Any talk on merging airlines would be against the policy of the liberalisation of air services for the domestic market in Malaysia and Asean.
This was done in the spirit of cooperation among Asean nations, so that they can enjoy economic benefits of the healthy competition, and move towards a more liberal aviation policy that would eventually replace the bilateral air services agreement . These are the two distinct market segments of the passenger air market which have now been recognised worldwide, including by the International Civil Aviation Organization .
In the United Kingdom and Europe, the government’s role is to set up a level playing field in every segment of the aviation market. Airlines with sufficient capital could come in and operate in a healthy market competition by offering a choice of departure airports, service capacity, departure times and, obviously, low fare structure.
In Malaysia, healthy competition among airlines within each of the market segments should actually be enhanced and encouraged by the airline regulator as competition will continue to push fares down and increase the service levels among the competing airlines.
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