There’s Enough for Everyone, Says MAS

KUALA LUMPUR: National carrier Malaysia Airlines (MAS) is unfazed with the launch of AirAsia X, Malaysia’s new low-cost long-haul service, and is optimistic that the market is huge enough for both airlines.

It said the concept of long-haul low-cost travel is already available via Oasis Hong Kong Airlines, which began operating Hong Kong-London-Gatwick flights in October last year.

In a statement, MAS said it is confident that there is room for both a full service airline and a long-haul low-cost carrier in Malaysia.

“The models cater to, and serve, different market segments and routes. Passengers will always choose based on their specific needs.

“We wish AirAsia X the best in this highly competitive marketplace,” it said.

Analysts contacted also agreed that AirAsia X would have minimal impact on MAS’ business.

TA Securities analyst Rosnani Rasul said AirAsia X is creating a new market segment in long- haul travel, and would not cannibalise MAS.

“The new service will appeal to budget travellers. Currently, MAS’ long-haul route concentrates on high-yield passengers, namely business travellers. Each airline would have different target markets,” she said

Rosnani also pointed out that AirAsia X and MAS would be flying to different airports.

OSK research manager Chris Eng said the tie-up between AirAsia and FAX would also contribute towards making KLIA a regional low- cost carrier (LCC) hub.

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