Thursday, 03 Dec 2020 10:07 AM MYT
Malaysia Airlines’ experience in providing high-class full carrier services can add value to the merger as well. According to CAPA, Malaysia Airlines was given the “5-star airline” rating and was the first airline to be consecutively awarded with the “World’s Best Cabin Crew” by Skytrax UK. As for productivity rate, the UPM research paper highlighted AirAsia’s level of crew productivity was three times more than Malaysia Airlines. AirAsia was also found to be better in aircraft turnaround times and average aircraft utilisation rate.
In addition to managing costs without sacrificing service quality — which is probably something that AirAsia’s experience could add value to — a consolidation of market rivals combined with a business plan for better cost management and improved economies of scale could be the way to go. Therefore, MAB’s fleet of widebody aircrafts may be focused on long-haul, full-service flights and higher-end markets prioritised for the hub-and-spoke model of flight paths.
For example, the merger may allow access to landing rights and flight paths that are crucial to fully tap into the Islamic tourism market. The Mastercard-CrescentRating Global Muslim Travel Index 2019 estimated 140 million international Muslim visitors in 2018 with a projection of 230 million by 2026.
Who has more debts?
Theres no way airasia would merge with MAS.
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