AirAsia flies high in price-sensitive market
12 Mar 2018 17:38:29
nst.com.my
AirAsia is better positioned than full service carriers (FSCs) in the price sensitive domestic market as Malindo Air and Malaysia Airlines Bhd undertake capacity reductions.
CAPA Centre for Aviation chief analyst and Southeast Asia chief representative Brendan Sobie said air travel yields are low everywhere, particularly in the domestic market in Malaysia.
“It is difficult for airlines to charge premium or to command high price on domestic routes. Many passengers travel domestically in Malaysia, mainly from Sabah and Sarawak to Kuala Lumpur. They are very price sensitive,” he told NST Business recently.
Sobie said Malindo and MAB can price their fares higher in some international markets as passengers are not price sensitive and keen to pay more for a full-service product.
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