AirAsia, MAS in cheap fares war

26 April, 2007，KUALA LUMPUR: Its the price war thats not price war. Just two rival airlines having a bit of fun by slashing their fares at the same time. Between them Air Asia and Malaysian Airlines will be offering more than one million tickets with Air Asias lead-in special at RM1 for some domestic flights. MAS has been shadowing the spectacular growth of AirAsias low cost operations with increasing concern. The national carrier has this week been assessing the implications of AirAsias US$2.3 billion order for 10 Airbus A330-300s with five options to fly long haul international routes. The cost-efficient A330 aircraft will allow AirAsia passengers to fly to destinations in the UK, China, Australia and elsewhere in some of the most modern aircraft in the skies.AirAsia is offering low-price seats for international destinations with one-way flights from Kuala Lumpur to Macau from RM61 and Chiang Mai from RM41. Flights to holiday destinations like Phuket will cost RM21 or to Hanoi from RM51. MAS cheapest flight is for a one-way ticket to Penang, Johor Baru or Kuantan. The sales period for AirAsia is until April 29 for travel between October 1 and March 29 next year. The MAS sales period for domestic tickets is until April 28 for travel between May 7 and May 22, and, June 14 and June 30 with some conditions. Both AirAsia and MAS are offering the cheap fares for online bookings only and prices do not include airport tax and other surcharges. In another twist to the fast changing aviation environment in Malaysia, MAS will take-over the countrys rural air services from budget carrier Fly Asian Xpress. Transport Minister Chan Kong Choy said, "The government is responsible for the rural air services, so we will (now) appoint Malaysia Airlines to manage it through Firefly."

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