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Friday, December 19, 2014

Sorry, Jentayu, there is no more space in Malaysia for another airline

Sorry, Jentayu, there is no more space in M'sia for another airline
KUALA LUMPUR - There is no more space for another local carrier to operate out of Kuala Lumpur or any other city in the country.
Which is why a senior aviation official is puzzled as to how Jentayu Danaraksa Sdn Bhd (JD) came up with the idea of setting up a “premium economy” airline called Fly JD.
JD announced such plans at a press conference in Shah Alam on Monday.
The official, who spoke on the condition of anonymity, said the local aviation industry was already “saturated”.
“Premium economy prices are about 25% higher than economy class.
“The one problem with this is that more customers are becoming cost conscious,” he told The Rakyat Post.
The source went on to question as to where JD intended to get customers from and wondered if it intended to poach customers from Malaysia Airlines.
He also pointed out that setting up an airline was not as easy as JD thought it was.
The industry expert said there many licences that an airline needed to obtain before it could begin operating and this, he stressed, was an uphill task, adding that it would also need landing rights.
He also asked which local industry player would be willing to give up the rights to JD, arguing that even if they did, it would only be for the “unprofitable routes”.
“The open skies policy next year will also make it harder for new airlines to start up as they will going up against established legacy and low-cost carriers.”
The expert believes JD had not thought through carefully the cost and requirements of setting up an airline.
With JD changing its plans about the national carrier twice, the source wondered what was to say they would not do so again. - http://www.therakyatpost.com

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