KUALA LUMPUR: The recent approval given to the two new airlines – SKS Airways Sdn Bhd and MYAirline Sdn Bhd – to operate in Malaysia could be a boon to rejuvenate the local commercial aviation sector, said, aviation analysts.
However, they have mixed views over the approval due to market saturation and intensified competition from existing airlines that still operate in a tepid environment.
Winair AS founder and aviation consultant Hans Jørgen Elnæs said there was room for more competition in Malaysia as the new airlines could offer attractive fares that might stimulate demand for air travel.
“The new airlines may be at an advantage with relatively limited debt or zero-debt, operating in low-cost base. This will trigger the competition to become more efficient and lower cost, which could result in lower fares,” he told the New Straits Times (NST) recently.Read more