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Kenneth T

RM0 fares from Malaysia Airlines

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3-digit fare bash, Rm0 fare still bash

 

As long the word 'MH/MAS/Malaysian' Airlines is there - BASH

 

Mesti Hentam culture ma... :pardon: or someone got thick financial, can afford the more digit airfare all the way either domestic or international. :pardon: we happy maybe we like cheap? no comment. <_>btw, can "quicksilver" or "Baleno" or "ESpirit" or "Parkson Grand" offering 80% discount? or only "Factory Outlet Store (F.O.S.)" got the rights to offer big big discount?

 

back to topic, good news. but i booked the AK ticket a day earlier. no luck. :sorry: :cray: hopefully the tix still available when my next trip confirmed. :D

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I think those who buy full fares are subsidising those who opt for 0 fare. The current revision on the upper end of the Economy Class such as Y Class may be just another way to cover the 0 fares.

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Asked how this would benefit the airline, Idris said: "Customers could enjoy low fares and five-star services while we fill up our planes. We are not losing any revenue from this as the seats represents 30 percent of surplus seats which would otherwise be unsold."

:blink: :blink:

If need be, someone please refer Datuk IJ to LeeCH's post #24 earlier ? :)

 

This should be an early shot at dealing with anticipated industry wide excess capacity, as outlined in BTP2 recently ?

Edited by BC Tam

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Tony Fernandes hits out BIG TIME!!! :help:

 

[/size]

 

Time To Open Up Entire Aviation Sector, Says AirAsia's Tony

 

 

By M. Saraswathi

 

KUALA LUMPUR, May 5 (Bernama) -- Now that Malaysia Airlines is offering low-cost fares, the time has come for the entire aviation industry in Malaysia to be fully liberalised.

 

In making the call, AirAsia Bhd's Group Chief Executive Officer, Datuk Tony Fernandes, said the liberalisation should include allowing AirAsia to mount increased flights to Singapore, fly into the island republic from other points in Malaysia as well as fly to international destinations.

 

He said AirAsia would immediately appeal to the government for full liberalisation of the routes into Singapore following the move announced Sunday by MAS to offer low-cost or zero fares.

 

He said the move by MAS was unfair.

 

"MAS can give zero fares but I cannot have more flights to Singapore and that doesn't make sense. You cant keep on whacking AirAsia and give all the advantages to MAS," said Tony, who spoke to Bernama by phone from London where he is on airline business.

 

Tony said that Singapore International Airlines (SIA) stands to gain from the increased competition between MAS and AirAsia.

 

"It is clear than MAS wants to take us on, we are ready to be taken on. We are not afraid of competition, we think competition is good for the consumers as that's what business is all about.

 

However, he said "competition must be everywhere, not just where MAS chooses it to be. You can't expect us to have one hand tied behind our back while MAS can go wherever they want."

 

He claimed that MAS seemed to have thrown in the towel in the competition against premier airlines such as SIA and Cathay Pacific but was now clearly competing with AirAsia in the only segment in which AirAsia has the advantage, i.e. low-cost fares.

 

Tony said such unfair competition would eat into AirAsia's revenue, more so given AirAsia's efforts to promote Malaysia aggressively overseas.

 

Citing recent advertising expenditure statistics released in Australia, he said AirAsia spent A$320,000 to promote Malaysia's tourism industry but MAS spent only A$4,000 while SIA spent A$1.2 million to promote Singapore.

 

In what is clear evidence that MAS was competing against AirAsia and not other premier airlines in the region, he said the national carrier had brought its products down to a level where AirAsia, even as a low-cost carrier, feels it is as good or even better than MAS in various fields.

 

However, he said AirAsia, which could be regarded as a national carrier, "cannot be defeated by fares as its cost structure was clear."

 

"Airlines that divert from their traditional model will pay the price. You are either a premier airline or a LCC, it is hard to be in between."

"You cannot have a cost structure of a low cost carrier if you have business and first class. It is not feasible," said Tony.

Calling for a complete level playing field in aviation, he said the lucrative Kuala Lumpur-Singapore route should be fully liberalised allowing for increased frequencies.

 

AirAsia, which flies into Singapore twice daily, would submit a request to the government to add an extra six flights daily into Singapore for AirAsia.

 

Ideally, this would mean 16 flights daily to and from Singapore.

 

"If there is a level playing field, probably they will behave differently. Why are they pulling out of so many international routes? Are we going to have two low-cost carriers in Malaysia? If it is 'yes'. So be it, but dont hold us back."

 

He said any subsidies given for international routes for MAS should also be cut.

He said AirAsia hopes to secure additional flights to Singapore not only from Kuala Lumpur but also begin flights into Singapore from Kota Kinabalu, Kuching, Penang, Langkawi and Terengganu within the next two months.

 

-- BERNAMA

I agree to most of what Tony said, especially that SQ and even TG may actually benefits as many premium paying passengers will jump into them. Am not too sure whether Tony is asking a bit too much, but certainly AK is stand to lose in this price war. To counter the losing market segment, I understand Tony's view to increase their destinations, especially to Singapore.

 

Again, a question remains, has any other airline trying to counter local LCC by being a 'hybrid' airline? I seriously doubt this would work.

 

 

 

Edited by Azri M.

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That's the best respond TF can give? Come on...

 

"However, he said AirAsia, which could be regarded as a national carrier, "cannot be defeated by fares as its cost structure was clear.""

 

Arrogant and i hate it when AK kept repeating that they could be regarded as national airline. National airline include RAS service and it's still fresh in my mind how you screwed that up BIG TIME!

 

"AirAsia spent A$320,000 to promote Malaysia's tourism industry"

Anyone knows the breakdown being published anywhere? i wonder how they get this high figure? painting of the VMY2007 aircraft included?

 

However, he said "competition must be everywhere, not just where MAS chooses it to be.

Bring it on. Domestic? I'll fly firefly whenever i can since i'm a SZB airport and Fokker 50 fan, Business Travel? I fly MH as it offers me lots of flexibility and i earn my Enrich miles, Holiday Trip? I fly MH or other full airlines since holiday means relaxing trips not LCCT (Puduraya 2) Long distance? I'm still waiting for AK to compete here....lots of talk, not many being offered yet, manchester la, india la. RAS? I'll fly on MASWings or local aviation which dont simply cancel flight like some company named FAX last time.

 

Just my personal opinion :p

Edited by Azuan Zahdi

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That's the best respond TF can give? Come on...

 

"However, he said AirAsia, which could be regarded as a national carrier, "cannot be defeated by fares as its cost structure was clear.""

 

Arrogant and i hate it when AK kept repeating that they could be regarded as national airline. National airline include RAS service and it's still fresh in my mind how you screwed that up BIG TIME!

 

"AirAsia spent A$320,000 to promote Malaysia's tourism industry"

Anyone knows the breakdown being published anywhere? i wonder how they get this high figure? painting of the VMY2007 aircraft included?

 

However, he said "competition must be everywhere, not just where MAS chooses it to be.

Bring it on. Domestic? I'll fly firefly whenever i can since i'm a SZB airport and Fokker 50 fan, Business Travel? I fly MH as it offers me lots of flexibility and i earn my Enrich miles, Holiday Trip? I fly MH or other full airlines since holiday means relaxing trips not LCCT (Puduraya 2) Long distance? I'm still waiting for AK to compete here....lots of talk, not many being offered yet, manchester la, india la. RAS? I'll fly on MASWings or local aviation which dont simply cancel flight like some company named FAX last time.

 

Just my personal opinion :p

 

To sum up, another MH loyalty customer :drinks:

 

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I am waiting, how cheap is cheaper than RM0 fare as mentioned by TF.

 

AK needs only offer assigned seat and snackbox to square with MH. With these, it will be hard for MH to charge premium fare except in J.

 

:drinks:

 

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Yup...as much as im an MH fan, i do still fly with AK on my 'low-cost' personal flights/holidays. It would be interesting to see a sub-zero offers by AK in the next few days. My guess is that they are going to offer FREE tickets and no surcharge. Only pay airport tax. That would be wild!

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I think those who buy full fares are subsidising those who opt for 0 fare. The current revision on the upper end of the Economy Class such as Y Class may be just another way to cover the 0 fares.

 

Now, if everyone knows that MH offers low fares on each flight, then who in their right mind would want to pay standard fare when I know at least 30% of the passengers on the same flight as me paid next to nothing and yet are enjoying the same service?

 

It's like having so many non-rev in First Class on most US carriers that true premium passengers no longer bother to pay good money to be in First Class. What MH is doing is a sure fire way to dilute their present service and product. At the end of the day, no premium passenger would want to be associated with that airline... just as few CEOs in large corporations would want to be caught flying LCCs.

Edited by S. Huang

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from The Star:

“Just print out the confirmed booking from MAS and I will pay the difference. As for the sub-Zero Fare, which will be launched in the next few days, it will be cheaper than zero,” said Fernandes in an interview

 

Waahhh... cakap besar....

 

I agree with you Azuan. Look at what he did to FAX last time. He was the one who eager to take over the RAS. When he got it and then he found out he's losing it, he threw it back to MH as fast as he wanted it...

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Well, I can get RM 0 for 3rd/Dec to KK.. .

think so that time also school holiday

 

Thery have Blackout periods. 3 Dec is NOT one of them. I think from 15 Nov till 5 Dec, you can get RM0, even though it's the hols. This IS the only exception.

 

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I bet the marketing & sales folks at AK are having a "crisis" meeting this morning. Now, how would AK counter this?

 

In today's The Star, it is said that TF is coming up with sub-Zero Fare in the next few days. Maybe they are thinking of paying us to fly Airasia? Don't hold your breath on this!

:rolleyes: :drinks: :sorry:

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Lol, one thing for certain with the fares offered by MAS i am pretty sure that there will be no cancellation of flights or delay after delays.lol....=P

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By M. Saraswathi

 

KUALA LUMPUR, May 5 (Bernama) -- Now that Malaysia Airlines is offering low-cost fares, the time has come for the entire aviation industry in Malaysia to be fully liberalised.

 

In making the call, AirAsia Bhd's Group Chief Executive Officer, Datuk Tony Fernandes, said the liberalisation should include allowing AirAsia to mount increased flights to Singapore, fly into the island republic from other points in Malaysia as well as fly to international destinations.

 

He said AirAsia would immediately appeal to the government for full liberalisation of the routes into Singapore following the move announced Sunday by MAS to offer low-cost or zero fares.

 

About time too!! The airline business is another bastion of protectionism in this country, just like the car industry, the rice industry and a few others. To get efficient and competitive, the market desperately needs to be liberalized. Liberalization means competition not just for MH but also for AK! I'd love to see another Malaysian full service carrier competing with MH, or another low cost carrier fighting it out with AK.

 

Look what happens with government intervention, AK was given RAS to only cock it up, MH made to fly unprofitable routes. Leave it to the market to decide. I've said this many times over, the gahmen shouldn't meddle in the airline market, they'll only create inefficiencies.

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"AirAsia spent A$320,000 to promote Malaysia's tourism industry"

Anyone knows the breakdown being published anywhere? i wonder how they get this high figure? painting of the VMY2007 aircraft included?

 

Just my personal opinion :p

 

well..one thing i noticed for sure is the constant ads they have at old trafford and having their name stamped on the referees sleeves every other match..thats major publicity if u ask me..sure will cost alot..

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AirAsia makes it a battle in the skies with its own offer

By WONG SAI WAN

 

KUALA LUMPUR: AirAsia has countered Malaysia Airline’s Zero Fare campaign claiming that their cheapest air ticket still costs less than the national carrier’s latest product that was launched yesterday.

 

The budget carrier’s chief executive officer Datuk Tony Fernandes announced that his airline would come out with two new initiatives. They are:

 

> AirAsia will pay the difference to any of his passengers if they can find any MAS airfare that is lower than the cheapest offered by AirAsia.

 

> A sub-Zero Fare campaign.

 

“Just print out the confirmed booking from MAS and I will pay the difference. As for the sub-Zero Fare, which will be launched in the next few days, it will be cheaper than zero,” said Fernandes in an interview.

 

Reacting to the MAS campaign which was launched by its managing director Datuk Seri Idris Jala yesterday, Fernandes said he was “very flattered” by the full-service carrier’s latest initiative because it was a copy of what AirAsia had been doing.

 

“This is the10th time that MAS has copied us. I guess imitation is the best form of flattery,” he added.

 

MAS announced that it has launched a new product that it called Zero Fare whereby domestic travellers need only pay the airport tax and surcharges. Jala also announced that the airline had set aside one million tickets for the travel period between June 10 and Dec 14.

 

For the domestic offer, the total charge for travel between the peninsula and Sabah and Sarawak is RM122.40. For domestic travel without crossing the South China Sea, the charge will be RM81.45.

 

The tickets can only be purchased on-line. MAS is expected to expand this offer to Asean routes soon.

 

The Star front-paged this report yesterday and by mid-day the MAS website (www.malaysiaairlines.com) was reporting heavy traffic.

 

Fernandes also produced a list of prices to compare the fares offered by AirAsia against MAS' to prove that his was cheaper.

 

He said that he was sure that consumers would know which airline is making a better offer especially since his AirAsia gives better service.

 

“We have newer aircraft, better and hot food – although passengers have to buy them on board – better seats which are more spacious and we definitely have better crew.

 

“We have more frequency to local destinations.

 

“We have more point-to-point routes; for example one can fly directly from Penang to Kota Kinabalu or Johor Baru to Miri without having to transit at another airport,” said the AirAsia boss.

 

He also revealed that his airline had started selling hot roti canai on board his planes last month and would introduce chicken rice and satay soon.

 

http://thestar.com.my/news/story.asp?file=...&sec=nation

 

 

 

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well..one thing i noticed for sure is the constant ads they have at old trafford and having their name stamped on the referees sleeves every other match..thats major publicity if u ask me..sure will cost alot..

 

Yeah, i noticed that. I think MAS has similar arrangement where during half time shows of EPL i can see MH branding. Anyway these are promoting the companies, its not the same as promoting Malaysia, isnt it?

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