Malaysia Airlines not scared of U.S. aviation pact
Malaysia Airlines not scared of U.S. aviation pact
KUALA LUMPUR (AFP): Malaysia Airlines System Bhd. has no fear of competition from North American carriers under an impending "open skies" pact with the United States, reports said yesterday.
Airline chairman Tajudin Ramli said the national carrier's domestic and regional operations were sufficient to withstand any competition and viewed the pact as a boost to the airline's future earnings.
"Malaysia Airlines is very well positioned to take advantage of the open skies policy with six international gateways," Tajudin was quoted as saying in the daily Business Times.
"We have been competing (with the rest of the world for a long, long time), and we have been winning, so there is no reason why we should back paddle now and be scared of the competition," he added.
Malaysia and the United States are expected to forge a landmark "open skies" pact next month freeing bilateral air traffic and "fifth freedom" traffic rights, lifting restrictions on flight destinations and frequency.
Fifth freedom rights refer to airlines picking up passengers in a foreign country and flying them to another destination.
The agreement would open up new routes for Malaysia Airlines which at present only flies to Los Angeles six times a week.
Tajudin said Malaysia Airlines would expand both its domestic and regional routes to serve as feeders for longhaul flights while raking in higher income from the growing air travel industry.
Given the expected boom in air traffic and cargo in the next decade, he warned that efforts would have to be undertaken jointly to upgrade the country's airport facilities.
The six international airports in the country are located in Kuala Lumpur, northern Penang, northeast Langkawi island resort, southern Johore state, and one each in eastern Sabah and Sarawak states on Borneo island.
A new international airport in Kuala Lumpur, costing nine- billion-ringgit (3.6-billion-dollar), is expected to be operational next year.
Tajudin said the airline would opt for bigger aircraft to better handle traffic congestion at regional airports and cope with rapid growth in aviation in Southeast Asia, identified as the fastest growing hub in the world.
The airline is also eying new destinations on the east coast of North America, including Canada, he said, adding that Malaysia Airlines was negotiating with some North American carriers for possible commercial alliances.