From British Overseas Airways Corporation (BOAC), Qantas Empire Airways (Pty.), Ltd., and private interests in 1966, officials from Malaysia and Singapore discuss combined operations. These talks lead to the November 1, 1967 creation of M-SA as successor to MAL. Shareholding is divided between Singapore and Malaysia (38% each), Brunei (13.2%), BOAC and Qantas (11.6%). Former BOAC Managing Director David Craig is appointed chairman/managing director.
Previously flown routes, aircraft, personnel, and agreements are maintained. Comet 4B service, meanwhile, is extended to Perth and Sydney. Enplanements for the year are 1,005,000.
The carrier’s first three Boeing 707-338C Stratoliners, leased from Qantas Airways, Ltd., are placed in service on April 1, 1968 and replace the Comet 4s on overseas flights. Meanwhile, company hostesses introduce elegant sarongkebaya uniforms designed by Pierre Balmain. On August 1, Stratoliner flights begin to Taipei and Tokyo, while regional frequencies are introduced to Phnom Penh, Medan, and Jakarta. The former Borneo Airways, Ltd. Scottish Aviation Twin Pioneers are replaced with Britten-Norman BN-2 Islanders.
A total of 1,264,000 travelers are carried.
The Comet 4Bs are replaced on August 21, 1969 by five B-737-112s as MSA becomes the first airline in Asia to operate the “Baby Boeing” short-haul jetliner. B-737-112 service to Bali begins on October 19. Later in the year, the Malaysian and Singapore governments include their stakes to 42% each, leaving only 16% for the three minority partners.
Airline employment is 4,076 and bookings total 1,556,000.
Two B-707-312Cs are added in 1970 as boardings grow to 1,882,000. Cargo climbs by 28%. The fleet now comprises 3 B-707-338Cs, 2 B-707-312Cs, 5 B-737-112s, 10 F.27s, and 3 each Britten - Norman BN-2 Islanders and Douglas DC-3s. The workforce now totals 5,032 and a S$42-million profit is reported.
A restructuring becomes imminent after January 1971. Singapore leaders have, since the unification, been pushing for expanded international services while Malaysia’s officials seek greater development of lengthy regional/domestic routes.
The festering philosophical differences over service leads the governments involved to determine upon dissolution of the joint airline in favor of individual national carriers. The parties involved meet to discuss an amicable dissolution on April 27; however, talks turn nasty the next day as officials are unable to agree on route frequencies.
Even as talks proceed, the route network grows to include Bombay, Bahrain, Rome, London, and Melbourne. Meanwhile, two more B-707-312Cs join the fleet and are employed, on June 2, to inaugurate a new service to London from Singapore via Bombay, Bahrain, and Rome. Malaysian Prime Minister Tun Abdul Razak coins the term MAS, Malaysian Airline System, for the proposed Malaysian carrier, which further complicates the process.
Following a particularly bitter exchange during asset division negotiations, Chairman Craig is dismissed on July 20. At this point, new bargainers enter the arena, one chairman each from Singapore and Malaysia plus Kuok Hock Nien.
A total of 1,557,000 passengers are carried during the combined airline’s final year.
Three more B-707-312Cs are purchased in 1972 as routes are opened to Athens, Zurich, Frankfurt, and Osaka. The KRISCOM reservations system is installed. With dissolution negotiations finally completed and all necessary documents signed, Malaysian Airline System, Ltd. (MAS) and Singapore Airlines, Ltd. are both formally born on October 1.
World History
