Tweet
AirAsia Whines About Competition, Can't Stand Heat
Air Asia's Tony Fernandes is complaining about Malaysia Airlines 'encroaching' onto it's low-fares market.
------------------------------------------
Our Everyday Low Fares, launched on Monday to offer zero fares to all domestic destinations, is meant to create new demand and to encourage people who are not planning to travel to do so,” said MAS managing director/chief executive officer Datuk Seri Idris Jala.
“Response to ‘Everyday Low Fares’ has been excellent with a total of 50,000 tickets sold in the first two days.”
MAS has 1.3 million zero-fare seats up for grabs until the end of the year, but the booking period is only until May 19. Travellers need only pay the airport tax and surcharges.
Now that Malaysia Airlines is offering low-cost fares, the time has come for the entire aviation industry in Malaysia to be fully liberalised. {says Air Asia CEO, Tony Fernandes}
He said the move by MAS was unfair.
"MAS can give zero fares but I cannot have more flights to Singapore and that doesnt make sense. You cant keep on whacking AirAsia and give all the es to MAS," said Tony, who spoke to Bernama by phone from London where he is on airline business.
Tony said that Singapore Airlines (SIA) stands to gain from the increased competition between MAS and AirAsia.
"It is clear than MAS wants to take us on, we are ready to be taken on. We are not afraid of competition, we think competition is good for the consumers as that's what business is all about.
However, he said "competition must be everywhere, not just where MAS chooses it to be. You cant expect us to have one hand tied behind our back while MAS can go wherever they want."
He claimed that MAS seemed to have thrown in the towel in the competition against premier airlines such as SIA and Cathay Pacific but was now clearly competing with AirAsia in the only segment in which AirAsia has the advantage, i.e. low-cost fares.
In what is clear evidence that MAS was competing against AirAsia and not other premier airlines in the region, he said the national carrier had brought its products down to a level where AirAsia, even as a low-cost carrier, feels it is as good or even better than MAS in various fields.
"Airlines that divert from their traditional model will pay the price. You are either a premier airline or a LCC, it is hard to be in between."
"You cannot have a cost structure of a low cost carrier if you have business and first class. It is not feasible," said Tony.
He said MAS should work together with AirAsia instead of competing and accused the full service airline of “surrendering” to Singapore Airlines (SIA).
“MAS and AirAsia will go to war and the only beneficiary will be SIA,” said Fernandes.
"Our two airlines are dedicated to turn KLIA into a major Asian hub again. MAS should join us in this mission,” he added.
------------------------------------------
Excerpts from:
TheStar (Malaysia)
Bernama (Malaysia)
The Star (Malaysia)
* Note that excerpts are not quoted in any particular order
------------------------------------------
Our Everyday Low Fares, launched on Monday to offer zero fares to all domestic destinations, is meant to create new demand and to encourage people who are not planning to travel to do so,” said MAS managing director/chief executive officer Datuk Seri Idris Jala.
“Response to ‘Everyday Low Fares’ has been excellent with a total of 50,000 tickets sold in the first two days.”
MAS has 1.3 million zero-fare seats up for grabs until the end of the year, but the booking period is only until May 19. Travellers need only pay the airport tax and surcharges.
Now that Malaysia Airlines is offering low-cost fares, the time has come for the entire aviation industry in Malaysia to be fully liberalised. {says Air Asia CEO, Tony Fernandes}
He said the move by MAS was unfair.
"MAS can give zero fares but I cannot have more flights to Singapore and that doesnt make sense. You cant keep on whacking AirAsia and give all the es to MAS," said Tony, who spoke to Bernama by phone from London where he is on airline business.
Tony said that Singapore Airlines (SIA) stands to gain from the increased competition between MAS and AirAsia.
"It is clear than MAS wants to take us on, we are ready to be taken on. We are not afraid of competition, we think competition is good for the consumers as that's what business is all about.
However, he said "competition must be everywhere, not just where MAS chooses it to be. You cant expect us to have one hand tied behind our back while MAS can go wherever they want."
He claimed that MAS seemed to have thrown in the towel in the competition against premier airlines such as SIA and Cathay Pacific but was now clearly competing with AirAsia in the only segment in which AirAsia has the advantage, i.e. low-cost fares.
In what is clear evidence that MAS was competing against AirAsia and not other premier airlines in the region, he said the national carrier had brought its products down to a level where AirAsia, even as a low-cost carrier, feels it is as good or even better than MAS in various fields.
"Airlines that divert from their traditional model will pay the price. You are either a premier airline or a LCC, it is hard to be in between."
"You cannot have a cost structure of a low cost carrier if you have business and first class. It is not feasible," said Tony.
He said MAS should work together with AirAsia instead of competing and accused the full service airline of “surrendering” to Singapore Airlines (SIA).
“MAS and AirAsia will go to war and the only beneficiary will be SIA,” said Fernandes.
"Our two airlines are dedicated to turn KLIA into a major Asian hub again. MAS should join us in this mission,” he added.
------------------------------------------
Excerpts from:
TheStar (Malaysia)
Bernama (Malaysia)
The Star (Malaysia)
* Note that excerpts are not quoted in any particular order
Comment