AirAsia's protestation of unfair competition against the government decision to scrap the floor price of MAS fares is quite amusing to say the least. The government decision was simply to allow MAS to decide its own fares to bring about a more level-playing field in this cut-throat industry.
Thus, this government decision as well as the one to return MAS some trunk domestic routes are important for MAS to realise its business turnaround policy. We, the people of Malaysia, would not want our national carrier to go under, would we?
The fact that Singapore's Temasek Holdings has got shares in AirAsia and its change of policy to allow other low-cost carriers like AirAsia to now fly into Changi makes me more suspicious now.
AirAsia should not be unduly worried. You have your market, MAS has its own market.
