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| Malindo aircraft, Lion Air Group operates in Malaysia |
The presence of low-cost airline Malindo Airways in Malaysia began to threaten the dominance of AirAsia. Malindo Air offers competitive rates, these benefits, as well as various other ancillary facilities. It was, triggered a price war. Reported
by Reuters on Wednesday, June 5, 2013, prices on air tickets from Kuala
Lumpur to Borneo, as Kinabalu and Kuching average fell 12.6 percent
during March and May 2013.
Malindo Airways lure tourists with amenities such as complimentary snacks, booking baggage, and a bigger chair. Furthermore, Malindo fly from Kuala Lumpur International Airport, instead of the Low Cost Terminal used AirAsia.
"Malindo give us more. The same price, we get a sandwich, a drink, and a better airport," said Fauzi Yazmi, Malindo one of the passengers who flew from Kuching to Kuala Lumpur.
However, S & P analysts Singapore, Shukor Yusof, said that Malindo Air has not sufficiently established to be a major concern for AirAsia but enough to mengerus AirAsia revenue.
Meanwhile, consultants Frost & Sullivan Aerospace and Defence Practice for Asia-Pacific, Subhranshu Sekhar Das, explaining that Malindo Air is eyeing a position between full service airlines and cheap.
Malindo, he said, targeting the market that can replace Firefly abandoned since 2011. Firefly is a subsidiary of Malaysian Airlines Flying to East Malaysia.
Meanwhile, AirAsia reported a 39 percent profit decline in January-March 2013. The analysts also corrects AirAsia net profit target for 2013, amounting to three percent. AirAsia CEO, Tony Fernandes, has vehemently rejected the notion of competition between AirAsia with Malindo Air.
While CEO Malindo Air, Chandran Ramamurthy, said passenger load factors average of 79 percent and the company plans to expand flights to Sibu, Miri and Tawau in eastern Malaysia this month.
Malindo Airways is a joint venture between Lion Air (49 percent) with the National Aerospace & Defence Industries Sdn Bhd (51 per cent).
Sources:http://nasional.news.viva.co.id/news/read/418486-malindo-air-ancam-airasia-di-malaysia
Malindo Airways lure tourists with amenities such as complimentary snacks, booking baggage, and a bigger chair. Furthermore, Malindo fly from Kuala Lumpur International Airport, instead of the Low Cost Terminal used AirAsia.
"Malindo give us more. The same price, we get a sandwich, a drink, and a better airport," said Fauzi Yazmi, Malindo one of the passengers who flew from Kuching to Kuala Lumpur.
However, S & P analysts Singapore, Shukor Yusof, said that Malindo Air has not sufficiently established to be a major concern for AirAsia but enough to mengerus AirAsia revenue.
Meanwhile, consultants Frost & Sullivan Aerospace and Defence Practice for Asia-Pacific, Subhranshu Sekhar Das, explaining that Malindo Air is eyeing a position between full service airlines and cheap.
Malindo, he said, targeting the market that can replace Firefly abandoned since 2011. Firefly is a subsidiary of Malaysian Airlines Flying to East Malaysia.
Meanwhile, AirAsia reported a 39 percent profit decline in January-March 2013. The analysts also corrects AirAsia net profit target for 2013, amounting to three percent. AirAsia CEO, Tony Fernandes, has vehemently rejected the notion of competition between AirAsia with Malindo Air.
While CEO Malindo Air, Chandran Ramamurthy, said passenger load factors average of 79 percent and the company plans to expand flights to Sibu, Miri and Tawau in eastern Malaysia this month.
Malindo Airways is a joint venture between Lion Air (49 percent) with the National Aerospace & Defence Industries Sdn Bhd (51 per cent).
Sources:http://nasional.news.viva.co.id/news/read/418486-malindo-air-ancam-airasia-di-malaysia
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