AirAsia is now putting pressure on Malaysia Airlines as well as the government to hand over as many domestic routes as possible to it, not only to save taxpayers money in the form of subsidies to MAS but also to allow MAS to concentrate on the more profitable international operations.
MAS and the government, however, should be careful, very careful, in giving thought to this. Starting with domestic routes, AirAsia will then demand some routes to India and China and eventually, in the spirit of ‘open’ competition it would demand an ‘open skies’ treatment.
Anyway, If MAS can’t make money on domestic routes, how is it AirAsia says it can? It must have a few tricks up its sleeve.
At the moment, travellers - both business and budget - have a choice of two airlines for their domestic travel.
More: malaysiakini.com
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