Sabah ‘no’ to flights slash

KOTA KINABALU: Sabah, as a minority shareholder in Malaysia Airlines, is objecting to the carrier's move to slash flights from the state capital to various international destinations.

State-owned Warisan Harta Sabah Sdn Bhd said besides affecting investment and tourist arrivals, MAS' move would discourage other airlines from flying out of Kota Kinabalu International Airport.

Warisan Harta, the state government's investment arm, represents the state as the minority shareholder in the airline.

Its chairman Datuk Ramlee Marahaban said MAS should focus on fulfilling its social obligations instead of merely thinking about its commercial ambitions.

Ramlee said there were concerns that the recent share swap deal between Khazanah Nasional the Federal Government's investment arm and Tune Air Sdn Bhd would result in both MAS and AirAsia merely protecting their commercial interests.

He said the Sabah government's views as a minority stakeholder in MAS were not sought before the share swap deal was worked out.

MAS will suspend its twice weekly Kota Kinabalu-Osaka service from Jan 6 and thrice weekly Kota Kinabalu-Perth flights from Jan 31.

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Sabah Air urged to fill air access vacuum

The Government should heed the call of air travellers in Sabah and Sarawak to review the recently concluded collaboration between MAS and AirAsia because it had effectively ended any competition in the airline industry to the disadvantage of the rakyat.

"The two airlines now being partners in business seem now more interested in profits than in carrying out its corporate social responsibility role with emphasis on international routes," said Labuan Consumer Council (LCC) Chairman Fauziah Datuk Din.

She said when the alliance was developed through a share swap between the two airlines, concerns had been expressed by many that East Malaysian travellers would suffer but the Transport Ministry assured this would not be the case.

She said it turned out that the Government doesn't know best as not only flights between KL, Kuching, Labuan and Kota Kinabalu been reduced but the costs have also soared with KL-KK flights fetching up to RM700.

"And even this depends on availability of seats."

"I was told flights between Sandakan and Penang on AirAsia can go up to RM1,000 and this also is fully booked."

She said Firefly was becoming the public's favourite but was stopped altogether following the MAS-AirAsia collaboration.

"Adding to this, it was reported that four MAS direct international flights to Kota Kinabalu would be suspended from next year," she said.

"If nothing can be done, the other options are to either bring back Firefly or for Sabah Air to consider applying to serve the KK-Kuching-Labuan-KK route by leasing aircraft," she said.

She said air connections were important to Sarawak, Labuan and Sabah and the Transport Ministry should not lose its focus since its has been tasked to improve public transportation under the National Key Results Area.

"The subsidies given to MAS should now be questioned since the rakyat are not benefitting."

Continue reading at: Sabah Air urged to fill air access vacuum
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Sabah And Sarawak Will Have Domestic Flights

SIBU -- Deputy Transport Minister Datuk Abdul Rahim Bakri said the people of Sabah and Sarawak had no cause to worry as they would still have domestic flight services despite Firefly's termination, at the beginning of this month.

He said MasWing, a subsidiary of Malaysia Airline System (MAS) would take over the service.

"The government will not allow the people to face unnecessary inconvenience and there will be no reduction in the frequency of flights.

I believe MAS will eventually take over from Firefly," he said during a press conference after a briefing on the progress of the Sibu Airport redevelopment project.

He said MAS and AirAsia were still in the midst of a high level discussion to come up with a comprehensive framework in order to solve the matter.

"MAS has to do a study as to whether there will be significant demand for flights between the two states and to Kuala Lumpur. It will rise to the occasion as MAS is there for business," he said.

Rahim said FireFly Flight Sdn Bhd discontinued its services due to escalating operation costs.

Meanwhile, commenting on the Sibu Airport redevelopment work costing RM136.888 million, he said it was ahead of schedule to meet the September 12, 2012 completion date.

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MASwings to begin flying within BIMP-EAGA in February 2012

KUCHING: MASwings has been given the green light to fly within the BIMP-EAGA region early next year.

Transport Deputy Minister Datuk Abdul Rahim Bakri said the Cabinet had approved MASwings’ application to expand its service to Brunei, Pontianak in Kalimantan, Indonesia and Davao in Southern Philippines.

“The flights will start in February. I was told that they are planning to fly from Kuching to Pontianak, Kuching to Brunei, and Kuching to Kota Kinabalu, Tawau and Davao,” he told a press conference at Kuching International Airport yesterday.

Following the latest greenlight, MASwings, a wholly-owned subsidiary of Malaysia Airlines (MAS), is expected to fly the Bandar Seri Begawan-Davao City-Tarakan-Balikpapan (both in Kalimantan) sector from Kota Kinabalu and Kuching.

Abdul Rahim believed MASwings’ flights within BIMP-EAGA region would enhance commerce, trade and tourism for Sabah and Sarawak.

“MASwings ATR 72-500, which can accommodate about 70 passengers, are more suitable and efficient to serve this (BIMP-EAGA) region than if the sector is operated by bigger aircraft,” he added.

He said the Federal Government was fully committed to Sabah and Sarawak, especially in providing air connectivity.

He noted that the Government was paying RM150mil to MASwings in subsidy for the airline to operate the rural air services in Sabah and Sarawak.

“We subsidise MASwings’ flights to remote areas even if there is no passenger,” he said.

The recent share swap between MAS and AirAsia had created a lot uncertainty and anxiety among the state’s tourism players.

Continue reading at: MASwings to begin flying within BIMP-EAGA in February 2012

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Sarawak government admits MAS-AirAsia share swap impacted tourism

KUCHING: The state government acknowledged that the recent MAS-AirAsia share swap had affected the state’s tourism sector.

“The lack of public information on the future plan of this joint collaboration between MAS and AirAsia has created anxiety among industry players.

“Furthermore, Sarawak has experienced cancellations of flights and this has caused inconvenience to the public,” noted Tourism Assistant Minister Datuk Talib Zulpilip at the State Legislative Assembly yesterday.

He was responding to state DAP chairman Wong Ho Leng (DAP-Bukit Assek) who asked how the collaboration had affected Sarawak both positively and adversely.

On Firefly ceasing to operate its Kuala Lumpur-Kuching and Johor Bahru-Kuching routes from Oct 31, Talib also noted that the move had undoubtedly left behind a vacuum.

“To address the issue, the state government has written to the federal government to express concern and displeasure on the lack of communication and consultation. The abrupt cancellation of firefly services after the announcement of the swap and collaboration between the two airlines do not augur well for the state.

“The state government has also initiated dialogues and meeting sessions to seek opportunities for foreign airlines to operate in Sarawak. The state government through Malaysia Airport Holdings Bhd has offered attractive incentives such as three years free landing and parking fees and marketing support,” he said.

Talib said the government, however, had no intention to establish its own airlines.

“We are looking at various options including the positioning of MASWings as a regional airline to service Sarawak, Sabah and BIMP-Eaga region,” he added.

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Discontinued FireFly services to have minor impact

KOTA KINABALU: Firefly’s decision to discontinue its flight services to Sabah could have some minor impact on the number of domestic tourists visiting the State but the effect would be short term, said Tourism, Culture and Environment Minister Datuk Masidi Manjun.

“Yes, there will be an impact in the short run but I believe they (Malaysia Airlines) are in the business to make money, so eventually if there is demand obviously it would make sense for them to add the number of flights between here and KL or other destinations,” he said.

Malaysia Airlines Group on Tuesday embarked on a network rationalisation programme which would see its subsidiary, Firefly, concentrating on serving short-haul turboprop operations and Malaysia Airlines focusing on enhancing its premium full-service offerings.

The programme will be undertaken over a two-month period on a sector-by-sector basis and will result in all Firefly jet aircrafts being redeployed into MAS’ operations by December 4.

The group assured that it would remain committed to Sabah and Sarawak and will continue to operate all services to Kota Kinabalu and Kuching.

Masidi said Firefly had contributed to the increased availability of flight services to Sabah, resulting in an increase of 21 per cent in domestic arrivals in the State as of August.

In this regard, he said it was hoped that MAS or AirAsia would add more flights between Kota Kinabalu and destinations in the peninsula to make up for the termination of FireFly’s services.

“MAS wants to ensure it is profitable. The demise of Firefly is obviously one of the steps they need to do in order to rationalize their operations, at least in East Malaysia,” he said, while expressing hope that the matter would be resolved soon.

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Sabah Wants More MAS, AirAsia KL-KK Flights

KOTA KINABALU -- Sabah hopes Malaysia Airlines (MAS) or AirAsia would add more flights between Kuala Lumpur and Kota Kinabalu following the termination of Firefly's services.

State Tourism, Culture and Environment Minister Datuk Masidi Manjun said Firefly, a subsidiary of Malaysia Airlines Group, had contributed to the increased availability of seats resulting in an increase of 21 per cent in domestic arrivals in Sabah as of August.

"There will be an impact on Sabah's domestic tourist arrivals in the short run.

"But I believe airlines are in the business of making money and eventually, when they know there is demand, obviously it will make sense for them to add on more flights," he told reporters after opening a seminar on Sabah's prospects and retrospects after colonial rule here today.

Masidi said the airline group needs to rationalise its operations in East Malaysia to ensure it does not lose more money.

While hoping the matter could be resolved in order to meet increasing demand, he expressed gratitude that passengers can still choose to travel by either MAS or AirAsia.

On Tuesday, the group said it had embarked on a network rationalisation programme with Firefly concentrating on short-haul turboprop operations and MAS focusing on its premium full-service offerings.

Continue reading at: Sabah Wants More MAS, AirAsia KL-KK Flights
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Cancellation of Firefly operations hampers development of Sarawak tourism industry

SIBU: The cancellation of Firefly operations between Peninsular Malaysia and Sarawak and Sabah would severely hamper the development of the state tourism industry.

PKR Lanang division chairman George Chen said the government should, in fact, encourage more foreign airlines to operate these routes to attract foreign investments and ensure that the local produce could be exported promptly.

“However, instead of bringing in more airlines, what we have here is the cancellation of the Firefly operation,” he told a press conference here yesterday afternoon.

The proposed merger of AirAsia and MAS and the swapping of shares among the directors recently have sent shockwaves across the aviation industry with many speculating the eventual cancellation of the Firefly services in the Sarawak and Sabah routes.

“We suspect there are some other agendas behind the merger of the AirAsia and MAS,” Chen said.

If it was for political reasons, Chen said, it would defeat the 1Malaysia slogan of ‘People’s First, Performance Now’.

Chen urged the governments of Sarawak and Sabah to take immediate steps to get Firefly to resume their flights in the two states.

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Limited air connectivity suffocating Sarawak tourism industry

MIRI: Poor air connectivity is biggest stumbling block in getting Miri on the international tourism radar, said Assistant Minister of Communication Datuk Lee Kim Shin yesterday.

Lee said the local authority and tourism players had been striving hard to project Miri as a lively and vibrant resort city not only for the domestic and international markets but the response thus far had been below expectations.

“Although the city is blessed with a wide selection of tourism assets, without strong air connectivity support there is nothing much the operators can do,” he told The Borneo Post yesterday.

Lee, who is also chairman of the Miri City Incorporated (MCI)’s Tourism Working Committee, said the limited air connectivity issue had frustrated the business community.

“I would like to appeal to the government to, perhaps, grant more international routes to Miri … in addition to the current direct routes to Singapore provided by AirAsia.

“MAS should also consider redesigning another international connecting route for the Kuching-Miri-Hong Kong/China/Korea sector, instead of having a transit point in KK.

“KK is now overflowing with international flights. MAS should look into alternatives, probably making Miri another gateway hub of Sarawak to go overseas,” Lee suggested.

He added that the state tourism sector deserved better because places like Miri could offer culture, adventure and nature (CAN)-based tourism products which people from European countries adore.

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Sarawak regional airline solution

KUCHING: The state is working on a solution to the flight woes faced by Sarawak in the wake of the route rationalisation exercise by MAS and AirAsia.

Tourism Minister Datuk Amar Abang Johari said he was in discussions on a possible option to resolve the situation.

However, he said he could not reveal any details yet as the talks were confidential and involved “a very important player”.

“We are still in the process of preparing our next move. Hopefully, we may get good news but I can’t reveal at the moment what we’re going to do, except that we feel that the state is looking into the possibility of a regional airline.

“How it will be done, let us do it. We are tackling the problem,” he told reporters at the Borneo International Beads Conference’s gala dinner on Saturday night.

Johari was asked to comment on the route rationalisation following the share swap between MAS and AirAsia, which had led to reduced flight frequencies to Sarawak.

The state’s tourism and hotel sectors had raised concerns over the matter as reduced flights meant fewer visitor arrivals.

In addition, they were concerned that abrupt flight cancellations and lack of communication from the airlines on their plans were causing uncertainty in the industry.

Earlier this week, the Sarawak Tourism Federation and other industry players submitted three memoranda expressing their concerns to MAS, the state government and the Federal Government.

Continue reading at: Sarawak regional airline solution
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Sarawak Tourism Federation wants aviation policy and tourism strategy

KUCHING: The Sarawak Tourism Federation (STF) is sending a memorandum to the state government requesting it to formulate a formal aviation policy and strategy in order to protect the state’s economic interests, especially in the tourism sector.

Its president Audry Wan Ullok said they were also requesting the state government to seriously consider setting up a new airline to serve the needs of the state, in view of Sarawak’s poor air connectivity and the possible emergence of a domestic airline cartel that prioritises services focused on Peninsular Malaysia.

“The state government could take a controlling interest in a new airline and seek an established airline operator as a joint venture partner to manage the new Sarawak-based airline.

“In view of our geographical location, air accessibility and connectivity is vital for Sarawak in the areas of trade, travel and tourism. Moreover, it serves to promote national integration as well as having important social function to reunite families, within and outside of Sarawak,” she told a press conference yesterday.

The announcement of a share swap between Malaysia Airlines (MAS) and AirAsia had resulted in a somewhat secretive route rationalisation exercise.

This exercise took place with limited communication from both MAS and AirAsia, and it had resulted in the cancellation of flights by MAS, and is expected to result in the termination of services of Firely at the end of this month, she pointed out.

She expressed concern about the consequences of the share swap, apart from the major inconvenience to travellers, adding they also forwarded a memorandum to both MAS and the federal government to express their concerns.

She said STF also felt that the abrupt cancellation of flights and the lack of communication from MAS and its subsidiaries were creating uncertainty in the marketplace.

“The current silence from MAS is damaging MAS’s reputation and negatively impacting Sarawak’s tourism industry. MAS must start to communicate and engage with the tourism industry and its customers and issue regular statements and updates.

“So far we have not seen any official statements from MAS and AirAsia yet,” she said, adding without improved air access, all the money spent on marketing by Sarawak Tourism Board, Sarawak Convention Bureau and the private sector will come to nothing.

Audry said in the past, competition between MAS and its subsidiaries on the one hand and AirAsia had been good for consumers in east Malaysia, and resulted in cheaper airfares and increased flights to destinations in Sarawak.

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Sarawak Tourism: Time to self-rationalise

Route cuts and flight frequency reduction have tourism players up in arms but efforts to make Sarawak deserving of MAS and AirAsia’s attention are not there.

WE are now entering week-three of flight uncertainties between the state and other parts of Malaysia.

Three memorandums on the confusion arising from the airline route rationalisation exercise will today be submitted to MAS, the Federal and state governments.

The memorandums are by Sarawak Tourism Federation and backed by chambers of commerce across the state.

I need not reiterate what had already been said and reported. In a nutshell, the state has become the first to lose out in the MAS-AirAsia rationalisation. Insiders now say decision makers are promising a “win-win solution”, but that is yet to be seen.

To be fair, the national aviation and tourism industries might emerge stronger; but for now, there is a whole lot of confusion, and answers have not been forthcoming.

Nonetheless, just as it is easy to lay blame on others, more importantly, now is also the time to reflect on our own weaknesses.

First things first, it must be said that whenever Federal decision makers decide on cost saving exercises (like this rationalisation and other austerity drives) Sarawak is often the first to be affected.

An argument can be made that Sarawak and Sabah have perpetually been on “austerity drives”. I do not think this is a controversial point to make as it is so common to hear government and opposition politicians alike talk about how our infrastructure is “20 to 30 years behind peninsula’s”.

However, a counter argument can be made that fund allocation according to population is the fairest way to distribute money.

Taken from that perspective, because the respective populations of Sarawak and Sabah are so small, we have been unable to get more funds compared to densely populated areas like Kuala Lumpur, Penang and Johor.

In fact, about half of Malaysia’s population is concentrated in the western corridor of the peninsula. Therefore, every ringgit spent there benefits more people than the same amount spent in Terengganu, Sabah or Sarawak, even though these are the big three oil and gas producing states.

Continue reading at: Sarawak Tourism: Time to self-rationalise
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MASwings ‘clears the air’ on rural route, flight frequency issue in Sarawak

KUCHING: East Malaysian community airline MASwings Sdn Bhd (MASwings) has taken a stand to clarify certain issues pertaining to its serviced rural routes and flight frequencies.

The call was made in response to a media report quoting the Bintulu Chinese Chamber of Commerce and Industry as saying ‘current services are not up to expectation and that businesses in need of easy connectivity are feeling the effects of cancelled routes and reduced flight frequency’.

The association also claimed that in Bintulu, MASwings had cut down its flights to-and-from Kuching to only one daily, of which the return flight from the state capital was at 4.25pm with a transit in Sibu.

“We haven’t cancelled or revised any flight on our Kuching-Bintulu route. The fact about the one-per-day flight is not correct,” affirmed MASwings’ managing director Datuk Mohd Nawawi Awang in a telephone interview with The Borneo Post yesteday.

He added that since March last year, MASwings had been providing twice-daily return flights for its Kuching-Bintulu route. The additional flight, which flies between Kuching and Bintulu via Sibu, became fully operational in March this year.

“So, we actually have two-plus-one flights between Kuching and Bintulu – not just one as claimed.”

In the said media report, the Bintulu Chinese Chamber of Commerce and Industry’s president Datuk Sia Hiong Ngie stated that the chamber had received many complaints – both from the business community and public – about the increasingly poor air services, to which he added that the situation could get worse because of Malaysia Airlines – or MAS, MASwings’ parent holding – and AirAsia Bhd’s flight rationalisation exercise.

Sia even suggested a joint venture (JV) involving MASwings and other local aviation companies to handle routes in the state as well as to Brunei.

In response to this, Nawawi commented, “To reiterate, MASwings is a subsidiary of MAS and subject to governance under the ministry. Any decision to form a JV has to gain a ‘go-ahead’ approval from our top management, as well as from Ministry of Transport since we have the rural air services agreement with the government.

“We are striving towards meeting the needs of the community and submitting any operational proposals – including the formation of a JV as well as to mount additional flights – but it has to go through MAS as well as the government,” he explained.

Continue reading at: MASwings ‘clears the air’ on rural route, flight frequency issue in Sarawak

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AirAsia-MAS tie-up offers growth opportunities for Sarawak's Hornbill Skyways

KUCHING: Hornbill Skyways sees great potential in helicopter services in Sarawak following the Malaysia Airline-AirAsia collaboration.

Although AirAsia and MAS’ Firefly flights are affordable there is already public anxiety as to whether they (people) are still going to enjoy the cheap fare.

“Although Hornbill Skyways may find that the plan is capital and labour-intensive, they must also see it as a business venture worth pursuing and a great social obligation to Sarawakians. We can’t deny the fact that the majority of the people still want affordable air fares,” Dato Ahmad Ibrahim, an entrepreneur said when met recently.

He proposed that Hornbill Skyways look into the suggestion because “if realised it will become a pride for Sarawakians”.

“It would be great if Sarawakians take up this venture because we can then have our own airline. Besides, it will create more jobs.”

Ahmad, however, said that to realise this dream, Hornbill Skyways would have to expand, diversify into airline service provider and increase its fleet and manpower from time to time to be more effective.

He acknowledged that such venture and running an airline company would need massive investment and capital.

Sarawak Tourism Board CEO Datuk Rashid Khan meanwhile believed that MAS’ collaboration with AirAsia would not adversely affect the state’s tourism sector.

“The airline would continue to support the state tourism industry,” he said, adding that a new
airline would emerge following the MAS-AirAsia collaboration.

On talks that Firefly was downsizing and cancelling flights and routes in the wake of the collaboration, Rashid said he would talk in detail about the implication of cancelled routes in the next few days.

On the suggestion that Hornbill Skyways should venture into airline business, he said the company would need huge capital to see it through.

Social activist Datuk Anthony Nait said it would take great political will to see the helicopter service provider take the challenge.

“Besides, huge capital is needed to run an airline company. But if Hornbill Skyways really wants it and successfully realises the plan, then we can say it is our pride,” he said.

State Democratic Action Party (DAP) treasurer Violet Yong who is also Pending assemblywoman said there must be some good reasons for routes to be cancelled.

On the cancellation of Firefly’s Kuching-Johor route (now) and the Kuching-Kuala Lumpur on Oct 31, Yong said if the routes were not attractive enough they were bound to be cancelled.

Since airline business and tourism sector are usually interlinked, miscommunication between MAS and the state tourism players could be a factor.

Continue reading at: AirAsia-MAS tie-up offers growth opportunities for Sarawak's Hornbill Skyways

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Firefly’s Kuching-Kuala Lumpur route scrapped

KUCHING: Firefly, the two-year-old affordable wing of Malaysia Airlines (MAS), has cancelled its second route between Sarawak and Peninsular Malaysia, with more cancellations likely.

The airline has ceased to sell Kuching-Kuala Lumpur tickets for flights after Oct 31 on its website, and tour agents are aware of the cancellation.

Firefly’s Kuching ticketing office yesterday said, ticket holders for flights beginning Nov 1 “will most likely be put onboard MAS”.

“That is most probably what will happen.

“That is what we are telling ticket holders for now. We are not sure of anything at this point.

“A new (flight) schedule has not been released,” said the ticketing office personnel, who declined to be named as he was not authoritised to speak on the matter.

The Kuching-Kuala Lumpur cancellation comes after Kuching-Johor was cancelled on Sept 15.

Firefly was flying three routes between Sarawak and Peninsular Malaysia (and with high frequency) around mid year.

The only Firefly route left for Sarawak is between Sibu-Kuala Lumpur.

Firefly’s website is still selling tickets for those flights.

However, a well-placed source within MAS’ Sarawak management said yesterday that Firefly’s online ticket sales “should not be considered as an indicator of flight availability”.

“My staff and I have been told to wait for an internal announcement (that will come) by the end of this week,” the senior staff said. “We think it will be regarding the route rationalisation. Stage by stage the Firefly flights are taken off one sector at a time.”

The Malaysian aviation industry is undergoing its most extensive flight rationalisation exercise in recent weeks. This follows the surprise announcement of a MAS-AirAsia shareswap deal in August.

Since then, it has been an open secret that Firefly’s jet aircraft routes would be scrapped. Media reports have said it was not a matter of “if” but “when”.

Sarawak Tourism Federation president Audry Wan Ullok, when asked about this yesterday, said talk was that Firefly would cease all jet aircraft routes by November.

She said the deal to end such a large portion of Firefly’s operations – this is according to her sources in the state Tourism and Heritage Ministry – was brokered and finalised over the recent Hari Raya.

Continue reading at: Firefly’s Kuching-Kuala Lumpur route scrapped
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Support for MASwings’ Sarawak-Brunei initiative

KUCHING: BIMP-EAGA Malaysia Tourism Council is keen to see MASwings ply the Sarawak-Brunei route because the oil-rich sultanate could serve as another gateway into the state.

Its chairman Datuk Wee Hong Seng said the council would write to the Ministry of Transport to urge it to give MASwings the green light to start this service.

“I do not see any reason for not approving it since MASwings wants to fly the route,” he told reporters after opening the celebration of Pa Sien Kung’s birthday at King’s Centre here on Saturday.

The former president of Sarawak Tourism Federation asserted that any connectivity to the state “is a plus point” for the tourism market.

“If MASwings is willing to fly, why hold it back? It is not difficult for the Ministry of Transport to sort things out if the issue is for MASwings (to only) operate rural air services.

“I do not think it has something to do with the open sky policy. What matters is that over 100 seats can be easily filled if MASwings serves the route.”

Wee said the council supported MASwings to fly not only Kuching-Brunei but also Kuching-Jakarta and Kota Kinabalu-Brunei.

If this materialised, it would certainly enhance connectivity in the BIMP-EAGA region.

Responding to the possibility of Firefly terminating services in Sarawak and Sabah, he said the swapping of shares between Malaysia Airlines (MAS) and AirAsia should not result in a monopoly.

Continue reading at: Support for MASwings’ Sarawak-Brunei initiative
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Air Accessibility A Strategic Issue For Sarawak Tourism

KUCHING -- Air accessibility into Sarawak has become a very strategic issue, in view of the positive growth of visitor arrivals, said Sarawak Tourism Board (STB) chief executive officer, Datuk Rashid Khan.



Expressing concern over the recent share swap agreement between Malaysian Airlines (MAS) and AirAsia, he said tourism players would need to lobby for other airlines to land here.



"Their plans to rationalise operations will definitely have a negative impact on the tourism industry, which depends very much on air accessibility to bring tourists into Sarawak," he told reporters during the breaking of fast with tour agents and media representatives here last night.



MAS and AirAsia had on Aug 9 entered into a collaboration agreement to establish a framework to explore the possibilities of mutual co-operation.



He said Firefly, whose average load factor into Sarawak was about 70 per cent, could not operate as a low cost carrier at present.



"However, the move by Malaysia Airports to increase the airport tax, will not have any major impact, especially for medium and long haul customers as it represents only a very minimal portion of their travel expenditure," he added.



Continue reading at: Air Accessibility A Strategic Issue For Sarawak Tourism

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Sabah, Sarawak feel chill wind of MAS and AirAsia's move

BURIED in the headline news about the share swap involving Malaysia Airlines and AirAsia last week was the announcement of boardroom changes in MAS that caught most people unawares.



For the first time ever, the Sabah and Sarawak governments are no longer represented on the MAS board of directors.



The opposition Sabah Progressive Party was, however, quick to spot it. Its president, Datuk Seri Yong Teck Lee, lamented that it was symptomatic of how his state has systematically been relegated from matters of national concern that touched on Sabah.



As of this writing, there has been nary a public explanation or reaction from either the Sarawak government or the opposition on the matter.



Unless it has quietly sold out, the Sarawak government remains a shareholder of MAS and it was on that basis that either the state secretary or the state financial secretary traditionally sat on the MAS board.



That has to be a matter of some import for the state. Air travel remains a critical service in Sabah and Sarawak despite improvements in other modes of transport.



Already, travel industry players in Sarawak are expressing concern about the implications of the airlines' share swap, particularly as they relate to a possible curtailment of healthy competition and any detrimental effects on fare pricing and travel choice for air passengers.



Initial misgivings about the supposed airline industry rationalisation a few years ago in Sarawak had proven correct although the advent of competition in the industry later on blunted some of the concerns if not entirely removed them.



Any lessening of competition among the domestic airlines now will only revive earlier concerns such as a further reduction in the number and frequency of air services between the major towns of the two states.



Then again, in the case of Sarawak, there is the additional concern that Kuching will further lose out as an air hub with direct links to international destinations as both MAS and AirAsia consolidate their investments in major hubs in Kuala Lumpur and Kota Kinabalu.



Kuching requires a major and concerted effort to realise its aspirations for international air connectivity and that effort may not be forthcoming if left entirely to the two major airlines, with no one from the state government side pushing the state's agenda from within the airlines' top decision-making structures.



The Federal Government has said that it would remain an integral player in the airline industry. That may prove both a blessing and a millstone for all those with a stake in the success of the industry.



Continue reading at: Sabah, Sarawak feel chill wind of MAS and AirAsia's move

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MAS-AirAsia Collaboration Places Tourism Players In Uncertainty - Sarawak Tourism

MIRI -- The recent collaboration agreement between Malaysian Airlines (MAS) and AirAsia has created uncertainty among tourism players in Sarawak.



Following this, the Sarawak Tourism Board (STB) plans to discuss issues regarding its effects with the two airlines soon.



Speaking to reporters during the breaking of fast with tour agents and media representatives here last night, STB Chief Executive Officer Datuk Rashid Khan said tourism players in Sarawak were concerned as the airlines had also announced that they would rationalise their operations.



The rationalisation plan would raise the issues of flight frequency, air fare and the roles to be played by the airlines and its subsidiaries, he said.



"All these are issues that put us to be uncertain. We want to engage them (MAS and AirAsia) and we have already indicated that," he said.



He described the MAS-AirAsia deal as "a worrying issue" as compared to the move by Malaysian Airports to increase the airport tax.



"Airport tax in Malaysia is relatively low and represents a small portion of the cost of fares," he said.



MAS and AirAsia had on Aug 9 entered into the collaboration agreement to establish a framework to explore the possibilities of mutual co-operation.



Continue reading at: MAS-AirAsia Collaboration Places Tourism Players In Uncertainty - Sarawak Tourism

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Sarawak tourism players fear new airline deal

SIBU: The swapping of shares between MAS (Malaysia Airlines) and AirAsia is creating a ‘turbulence’ of sorts among tourism players here, who fear that it may spell an end to zero or low fair offers.



Managing director of Equitorial Tours and Travel Sdn Bhd Robert Tan echoed concerns from members of the public that the deal, although set to revolutionise the airline industry, would give rise to a single dominant player in the market.



This, he opined would drastically reduce the bargaining power of consumers, a familiar scenario some 10 years back when MAS was the sole airline in the domestic market.



“We have been swarming with calls from members of the public since the strategic partnership was announced, voicing concern that the deal will break the current status quo.



“Many fear that with one dominant airline, it will give rise to monopoly. They are concerned that it is a step backward perhaps, into the last 10 years or so where MAS had a monopoly of the market.



“And if indeed that is the case, there is a likelihood that air travellers will no longer get to enjoy the low fare which they have benefited all these years,” Tan said when asked to comment on the deal between MAS and AirAsia.



The national flagship carrier and AirAsia have agreed to set aside their rivalry and work together after signing a share swap agreement on Wednesday.



The longtime (Equatorial) travel agent had a hunch that some changes in terms of fares were likely to take place in the next few months or so.



He said while the consolidation was seen as part of the preparations for the open sky policy come 2013, the needs of the masses must be taken into consideration.



Tan reasoned that if the existing pricing strategy was maintained, it would certainly be beneficial to air travellers.



“This is so because with lower air fare, more people will be encouraged to travel, and likewise, tourists will want to visit Sibu. Airline plays a crucial role in helping to promote tourism industry,” he said.

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