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Another MCO will kill aviation industry, expert warns

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Transport consultant says Putrajaya will have to step in to rescue local airlines. FMTNews Airasia MCO

Aviation specialist Roger Teoh says a new lockdown would probably have a bigger impact on AirAsia than on other domestic airlines.

Prime Minister Muhyiddin Yassin, in a live telecast from Parliament on Monday, said the government could order a new lockdown if the number of new Covid-19 infections continued to rise. He said the government must step in to help the industry survive if it felt an urgent need for a new lockdown. This could be done through subsidies, such as a reduction in the airport tax, he added.

Aviation specialist Roger Teoh said a new MCO would likely deal a more devastating impact on AirAsia than on other domestic airlines, largely due to the management’s past decisions, including the one manifested in its policy of selling planes and leasing them from the buyers.

 

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