What's Next For Malaysia Airlines And AirAsia?

By Prem Kumar Panjamorthy KUALA LUMPUR, May 3 (Bernama) -- Now that the share swap deal between Malaysia Airlines and AirAsia is off, what does the future hold for both the national premium service carrier and low-cost carrier? The share swap deal was put together nine months ago as one of the many initiatives to help boost Malaysia Airlines, whose financial performance has lagged in the last two years or so. But several months down the road, it has been discerned that the move has not gone down well with the majority of the 26,000 workforce at Malaysia Airlines. The concern of the disgruntled employees is understandable: they just do not want Malaysia Airlines to be led by the nose and benefit the other party. Now that they have been cut loose from a seemingly unpalatable partnership, they would have to roll up their sleeves and start helping the revival of Malaysia Airlines. And they should heed the words of their group managing director Ahmad Jauhari Yahya as their clarion call: "It's about survival and winning back the customers again." They would have to help him stem the losses at Malaysia Airlines and make the national carrier the preferred choice of many travellers. For AirAsia, it has to stay competitive and ward off many other low-cost airlines snapping at its heels. If it can keep its fares low, service levels high and yet roll in the money, it should continue to be a role model for other low-cost carriers. Although the share swap deal is now history, both the national aviation champions can still collaborate. They need not scuttle each other's businesses as they are in different business segments -- one in premium, the other low cost. They can collaborate on a need basis on various fronts like joint procurement of parts and spares to give more bang to the buck, so to speak. AirAsia can also overhaul its aircraft at Malaysia Airlines' maintenance, repair and overhaul facilities to save on foreign exchange outflows. Upon hindsight, there are many areas where they can partner each other without having to cross-hold each other's shares or have boardroom representation. In the final analysis, both Malaysia Airlines and AirAsia should know and should do what they do best -- filling up their aircraft with satisfied customers. They need to show "Malaysia Boleh". --BERNAMA