Strong headwinds swirl around AirAsia-MAS merger

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Transport specialists say the merger may cause less competition, a monopoly and a surplus of aircraft. FMTNews Plane Covid19

Talk of a merger between AirAsia and MAS re-emerged in a news report on Friday.

“AirAsia appeals to the tourists market, students, pensioners and migrant workers, among others,” he said, while MAS appeals to the corporate sector such as civil servants who travel on government warrants, business travelers and high end tourists. Talk of a possible merger arose on Friday when senior minister Mohamed Azmin Ali told Reuters the proposal was one of the options to “save” the two airlines as the Covid-19 crisis batters the industry.

Harridon said there is also a clash of two different working cultures and philosophies. “One has to decide on how to approach this delicately as this involves employees of both sides,” he added.

 

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Has the so called experts made any bsse assumption of the viability of the merged airline over the next 3 years. Will it not be best to allow bankruptcies and then rebuild when there is s chance of that the new airline can operate profitably?

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