LETTERS: It is surprising that with local airlines still not able to operate domestic flights at pre-Covid-19 levels due to the pandemic, the Malaysian Aviation Commission (MAC) has issued an Air Service Licence for a new low-cost carrier.
It will be the third low-cost carrier and fourth carrier in Malaysia. With Malaysia Airlines Bhd, Malindo Air and AirAsia already competing fiercely for a slice of the fragmented market, a fourth carrier will only dilute it further.
The three carriers are currently offering skeletal domestic services, uncertain when market conditions will improve and what the future holds for the global aviation industry.
These airlines will have to brace for overcapacity. The pandemic has seen many airlines on the global front either ceasing operations or drastically reducing the workforce due to a massive cut in their respective fleets.
In this regard, local airlines have not been spared. Hundreds if not thousands of workers, including pilots and engineers, were shown the door.
Although the new low-cost carrier has a window period of one year to launch operations, the airline has yet to reveal what plans it has for the network.
Media reports have indicated that the airline will initially startup with two leased Airbus A320 aircraft, an indication that it would operate destinations of four to five hours flying time.
What the low-cost carrier needs to start operations are the necessary regulatory clearance and air operating certificate issued by the Civil Aviation Authority of Malaysia.
There is no indication when demand for domestic and international flights will return to pre-Covid-19 levels.
Market conditions for domestic and international flights have also changed considerably over the last two years. Recovery has been muted in most markets, including the local front, due to changing travel conditions and restrictions.
Of course, local carriers are keen to see their operations expand. The outlook seems to be better as it has been projected that the domestic market is expected to fully recover by the end of 2022.
In another sense, the global pandemic is the first of its scale in a new era of interconnectedness.
Before the spread of Covid-19, travel and tourism had become one of the most important sectors in the world economy, accounting for 10.4 per cent of the global gross domestic product (US$9.2 trillion) and more than 330 million jobs worldwide.
In 2020, due to the pandemic, global GDP declined 5.5 per cent, while 62 million jobs were lost in the travel and tourism segment.
Flying will never be the same as pre-pandemic.
WILLIAM DENNIS
Subang Jaya, Selangor
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times