MAS Chief predicts bleak future for airlines (P3 lead)
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Malaysia Airlines Managing Director & CEO Dato’ Sri Idris Jala has written an open letter warning of bleak times ahead for the aviation industry and telling customers to expect ‘sharply higher prices’. “Even at the best of times, airlines do not give great returns.” Idris begins. “With oil prices soaring to unprecedented levels and remaining there, the prognosis for the industry is really bleak.”
“Drastic change is absolutely vital for our survival. The general public everywhere must be prepared to face sharply higher prices for air travel now, or be prepared to stomach even higher prices later when the number of participants become fewer and competition fizzles out. Airlines cannot continue to subsidise passengers anymore.
Put bluntly, if these adjustments don’t take place - and quickly - the airline industry will collapse.”
However Idris believes that there is cause for hope; “if those adjustments happen
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