trans element
Posts: 76
Joined: Wed May 30, 2001 7:01 pm

This Is TOO Good To BE True Man!

Thu Nov 15, 2001 9:53 am

Fly the world from M'sia - at a 50% discount

Nov 13, 2001

WANT a cheap holiday in these times of recession? Just pop across to Kuala Lumpur for cheap, cheap tickets to just about anywhere in the world.

Beginning today, international airfares out of Malaysia will be cut by up to 50 per cent. The across-the-board discounts are being offered by 25 airlines operating out of Malaysia.

In a move to bolster the sagging travel industry, the 25 airlines have decided to suspend their price regulating market development programme (MDP), reported Malaysia's Business Times.

However, Singapore Airlines (SIA) is not a signatory to the MDP.

All other carriers, flying into and out of Malaysia, are signatories to the MDP - which was introduced on April 1, 1983, with the aim of improving turnovers.

Under the MDP, carriers and participating travel agents, who sell tickets below agreed base rates, face large fines for violations.

Some aviation experts fear the worst. Analysts said that the latest move, which could see airfares slashed by up to 50 per cent, could drive some out of business.

A Japan Airlines (JAL) spokesman, for instance, said: "We could see a price war similar to what happened during the Gulf War when the programme was also temporarily suspended and there was a free-for-all.

"For now, we will maintain our fares and see what our competitors do."

KLM sales manager for Malaysia, Ms Estee Ng, said the airline would see how the market reacts first and then take a decision.

An Emirates spokesman was more positive.

He said: "While there will be some jostling in the marketplace initially, fares will eventually settle at a level that all airlines find acceptable.

"For example, Singapore Airlines pulled out of the MDP several years ago and it is still doing well.