Market structure, pricing, performance and strategies for the last ten years of the Malaysian Domestic Airline Industry

Essay by yinwenboUniversity, Master'sA-, June 2004

download word file, 5 pages 3.9

1. The Malaysian Domestic Airline Industry

In Peninsular Malaysia, the main cities are served by an efficient network of highways and major roads. In most cities and big towns, the road network is relatively good, with the exception being the less-developed rural and interior areas. Here, possibly the only way to get around would be by river transportation. A good and reliable train service runs the length of the Peninsula and covers the West and East Coast. The rail network also links up with Singapore and Thailand. Public transportation in the cities includes buses, taxis and light railway. The domestic air network is comprehensively served by several local airlines.

There are seven domestic airlines that operating within Malaysia, it is Air asia, Malaysia airlines, Pelangi air, Berjaya air, SEAGA Airliness, Sabah air and transmile. But among those domestic airlines there are only two big domestic airlines company that operating widely within Malaysia.

It is Malaysia airlines and Air Asia.

We know already that Malaysia airline is the biggest airlines industry in Malaysia. It serves both, domestic and international flight which Breaking the barriers of the new millennium, their fleet of nearly 100 aircrafts serve more than 100 destinations around the world not including their domestic destinations. They serve 32 domestic destinations within Malaysia.

Air Asia is a domestic airlines industry in Malaysia which is own by Tune Air 99.25 per cent and Mofaz Air for the rest. AirAsia, meanwhile, operates 26 flights weekly to Kota Kinabalu, 28 flights to Kuching, two flights to Labuan, seven flights to Langkawi, and 14 flights each to Penang, Kota Bahru and Miri. Except that, they serve other destination also, it is alor setar and tawau. Recently their performance is boost and they will closely to take over the domestic airlines market. They have...