Airasia X Should Be Allowed To Fill Up Frequencies, Says Dr Mahathir

[flee 5]

SEPANG, March 3 (Bernama) -- AirAsia X should be allowed to fill up frequencies at whichever routes that Malaysia Airlines (MAS) could not do so, Tun Dr Mahathir Mohamad said today.

 

"In many cases, though the demand is there, MAS is not being able to provide more frequencies. So, when they cannot provide more frequencies, I think it's fair to allow AirAsia X to pick up the frequencies," the former prime minister said.

 

"There will be a competition of course but it is up to AirAsia X and MAS to find ways of making a success of the routes," he told reporters after visiting AirAsia's office and academy here.

 

Dr Mahathir was asked to comment on AirAsia X which was competing for the same routes that MAS already had presence, such as to destinations in Australia and the United States.

 

Present was AirAsia X non-executive independent chairman Tan Sri Rafidah Aziz, AirAsia chairman Datuk Aziz Bakar, AirAsia chief executive Datuk Seri Tony Fernandes and AirAsia deputy group chief executive Datuk Kamarudin Meranun.

 

During the question and answer session with AirAsia staff, Dr Mahathir said AirAsia was capable of helping Malaysia to achieve its targeted ratio of one tourist per head of population.

 

He said AirAsia contributed a lot towards the growth of Kuala Lumpur International Airport (KLIA) and increasing the number of tourists and visitors to Malaysia.

 

"Our target has always been one tourist per head of population.

 

"The population now is between 27 million and 28 million. We have now reached about 22 million tourists a year. We are doing quite well.

 

"AirAsia will help us to achieve this target in a short time," he said.

 

He said the country's target was to build a second satellite building for KLIA when it reaches more than 35 million passengers a year "but now it has more than that because of AirAsia".

[Mohd Suhaimi Fariz 2]

Looks like AirAsia's playing the political game very well.

[Walter Sim 1]

Looks like AirAsia's playing the political game very well.

 

They're just learning from the best

[BC Tam 2]

Wow, some sort of class reunion being assembled at Dato TF's playpen kah ?

Make sure Mr 019 is roped in, invaluable old hand experience

[Cire 0]

It is about time for AK to start to flex its muscle a bit.

AK have been pushed around for too many a times already. It was although the Gov.is giving time as much as possible for MH to build up its network by retarding AK's growth.

[leon t 0]

but it will costs AK quite a lot for having such political connections n endorsements - ie in having ex-minister of trade Tan Sri Rafidah Aziz - however in some events, this may also put AK in negative territory depending on the political situations.

[Robert 0]

SEPANG, March 3 (Bernama) -- AirAsia X should be allowed to fill up frequencies at whichever routes that Malaysia Airlines (MAS) could not do so, Tun Dr Mahathir Mohamad said today.

 

 

 

I don't agree with this and AK/D7 should be allowed to compete with MAS and then let the market decide if there is a place for both on them on certain routes.

[Riza 0]

Different business model, different market segment, different product. MH can do one. AK also can do one.

[flee 5]

Yes, I think that AirAsia X has already proven (with airport statistics) that the market expands when they operate into the destination.

 

Melbourne used to handle fewer passengers (than SYD) to KUL before D7 started flying there. Now, not only is MEL handling more pax to KUL than SYD (where the market is ripe for expansion), there is even EK plying the route as well.

 

There is plenty of room for airlines to get their business. They just need to focus on their target customers. Each airline has something different to offer and passengers have a choice on which airline they choose to fly on.

[Fahiruz 0]

perhaps Mahathir can become chairman also

[Mike P 0]

Perhaps Mahathir can be the protege?

[Waiping 12]

Wouldn't this be the same as "allowing foreign car makers to fill the demand of local automotive industry, in direct competition with Proton and Perodua?"

[Mike P 0]

It's a shame to say MAS is so uncompetitive compared to SIA and if KUL wished to be the regional Hub and to compete with SIN, let AK expands their wings!

[flee 5]

Is MAS uncompetitive or is it looking for handouts and the easy way out? Why are they so afraid to let SYD open up? Before D7 flew to MEL, pax volume was much lower. Now, MH's business at MEL is better than ever even though both D7 and EK are also plying the route. So, competition is a good thing for the route and passengers have plenty to choose from.

 

KUL cannot become a regional hub like BKK or SIN if the govt. does not have an open skies policy. Its about time that the govt. allows any airline to fly wherever they want so that we get more traffic growth at KUL.

Edited March 5, 2011 by flee

[N Azman 0]

Hehehehe the age old discussion. I do understand your frustrations as above, but i think your anger is misdirected to MH! MH do not call the shots with route assignment, DCA and the Gahmen does. Hmm...so maybe MH does their part of lobbying, who knows? but can you blame them for doing so?

 

Despite what Tony says about wanting competition, i believe its complete horseshit anyway because given the chance, he'd want MH to go completely bust and operate in a monopolistic environment anyway. Thats how businessmen make money, and he's already contradicted himself publicly during the Thai tiger fiasco. As per the link :

 

http://blogs.crikey.com.au/planetalking/2010/10/16/why-did-tony-fernandes-lose-it-so-badly/

 

No sane businessman in the world would ENCOURAGE competition in his own ground, and MH, AK all fall under this category.If you can find this person, then I'd want to see his directors of the board about his position!

 

The only difference is the ability to do something about it Hence now the Rafidah, the Dr M, the lobbying, the etc etc etc continues. And its all so exciting!

 

Yes the loser is the public, but hey, we want them to do business, not public service AK has already demonstrated that during the FAX fiasco. Business 1st, Public Service 2nd. and I applaud them for it!

 

So don't hate the player, hate the game.

 

my 2 cents.....

[Kris Kim 0]

Yes, I think that AirAsia X has already proven (with airport statistics) that the market expands when they operate into the destination.

 

Melbourne used to handle fewer passengers (than SYD) to KUL before D7 started flying there. Now, not only is MEL handling more pax to KUL than SYD (where the market is ripe for expansion), there is even EK plying the route as well.

 

There is plenty of room for airlines to get their business. They just need to focus on their target customers. Each airline has something different to offer and passengers have a choice on which airline they choose to fly on.

 

MEL's numbers were ALWAYS larger than SYD, although SYD market was higher yielding than MEL. MH had only operated SYD double daily recently, while MEL has double daily for quite a few years with a third flight being trailed not so long ago. All that aside D7 had really opened up the market for those who cannot afford or want to pay full fare where you can save 30% or more when flying, MEL numbers to KUL have more than doubled. Their Premium offering is pretty impressive also.

 

Well for EK, there were rumors BA was going to start LHR-KUL-MEL but EK decided to block the decision. D7 has also reduced MEL flights to a single daily for now.

[Isaac 0]

MEL's numbers were ALWAYS larger than SYD, although SYD market was higher yielding than MEL. MH had only operated SYD double daily recently, while MEL has double daily for quite a few years with a third flight being trailed not so long ago.

That is not true. Still got proof from old printed timetables.

 

 

Well for EK, there were rumors BA was going to start LHR-KUL-MEL but EK decided to block the decision. D7 has also reduced MEL flights to a single daily for now.

Seriously ?

[Mike P 0]

D7 is going to reduce KUL - MEL flight to daily...

[N Azman 0]

I wonder why.... Azran's always said their AU ops are making loads of money and that feeds his excuse to why he wants SYD.

 

This is quite baffling...

[flee 5]

D7 operates an Australian summer schedule (Dec to Feb) with additional flights. Now that summer is over, they are reverting to their normal timetable. So this is nothing unusual for D7.

[N Azman 0]

ahhh, that must be it thanks flee. still, its quite weird tho since kangaroo peak travel profiles cover both the southern summer (outgoing) and northern summer schedules (incoming)...

[KK Lee 5]

The grand oldman memory and speech is known to be selective especially saying different thing to different audience. In a few months time, if his habit hasn’t change, he will say MH need gomen protection.