QUOTE(topearn @ Mar 2 2014, 10:15 AM)
It is not stupid to increase price if the promotion priced offered in the past is making losses as what is the point of having full seats if each seat U sell, U loss say RM10 ? MAS just can't compete against AirAsia using price as AA expenses is so much lower as expected cos it is a low cost carrier....AA has 3 times more aircraft than MAS and yet, AA can make do with much less employees.
Due to the massive loses although the increase of passenger load factor, now MAS decide to increase the price, so definitely many people will stop taking MAS.
If their price is on par with other airline like Singapore airline or other airline, why would 1 choose MAS instead of those more premium airline?
The 1 thing that can sustain MAS from total collapse is the ONE WORLD programme they joined.
The reduce of passenger will cause drop in revenue and this DOES NOT reduce their expenses...
I doubt MAS cannot offer a retrenchment scheme with such a powerful union..
So with a lower revenue, the lost they made will be even worst!!
So the most effective way to reduce the losses is to increase the revenue...
They should study the strategy of RyanAir or AirAsia...