Merger of airlines won’t let everyone fly
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Title : Merger of airlines won’t let everyone fly
Category : Malaysians
Any talk on merging airlines would be against the policy of the liberalisation of air services for the domestic market in Malaysia and Asean. It is this policy that gave birth to a few low-cost airlines, competing for a slice of the domestic and regional markets. The federal aviation regulator has also allowed Malaysian-based low-cost airlines to fly the Malaysian flag, in the spirit of cooperation among Asean air services. This was done so that they can enjoy economic benefits of the healthy competition, and move towards a more liberal aviation policy that would eventually replace the bilateral air services agreement (ASA). The government at the time understood the need to set up low-cost airlines, alongside the established full-service airlines in the market. Low-cost airlines were meant to serve a different segment of passengers that had not been captured before. These are the tw…
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