A level playing field and removal of protectionist and monopolistic barriers to encourage competition in both the aviation sector and in business, is the impassioned call of Azran Osman Rani (pictured left), chief executive officer of AirAsia X, Malaysia’s long-haul budget carrier.
In implementing such moves and allowing companies to compete, Malaysia will benefit economically. “It won’t cost the government money, but at the same time it will benefit consumers and create a healthy industry,” Azran said on the sidelines of the StarBiz-ICR Malaysia CEO forum held in Kuala Lumpur recently.
He hopes such measures would be part of Malaysia’s Budget 2011, which will be revealed in Parliament by Prime Minister Datuk Najib Tun Razak on Friday (October 15).
“We’re less concerned about taxes or subsidies. We’re more concerned about the Government creating a level playing field. We’d like to see policies that encourage competition and therefore innovation.”
Azran also said he is hopeful that the Government would announce incentives at the Budget that would promote the local tourism industry.
Azran also lamented the airline’s inability to get the rights to fly on the Kuala Lumpur-Sydney route. This popular route is a “goldmine” as demand is very high and currently national airline, Malaysia Airlines, is the sole carrier to fly to the Australian city from Kuala Lumpur.
AirAsia’s Group CEO Dato’ Sri Tony Fernandes has repeatedly asked for the Malaysian government to open the Kuala Lumpur-Sydney route but has been rebuffed.
Another route AirAsia X is eyeing is Jeddah. Azran said Jeddah and Sydney are popular and, with insufficient flights to these destinations, Malaysian consumers have to pay more to travel to them, thus leading to loss in opportunity cost and loss of money for the country.
Pictured right: AirAsia X’s A330-300 aircraft
“The most popular routes where Malaysia is losing billions of ringgit for not allowing us (AirAsia X) to fly there are Sydney, Jeddah and Istanbul.”
Apart from being popular travel destinations these cities are also important “economic centres”, which will help promote foreign investments and educational links.
According to Azran, Singapore and Bangkok provide up to four different airlines serving these strategic routes compared to only one airline in Malaysia.
• Photos courtesy of AirAsia X
Azran Osman Rani is speaking at the WIT Conference during an airline session on October 19.
Featured image credit (Damaged wall): Ockra/iStock
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