Can they let everyone fly?
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Fernandes has been the vocal advocate for the opening up of the lucrative air route between his home base Malaysia and neighbouring Singapore. Almost 85% of the traffic between the less-than- an-hour route is shared in a cosy relationship between the national carriers of both countries - Malaysia Airlines and Singapore Airlines - with 200 weekly flights.
The round-trip fare costs a relatively high S$450 (about US$300). AirAsia’s “Now everyone can fly” offer - one way from S$60.
AirAsia has been pressing the authorities on both sides of the causeway to open up the route. Rival Singapore-based low-cost carrier Tiger Airways is also keen to take a bite of the share. But both Singapore and Malaysia, especially, had earlier pointed to the 1 January 2009 deadline for the members of the regional grouping ASEAN (Association of Southeast Asian Nations) to open up their skies.
From official statements, Singapore seems keen to open up the route earlier and Malaysia’s Transport Minister Chan Kong Choy said last week that Malaysia was prepared to look at bringing forward the Asean Open Skies Policy from its original schedule of Jan 1, 2009.
Fernandes said he’s not asking that the deadline of the open skies be brought forward but that he be allowed to offer just two flights to Singapore daily.
Now this is not the first time that the pronouncements have been made to relook the deadline. Malaysia Airlines has been unwilling to sacrifice its cash cow and has opposed it.
“Protection is not the way,” Fernandes said last week.
“It is disappointing that a company that is government-linked and twice the market capitalisation of AirAsia is preventing us from growing. All we want is two flights.”
He wants to develop Malaysia as a true low-cost hub. After all, within six years, AirAsia has expanded to more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.
But will they let him fly? Yes, but just before the deadline is up.
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