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View Full Version : AirAsia head challenges Spore's air-hub status



sirgalahad2010
29-03-2006, 03:25 PM
Tony Fernandes, at a joint press conference with MAS's Idris Jala yesterday: "Today will see the start of a co-ordinated effort in Malaysia which would give Singapore a run for their money. Watch out Singapore, that's all I can say".

Tony, Tony, Tony....he's playing it smart. By portraying this as a Msia-vs-Spore issue, he has almost certainly got the Msian govt behind him (and AirAsia).

So, will AirAsia become Msia's low-cost flag carrier?

Next up, I expect him to take aim at the hitherto semi-protected KL-Spore sector. This is where it will get interesting as the Spore govt will do whatever it takes to protect Changi's status as the premier regional air-hub.

It was a pity that the Msia Airports head honcho was not at that press conference. MAB has a key role in making KLIA a regional air-hub. Yet it has been strangely quiet. Does it have a plan?

AllUrban
29-03-2006, 05:07 PM
Tony, Tony, Tony....he's playing it smart. By portraying this as a Msia-vs-Spore issue, he has almost certainly got the Msian govt behind him (and AirAsia).

So, will AirAsia become Msia's low-cost flag carrier?


Very interesting.

Hmmm...when Air Canada took over its major competitor, Canadian Airlines, it then set its sights on the major low cost airline in the country, called Westjet.

Like Air Asia, Westjet is based on the same low fare model made successful by Southwest Airlines of the US and Ryanair of Ireland. I have personally seen Clive Beddoe (Westjet director) help his staff clear litter out of a plane so it could turn around faster.

Anyways, Air Canada created Tango, a low fare airline to compete with Westjet. It is interesting to note that Malaysia Airlines did not try to create a competitor for Air Asia, or try to price them out of the market.

It seems that Malaysia Airlines has either been caught with its pants down or they want Air Asia to grow into Malaysia's low-cost flag carrier...the government encouragement of this new domestic route sharing venture suggests this would have unofficial "official" support.

Cheers, M

chin_wan
29-03-2006, 05:22 PM
Well, SilkAir is Singapore's LCC but they are not doing a good job promoting it as a low cost carrier. When I was in Singapore last week the advertisement they have there was geared towards the "rich" which I think is a moot point.

Rocky19
29-03-2006, 05:31 PM
Anyways, Air Canada created Tango, a low fare airline to compete with Westjet. It is interesting to note that Malaysia Airlines did not try to create a competitor for Air Asia, or try to price them out of the market.

One MAS has enough on their plate instead of starting a LCC. Two they need a complete change of culture and totally new people to run this LCC if they started one cos with the MAS culture etc, LCC will be a failure.Look at the guys protesting the VSS. Three Thai Airways started a LCC in Thailand and if you fly them you can see the issues I raised about MAS and a LCC. Not all companies are successful in creating and running a LCC. I guess Lufthansa was one of those(?).

Air Asia is running a well oiled ship(ok, plane) and MAS should fix the issues they have 1st before taking on a strong player like Air Asia. But that said, I do hope another LCC will be born in Malaysia. Or allow others to fly into KL. We need the competition to keep Air Asia on their toes.Lets give Air Asia some credit, they can give anyone a run for the money and they are successful thus far.

Stan
29-03-2006, 05:46 PM
I think that is a healthy start for Malaysia. It's time to stop the bumi vs non-bumi mentality and create a Malaysia vs others mentality if we want to succeed economically and to enlarge the pie for everyone.

THis is probably the first such 'cooperation'. Hopefully the government will see fit to do the same for other industries..ie cooperation between GLCs and successful private ventures (irregardless of bumi or non bumi) to take on international competitors.

chin_wan
29-03-2006, 05:51 PM
^^ Nice! Very well said. I am fed-up with the "bumi vs non-bumi" talk after the CIMB-SBB take over. I feel that the merger is a win-win for all parties and overall good for Malaysia.

KakiLang
29-03-2006, 06:04 PM
Well, SilkAir is Singapore's LCC but they are not doing a good job promoting it as a low cost carrier. When I was in Singapore last week the advertisement they have there was geared towards the "rich" which I think is a moot point.

Here is what I know..
SilkAir is not a LCC, it is the regional airline of SIA, and Tiger Airways is the LCC in Singapore created by SIA. The other two LCC r ValuAir & JetStar Asia, these 2 LCCs had merged into one company last year. :)

KakiLang
29-03-2006, 09:43 PM
Next up, I expect him to take aim at the hitherto semi-protected KL-Spore sector. This is where it will get interesting as the Spore govt will do whatever it takes to protect Changi's status as the premier regional air-hub.

The question is...When the bilateral air service agreement is reviewed, Malaysia is opening up its sky to Singapore where it can fly multiple destinations in Malaysia, and Malaysia only plying the Singapore route only….who will gain in this case?

sirgalahad2010
30-03-2006, 08:33 AM
Yah, u are right. Its everything about Spore wanting to retain Changi's status as the premier air-hub in the region.

And the Spore govt has played its cards well, signing "open skies" agreements with all and sundry and dishing out traffic rights ex-Spore liberally to keep airlines such as BA and Qantas rooted at Changi instead of moving to KLIA.

The Msian govt's lack of a comprehensive and well thought-out national aviation policy has caused KLIA to fall behind Changi and Bangkok. Wonder what Chan Kong Choy and his boys (and girls) are doing to justify their keep?

KakiLang
30-03-2006, 10:44 AM
Similarly, the Australian Government denied SIA access to the routes between Australia and the US because they see no benefit to Australia in opening up the skies. :)

AllUrban
30-03-2006, 11:04 AM
I think that is a healthy start for Malaysia. It's time to stop the bumi vs non-bumi mentality and create a Malaysia vs others mentality if we want to succeed economically and to enlarge the pie for everyone.


yeah, switch one mentality for another?

Hahahaa well, the bumi vs. non-bumi mentality has created unhealthy divisions that are dividing Malaysian society...

At least the "malaysia vs. others" mentality will probably be based on healthy competition that brings nations together.

Well, except for Singapore :p

Cheers, m