Under the previous agreement between MAS and AirAsia, MAS is not allowed to sell its tickets below certain prices because the route that both airlines are quite different. But recently, MAS make a turnaround and slashed their prices way below what they have been selling and this in a way violates the original agreement. And obviously as a true business man, the CEO of AirAsia Tony Fernandes made noise about it and launched a complaint to the Ministry of Transport. He had said that the lifting of the floor price caused unfair competition, claiming that the rationalisation process was to keep two different markets.
And as usual our Transport Minister - Mr Chan Kong Choy, seems to be cornered into a situation that he had no choice but to step up and make a decision. If not he will lose his Water Face - summore he is second man in MCA, you know!!! And in a true Malaysia politician fashion, he choose the easy way out by helping MAS to "Hit under the belt" of AirAsia in this boxing match. He dont even bother considering promoting competition in the industry, and that is when you can see improvement and automatically the public will benefits in many ways. The monopoly does not benefit the public.
Mr Chan said that the Cabinet decided to lift the floor price for MAS is in the interest of the public and for the development of the country’s aviation industry. He also said the decision made two weeks ago had created fair competition between MAS and low-cost carrier AirAsia, which did not have a floor price.
To me this is all bullsh*t.......
1) What do you mean by "In the interest of the public"
My Q is why do you lift the floor price now when MAS is facing competition from AirAsia. How come this is not done 5 years or 10 years ago. Izit bcos there wasnt any competition then. Why only think of public interest now!!! All the $$$ made by MAS had gone to God knows where. Sounds familiar right. Yah, this is the Classic statement from Sammi Va Loo !!!
2) The development of the country's aviation industry
Tell me what aviation industry do we have. For the past God knows how long, we only have MAS. Only in the recent years that AirAsia surfaced and give them a real wakeup call. Hei dude, you are screwing up the aviation industry (sorry for the vocab used). Let me show you how to run an airline biz and make money out of it!!!
3) What "Fair competition"
In Malaysia, MAS has always been treated as the Tai Kor (Big Brother) of the airline industry enjoying all the privileges like Govt subsidy and international routes. AirAsia is the Sai Low (Small Brother) here and try to learn a few new tricks here and there, and be as independent and be a survival. Here comes the father, encouraging the big brother to whack the small brother left, right an center. Small brother can take it for a while but not long, and so this small fella will retaliate and eventually give one big punch on the big brother face. And this is what I think Tony will do, give one big punch on the face to MAS - A Rocky Balboa punch !!!
AirAsia - Now Everyone Can Fly
MAS - Going Beyond Expectations (they really live up to it ~ at least to Tony Fernandes)
MAS new tagline - I Also Want Everyone To Fly
Tony: Give out another 1,000,000 FREE seats, and MALAYSIA will be with you
Gua Caya Pada Lu !!!!