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Economist sees reasons for MAS-AirAsia merger

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Even a short-term collaboration could improve their chance of surviving the current trying times, says Yeah Kim Leng. FMTNews MalaysiaAirlines AirAsia

Malaysia Airlines and AirAsia have figured in talks of a merger since the Covid-19 crisis began.

Yeah Kim Leng of Sunway University said even a short-term collaboration could enhance their survival, through reducing idle capacity and sharing resources. “Where their flight destinations do not overlap, they also help to improve Malaysia’s connectivity with the world and forge new tourism markets, both inbound and outbound. In short, the two airlines generate higher economic benefits if their business operations are profitable and sustainable,” he said.

Yeah said: “Their potential demise due to the Covid-19 pandemic would be an irreparable loss to the economy.”

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