No Plan By MAS To Have Low-cost Carrier Service

[Naim 6]

May 14, 2008 22:24 PM

 

No Plan By MAS To Have Low-cost Carrier Service

 

KUALA LUMPUR, May 14 (Bernama) -- Malaysia Airlines (MAS) has no plan to operate a low-cost carrier service, Transport Minister Datuk Ong Tee Keat said Wednesday.

 

He said that under the air services rationalisation done in 2006, MAS was slated to run domestic operations as a full service carrier (FSC) whereas AirAsia would provide an LCC service.

 

"The government did not receive any application from any other company to operate an LCC service," Ong said in a written reply to a question from Wee Choo Keong (PKR-Wangsa Maju) in the Dewan Rakyat.

 

Wee wanted to know why the government was reluctant to have an open sky policy and allow Malaysia Airlines to offer low fares to the people and why it allowed a private company like AirAsia to monopolise the LCC service.

 

Ong said if there had been any application to operate a low-cost carrier service, the government would have had to look at several factors like market size, operational viability and other factors in considering the application.

 

"This is to avoid unhealthy competition among local airlines where, in the end, everyone will lose including the consumers," he said.

 

On the open-sky policy, Ong said Malaysia actually offered an open sky policy agreement to all countries but its acceptance depended on the willingness of the countries.

 

"Right now, we have open sky policy agreements with several countries including the United States, the United Arab Emirates, Scandinavian countries, New Zealand, Yemen, Austria and Taiwan," he said.

 

An open sky policy agreement between two countries allows airlines of both nations to have services without limits on capacity and frequency and type of aircraft used.

 

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