I strongly believe in free enterprise and healthy competition.You can't call it a competition anymore when the playing field is not level and your opponent hit you below the belt and the referee allows it.
The airline business is now a cut-throat business due to high operational costs andtoo many players in the market.Those with good business sense, innovative and good foresight will succeed while those who do not care to innovate, fear competition and in some cases sit on a pile of government subsidies would eventually sees its own demise.
Singapore Airlines (SIA) is today operating its first all-business class service, between its Singapore base and New York-Newark in the USA.
Flight SQ22 departed Singapore at 11:00 today and the Airbus A340-500 is due to arrive in Newark at 17:50 local time.
The carrier announced in March that it planned to switch the A340-500s to an all-business class operation seating just 100 passengers in a 1-2-1 layout. It said the change was being made as a result of higher demand from business travellers for the non-stop US services.
That's Singapore Airline.Let see where our national carrier is taking us to.
Malaysia Airlines is offering 1 million free domestic fares this month to promote its new Everyday Low Fares program, which MD and CEO Idris Jala said "will redefine the rules in the travel industry" if successful. MAS's effort to compete against low-fare giant AirAsia will feature nonrefundable one-way fares of MYR76 ($24) and MYR120 between East and West Malaysia excluding airport taxes and surcharges and will be available online at least 30 days prior to departure. Jala said there will be no loss in revenue, as the fares represent 30% of surplus seats that otherwise would go unsold.
The zero fare quoted by MAS and in comparison with AirAsia are shown below:
AirAsia (RM) MAS 0-Fare Carrier (RM)
Airport Tax + Fuel Surcharge
+ Insurance + Admin Fee 44.50 76.00
Promo Fare* 15 0
Baggage Fee** 3 0
You Pay RM 62.50 RM 76.00
Total fare:Air Asia RM62.50 MAS RM76.00
Even with minimal fare added plus baggage fee Air Asia is still cheaper than MAS.
That's besides the point.What is MAS doing competing with low-cost carrier when it has been decided it should concentrate, improve and expand its international routes and compete with such airlines as SIA,Cathay Pacific and other premier airlines.
It is hard to reconcile putting a passenger who pays say RM1058.00 to fly KK-KL return and his next seat neighbour who pays RM76.00 and get the same service and the same lousy lunch box(usually sold on non-frills airlines)in the economy class.MAS quality of food has deteriorated so much on it domestic sector even those sold on non-frills airline taste better and cheaper.
The excuse that those 30 percent of seat would be unsold anyway goes to show the airline are run by lazy people who would rather be copycats and degrade the airline status rather than taking concerted effort to promote a competitive fare and services than most full-fledged airline should be doing to attract more costumers.
The video above shows some of the surprises you can get on some of MAS planes.
The airline always seems to be getting some sort of awards especially for its in flight services more in it first and business class on international flights and certain sectors rather than a reflection of it overall quality of service.It has also one of the highest air fare in this region.
The normal domestic fare has skyrocketed.The normal return fare KK-Labuan,flight time of less than 30 minutes is now RM350.00.The normal economy fare between KK-KL and return is as shown below.
Flight From/To Time Super Saver Flex Saver Full Flex
MH2601 Kota Kinabalu
Kuala Lumpur International Airport Wed, 21 May
10:50 Sold Out MYR 329.00 MYR 529.00
Flight From/To Time Super Saver Flex Saver Full Flex
MH2604 Kuala Lumpur International Airport
Kota Kinabalu Sun, 25 May
10:05 Sold Out MYR 329.00 MYR 529.00
The return economy fare KK-KL-KK worked out to be RM1058.00.
The fare below is what my wife paid to AirAsia for her flight from Phnom Penh to KL.
1 Guest60.00 US Administration Fee 9.00 US Fuel Surcharge 20.00 US Sub Total 89.00 US
Services & Fees 1 x Xpress Boarding 2.00 US 1 x Checked Baggage 2.00 US
Sub Total 4.00 US Total Amount 93.00 US
From KL to KK
Flight 1 Guest 55.00 MY Airport Tax 6.00 MY Administration Fee 22.50 MY Fuel Surcharge 43.00 MY Sub Total 126.50 MY Services & Fees GoInsure 6.00 MY 1 x Xpress Boarding 5.00 MY 1 x Checked Baggage 6.00 MY Sub Total 17.00 MY Total Amount 143.50 MY
The total one way journey costs her RM437.50.
With such high fare it is little wonder that MAS load factor is lower than it should have been if the fare have been more competitively priced.
In the past MAS complained that most of it losses were from the domestic sector and it was supposed to give up its domestic sector in entirety.
Now, we know that was a lie and a whitewash.If that was true, why are they still keeping the domestic routes and fly parallel with Air Asia on most domestic flights.
You don't need a wiz kid to run MAS, you just need someone with the brain in the right place.
Transport Minister Ong Tee Keat said the current price war between MAS and Air Asia is a healthy competition which will benefit the nation.
That's one big bullshit.It's not healthy competition, it's unfair competition.You either no-frills or full-frills and should learn to be honorable and stick to the original agreement.
Come on MAS, you want to be a cheapo or a full-fledged airline?