Very good - more competition is always good for the consumer, provided that it is sustainable and not wasteful.
Cheap cheap cheap and cheaper....here we go:
- Competition in the international market has been intensifying, pressuring yields.
- Five of the six airlines based in Malaysia were unprofitable in 2018 and the outlook for 2019 is not any rosier.
China is Malaysia’s third largest international market based on seat capacity. Indonesia and Singapore are the two largest markets based on seat capacity (and are also the largest based on visitor numbers).
AirAsia/AirAsia X, Malaysia Airlines and Malindo now serve all of Malaysia’s top 10 international markets. Malaysia has become an extremely competitive market.
Of the six Malaysia-based airlines, only one was profitable in 2018: Malaysia AirAsia, which reported a 54% drop in pretax profit.
The outlook for 2019 is again relatively gloomy. Malindo is resuming expansion, which could impact AirAsia and Malaysia Airlines as yields on some routes are again pressured.
Edited by Holger, 15 April 2019 - 03:12 PM.