Strong headwinds swirl around AirAsia-MAS merger

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Talk of a merger between AirAsia and MAS re-emerged in a news report on Friday.PETALING JAYA: Transport experts say a merger of AirAsia and Malaysia Airlines may kill competition and result in a surplus of aircraft. However, another expert feels the idea is workable. The two airlines serve different market segments, according to Rosli Azad Khan, who has over 40 years in the transport industry. “AirAsia appeals to the tourists market, students, pensioners and migrant workers, among others,” he said, while MAS appeals to the corporate sector such as civil servants who travel on government warrants, business travelers and high end tourists. He said healthy competition within different market segments in the airline industry would push fares down and increase service levels. “It is not the role of the government to stifle competition and allow airlines to operate as a monopoly,” he ad…