Regulate civil aviation market
WHEN the dust settles on the Covid-19 pandemic, the local civil aviation industry will have to be regulated to create a level playing field for Malaysia Airlines, AirAsia and Malindo Air.
With Malaysia having a population of a slightly more than 32 million, the local market for domestic, regional and international travel has been in a state of overcapacity for several years as these three airlines compete fiercely for a slice of the cake. It is mind boggling that this has been overlooked by the authorities.
With low cost carriers (LCCs) having changed the landscape of the global aviation industry, it is evident that full service airlines are at a disadvantage when competing with the LCCs on the same routes. There must be a balance of supply and demand in the market for airlines to operate efficiently and viably.
Having worked closely with the civil aviation industry in the Asia Pacific, including in Malaysia, for 32 years, allow me to say that the market should be regulated before borders closed by the Covid-19 pandemic are reopened to enable airlines to operate efficiently. Landing rights for domestic and international flights should be equally shared by the airlines. The carriers should be given a time frame to utilise the rights, failing which the other local airlines should be given the option to take up the additional services.
Flying will never be the same in post-pandemic times. Local carriers, like all airlines across the globe, are bleeding from the impact of travel restrictions due to the pandemic. This has resulted in carriers grounding most of their fleet due to the suspension of flights to most destinations in their networks.
With the number of people infected with Covid-19 rising every day across the globe, the aviation industry is flying into more turbulent weather as it is unclear when the dust on this health crisis will settle. When travel does start up again, it is inevitable that airlines will have to re-start operations on a smaller scale, with some routes being dropped. No airline in the world would be able to resume operations from where it left off.
The authorities concerned should start evaluating the frequency with which each airline should operate on a route. This should not be viewed as restricting them but basically as a means to regulate the market.
The airline industry is in turbulent weather. Failure to regulate the market may result in one or more airlines being pushed put of the business.