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Tuesday, May 27, 2008

Business, Economic and Finance: Malaysia's AirAsia seeks fair competition

"International Herald Tribune (May 15, 2008)- AP KUALA LUMPUR, Malaysia: Budget carrier AirAsia urged the government Thursday to rein in unfair competition by rival Malaysia Airlines."

AirAsia is now crying unfair competition. The News Straits Time reported that the MD of MAS refuted the allegation that MAS is subsidising the low cost promotion programme with the international route revenue. So why did AirAsia make this allegation?

I have a sneaky feeling that they 2008 numbers are bad and they want to prepare the shareholders and the general public of this possibility. They are now using the "bogeyman" technique to push the blame to someone else, i.e. to the "scary, unprofessional, dinosaur" MAS.

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