KUALA LUMPUR: The airline industry is no stranger to suspension or even bankruptcy. This situation is particularly true for low-cost airlines.
According to Universiti Kuala Lumpur Malaysian Institute of Aviation Technology economist (aviation and aerospace) Assoc Prof Major Mohd Harridon Mohamed Suffian, the aviation industry has always been intricate and complex.
In the context of the sudden closure of MYAirline, he said: “It’s unfortunate that the philosophy of operating a low-cost airline is implicitly complicated with burgeoning overheads, including flight and maintenance crew, fuel prices, spare parts, operational costs, and maintenance works,” he told Bernama recently.
Mohd Harridon pointed out that the low ticket prices offered by the airlines had put a strain on the financial standing of the carriers.
“Any increase in flight frequencies would raise aircraft utilisation and the wear and tear of the airplane.
Meanwhile, Endau Analytics founder and aviation analyst Shukor Yusof said the weakening ringgit is one of the major challenges for the airline industry.
“I believe all airlines, not only the low-cost carriers, are struggling at the moment.
“This situation is exacerbated by the lack of regulatory oversight, inexperienced management and flawed business model,” he said.
Shukor pointed out that the government should quickly come up with a smart framework and policy to safeguard the interests of the airlines, airport operator, and most importantly the people.
