Malaysia’s Malindo Air enters Indian skies

06-Jan-2014 Intellasia | Business-standard | 6:00 AM Print This Post

Competition among Airlines on the India-Malaysia sector has intensified, with the entry of Malaysia’s Hybrid airline Malindo Air, which has chalked out aggressive expansion plans between the two countries and seeks to further expand to South East Asia. According to experts, the new entrant is expected to shake up Malaysia Airlines and AirAsia, who are the strong players in this sector.

Malindo Air on Thursday launched a daily service on the Kuala Lumpur-Tiruchi-Kuala Lumpur sector.

Speaking to reporters, on the sidelines of launch, Chandran Rama Murthy, Chief Executive Officer, Malindo Air, was quoted saying the airline would increase the frequency of the flights on the sector to three flights a day by the end of 2014 and the second frequency, an evening service, will be introduced by May.

The airline is also planning to launch services from Mumbai and Ahmedabad to Kuala Lumpur in February and March and introduce new services from Kuala Lumpur to Chennai, Madurai, Coimbatore, Cochin, Hyderabad and Visakhapatnam.

According to CAPA Centre for Aviation, Malindo is targeting the Kuala Lumpur-Delhi and Kuala Lumpur-Mumbai routes, which currently are only served by Malaysia Airlines (MAS). It will compete against AirAsia to Tiruchirappalli and will become the only carrier linking Kuala Lumpur with Ahmedabad.

It further added, with 23 weekly flights to India it will give the carrier 4,140 one-way seats in the Malaysia-India market. This equates to about a 15 per cent share of total capacity in the Malaysia-India market. Once all the Malindo flights are added, MAS will see its share of capacity in the Malaysia-India market drop by about 7ppts, from 53 per cent in late December 2013 to 46 per cent in late Mar-2014. AirAsia’s share will drop by about 8ppts from 43 per cent to 35 per cent, said CAPA.

MAS currently operates 66 weekly flights to six Indian destinations while AirAsia has 56 weekly flights to five Indian destinations, according to OAG data.

According to the report, around one million origin-destination (O-D) passengers travel between India and Malaysia per annum on non-stop services.


Category: Regional

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