EFFECTIVE 01 FEBRUARY 2006

Fuel cost continues to remain as the single largest expense item for all
carriers. Malaysia Airlines has been taking measures to mitigate this rise
in cost by streamlining and matching fuel surcharge rates in line with
other airlines.

With effect from 01 February 2006, Malaysia Airlines' fuel surcharge rates
for international travel between Malaysia and South Asia and North Asia
will be streamlined to USD50 per sector.

This will be applied as follows:-

- Ticketing in Malaysia: For travel between Malaysia and South Asian
countries i.e. India, Pakistan, Bangladesh Sri Lanka, Maldives -
from USD18 per sector to USD 50 per sector.

- Ticketing outside Malaysia: For travel between South Asian countries
i.e. India, Pakistan, Bangladesh Sri Lanka, Maldives and Malaysia -
from USD20 per sector to USD50 per sector.

- Ticketing in Malaysia: For travel between Malaysia and the North Asian
countries of China, Hong Kong, and Korea - from USD18 per sector to
USD50 per sector.

- Ticketing in China only: For travel between China and Malaysia,
Malaysia Airlines will continue to apply the current rate offered by
competitors at USD20 per sector.

It is an industry practice among carriers worldwide including those
operating in Malaysia, to collect an administration fee. To date, Malaysia
Airlines has held off charging an administration fee to its customers.

Effective 01 February 2006, Malaysia Airlines will introduce an
administration fee for the issuance of tickets for international travel.

This fee matches the quantum charged by other airlines and is aimed at
partially defraying document/ticket issuance costs, IT costs for internal &
external computer reservations systems (CRS) and global distribution
systems (GDS) as well as related booking and ticketing costs.

The rates are as follows: -

- Travel between Malaysia and Asean countries i.e. Brunei, Cambodia,
Indonesia, Myanmar, Philippines, Thailand, Vietnam and Singapore - USD
3.70 (equivalent to RM14) per sector. This rate also applies to
tickets issued outside Malaysia for travel within Malaysia, except on
Rural Air Service sectors.

- Travel between Malaysia and North Asia, South Asia, Middle East,
Africa, Australia, New Zealand, Europe, North & South America - USD7
per sector.

Insurance charges for international sectors will be standardized across the
board at USD5 per sector from USD1.25 per sector with effect 01 February
2006.

These revised and new rates, which will be collected at the point of
ticketing, are applicable for tickets issued on/after 01 February 2006 and
for travel on/after 01 February 2006.

With this streamlining and standardizing exercise, which is in line with
industry practices; Malaysia Airlines will continue to remain competitive.

END

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