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Market Structure, Pricing, Performance And Strategies For The Last Ten Years Of The Malaysian Domestic Airline Industry

1314 words - 5 pages

1. The Malaysian Domestic Airline IndustryIn Peninsular Malaysia, the main cities are served by an efficient network of highways and major roads. In most cities and big towns, the road network is relatively good, with the exception being the less-developed rural and interior areas. Here, possibly the only way to get around would be by river transportation. A good and reliable train service runs the length of the Peninsula and covers the West and East Coast. The rail network also links up with Singapore and Thailand. Public transportation in the cities includes buses, taxis and light railway. The domestic air network is comprehensively served by several local airlines.There are seven domestic airlines that operating within Malaysia, it is Air asia, Malaysia airlines, Pelangi air, Berjaya air, SEAGA Airliness, Sabah air and transmile. But among those domestic airlines there are only two big domestic airlines company that operating widely within Malaysia. It is Malaysia airlines and Air Asia.We know already that Malaysia airline is the biggest airlines industry in Malaysia. It serves both, domestic and international flight which Breaking the barriers of the new millennium, their fleet of nearly 100 aircrafts serve more than 100 destinations around the world not including their domestic destinations. They serve 32 domestic destinations within Malaysia.Air Asia is a domestic airlines industry in Malaysia which is own by Tune Air 99.25 per cent and Mofaz Air for the rest. AirAsia, meanwhile, operates 26 flights weekly to Kota Kinabalu, 28 flights to Kuching, two flights to Labuan, seven flights to Langkawi, and 14 flights each to Penang, Kota Bahru and Miri. Except that, they serve other destination also, it is alor setar and tawau. Recently their performance is boost and they will closely to take over the domestic airlines market. They have a very good price strategy to increasing their customer volume and gain more profit. That's why today there is a tight competition between Air Asia and Malaysia airlines to serve the domestic flight market.2. The market structure of Malaysian domestic airline IndustryThe Malaysian domestic airline industry is a services industry for transportation and cargo services. It has its other competitive firm which they have differentiate services when we look at the transportation industry scope. There are variety transportation that people can pick out to take based on their ability and necessity. There are buses, taxis, and light railway. Each of it has its different advantage and disadvantage. There are many bus firms and taxis firms. Bus firms in Malaysia such as LP Jaya Sdn Bhd, Lim Tjong Kooi Bas Kilang, Metro bus Nationwide Sdn Bhd, Transcoach Sdn bhd and still many buses service firms, taxis firms and railway that provide transportation services in Malaysia. And there are so many corgo services in Malaysia such as Gulfship Agencies Sdn Bhd, Jets Express Services Sdn Bhd, K.C.Dat.Sdn.Bhd, Sebah Cargo Handling...

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