Malaysia Airlines (MAS) to withdraw from Penang - Medan and Kuala Lumpur Macan flight routes.
Malaysian Airlines (MAS) will cease to operate flights for Penang - Medan as of 29th March 2009 and cease flying the Kuala Lumpur - Macau flight route as of 22nd March 2009, reported Flight Global
The airline faces stiff competition from low-cost Indonesian and Malaysian carriers in times when travelers are saving on expense not to mention the New Fiskal tax regulation in Indonesia that affects the popular Medan - Penang travel route where Medanese could travel Free from Fiskal payment.
Before the new Fiskal Tax regulation imposed in January, Medanese prefer to travel through Penang and chose it as a gateway to other oversea countries compared to Singapore since they are able to save on the Rp1.000.000 Fiskal payment when traveling through Penang. But now, with the new regulation where there is no exception to Fiskal Payment for traveling through Penang & Kuala Lumpur. Medanese will simply fly direct to Singapore.
This has also bring to an end MAS’s attempt to compete with low-cost carriers, while its own low-cost carrier Firefly still remains undersold since Firefly faced direct competition from MAS.
Firefly is MAS’ ATR turbo-prop operation. It has a lower cost base than MAS mainline and is thus more able to compete against low-cost carriers such as Air Asia on short-haul routes.
The Penang-Medan route after March 29 will be left to Firefly, Kartika Airlines, Wings Air and Indonesia AirAsia. After March 22 Air Asia will be the only airline to fly the Kuala Lumpur-Macau route.
With the withdrawal of Malaysia Airlines for Penang Medan flight route, there is no more “Standard - full serviced” flights that is serving this route leaving passengers no other choices but to low cost carriers also known as Budget Airlines.
