The Rage,
Hmm, your quote "The prob with all u AK boys" I take exception to
No rallying behing Tony indended by this post but Tony is a pretty smart Business man and better at it than you and I put together me thinks.
But I think we are smart too and that being because we will one day soon end up flying at a better paid place than MAS and Air Asia salary for any fleet put together
I'm sure you have your plans...I certainly have mine.
MAS now gets to do what they like with the Domestic and surely they will now do better with their own business management for the premium market for domestic travel in Malaysia to make money.
But anyway what this plan means for Tony exactly;
1. End of subsidies to MAS domestic. MAS will have to generate profit
from its own turnover. For routes that are not
making money, MAS will have to withdraw or cut back the capacity or raise
fares. They can no longer engage in low fares just to hurt AirAsia.
2. Market segmentation. MAS will not be allowed to price
below their full fares. They are allowed to increase their full fare in
Economy up to 30%. Their Business class fares will also be raised. This
means that MAS, due to the pricing strategy will focus on the premium market
and AirAsia will focus on mass market principally to itself. In addition,
there will be no more Supersavers, no more Student Fares, no more Group
Fares and Holidays package fares.
3. AirAsia has free access to any routes in Malaysia with
no control on capacity.
4. AirAsia will operate Senai Hub in totality. MAS will
not operate any flight from Senai to any point except the KL-JB route.
5. AirAsia have exclusivity on 96 routes where MAS will not
compete.
6. AirAsia will take some of MAS' staff, no aircraft, and will
provide MAS with some inter-connectivity.
7. AirAsia will start hubs in Kuching and Kota Kinabalu.
8. On the Rural Air services, AirAsia will help manage the
Rural Air and Fokker 50 services. Air Asia will subcontract this service
to 3rd party. This will NOT come under the AirAsia brand. AirAsia WILL BE PAID for managing the service and the Government will FULLY SUBSIDISE these flights.
*********
The rationalization has already started and Supersavers are gone. MAS will
begin to cut back some capacity and they will start removing special fares
and increase fares. Therefiore MAS will fly profitably with Domestic and the public benefit from the low fares on more routes with AK
Lots of Fun for both sides then. Question is, what is the East Malaysia based MAS guys deal going to be? I certainly hope that even under a different company the F50 and Twin Otter guys will still be given opportunity to progress to MAS mainline.
Happy Landings to you and all
