When you have a sore thumb, it always attracts more attention, it is uncomfortable and to say the least a bloody nuisance.
Lately the CEO of Airasia, Malaysia low cost carrier, is behaving like one, accusing its competitor of having unfair advantage and competing squarely on the routes they operate.
Has he lost the sense of competition.
Airasia were given regional domestic monopoly before, it turned out to be in such a mess that they eventually gave up, due to incessant complaint, and handed the job back to MAS. Billions were lost in the short stint by Airasia, lost of regional connectivity affects tourism and business. Air worthy plane were rendered grounded when the responsibility were handed back to MAS. It took MAS more than 6 months to have the system in sync again.
Unlike MAS, there were nothing to show that Airasia had intended for a long haul in regional domestic business but only to make a fast buck.
MAS, now have make plans for new crafts to be in service and complaints are virtually a thing of the past, the system is working like clockwork.
Accusation/campaign of late, sound more like personal attack on MAS CEO, rather than on why Airasia gives better value to its customers.
Idris Jala, CEO of MAS, in my opinion is no ordinary corporate mastermind. He has been able to turn MAS (a GLC) around and at a surprisingly short period of time. Not many government appointed employee in government-linked-companies (glc) have done this and come to think of it, Idris Jala is the only one so far. MAS then, a company that was haemorrhaging and to many, had no chance to recover and best just fold it. But recovered it did, under present CEO guidance, it manages not only to compete internationally but also against LCC and still make exceptional returns to its shareholders.
Airasia is not going to be popular, if they force MAS hands to increase its fare through government intervention.
For the first time in over 40 years of Malaysian history, people are able to enjoy travelling with reasonable comfort, in 3rd class fare. Why the complaint, after all CEO of Airasia said their business had improved since MAS ‘unfair competition’.
When you have politicians butting in, it means complaint has reached them to apply a bit of pressure, failing which will be drastic change and the beginning of a down trend in a competitive atmosphere.
You never want politicians to interfere in any business, especially someone from the transport ministry, which had a record of inefficiency and lopsided decisions. They had just extended PUSPAKOM exclusive monopoly for another 15 years.
We were just about looking forward to a more competitive vehicle inspection services, come 2009, but they just can’t let go this money making machine.
CONSUMERS Vs ONG KEE KEAT
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