Nationalistic landmines aside, analysts say Malaysia Airlines-SIA makes business sense | Malay Mail

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Nationalistic landmines aside, analysts say Malaysia Airlines-SIA makes business sense

A merger, which would blur the national identity between Malaysia Airlines and Singapore Airlines, would be a pragmatic choice, but is fraught with landmines due to nationalistic sensitivities. — Reuters pic

“No right-thinking government will want to jeopardise the prospect, no matter how remote, of [MAS] being rejuvenated. By working together, the two Southeast Asian airlines would also be in a strategic position to fend off the growing dominance from Malaysian budget carrier AirAsia, Shukor reportedly said.

Another analyst, cited by SCMP who declined to be named due to the sensitive topic, said mergers between rival national carriers were not new and had proven to be mutually beneficial to both companies in raising their regional competitiveness. He then referred to European airlines such as Air France and KLM’s partnership to become a larger Franco-Dutch group in 2004 and the British Airways-Iberia merger — the last of the continent’s airlines to merge in 2010.

 

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Merger What could MAS offer to one of the world’s best airlines Teach them how to make losses? How to enrich crony suppliers? How to behave like a charity? How to leech off the taxpayers? SIA better off having alliances elsewhere. MAS needs to shut down.

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