Malaysia Airlines hopes for peace with AirAsia
Malaysia Airlines hopes for peace with AirAsia
Agence France-Presse, Kuala Lumpur/Malaysia
National carrier Malaysia Airlines is willing to work with its
no-frills competitor AirAsia for mutual benefit, signalling a
possible end to months of bitter rivalry, a report said on
Sunday.
"Of course we can work with AirAsia where it is mutually
beneficial," Malaysia Airlines chairman Munir Majid was quoted as
saying in the New Sunday Times.
"No problem. If there is, let us not exaggerate it, as that is
not a good start for looking into possibilities of cooperation,"
Munir said.
Malaysia Airlines provided training facilities for AirAsia
pilots and engineering maintenance facilities, he said. "If we
had wanted to throw a spanner in the works, we could have asked
them to do all this at some costly foreign locations."
AirAsia, regarded as the region's no-frills pioneer, has
criticized its rival's plans to launch a budget carrier with
other regional airlines and called for a chance to work together
to turn the country into a regional low-cost aviation hub.
Malaysian Transport Minister Chan Kong Choy has in the past
called on the national carrier to cooperate with AirAsia instead
of pursuing its own plans.
Malaysia Airlines' Munir pointed out the budget aviation
sector was different from the Malaysia Airlines full service
model.
"Even if Malaysia Airlines were to set up its own LCC (low-
cost carrier), it can only be run successfully by a management
oriented to and experienced in the budget airline business,"
Munir said.
However, Munir disagreed with AirAsia's proposal to turn the
old unused terminal in Subang into a no-frills aviation hub,
saying it "would spell the end of any hope of developing Kuala
Lumpur International Airport (KLIA) into a meaningful aviation
hub".
From its humble beginnings with just two Boeing 737-300 jets
in 2001 plying Malaysia's domestic routes, AirAsia has expanded
at a furious pace. It now flies to 30 destinations in Malaysia
and the region, including neighbouring Singapore, Thailand,
Indonesia and Macau and hopes to fly to China by year-end.
AirAsia expects to carry about 7.5 million people in 2005
after six million in 2004. It plans to expand its fleet to 26
next year from the current 18 and acquire 80 new aircraft in the
next four to eight years.
The budget carrier recently gained full regulatory approval
for its initial public offering and will issue 700.51 million
shares in what is expected to be the country's largest listing
this year.
AirAsia also has a 49-51 joint venture low-cost airline in
Thailand with Thai telecoms giant Shin Corp. owned by the family
of Thai Prime Minister Thaksin Shinawatra.