AirAsia’s Fernandes: New Malaysia Airlines pricing strategy ‘will be a disaster’

AirAsia Group CEO Tony Fernandes, speaking at the CAPA-ACTE Global Summit, stated (27-Oct-2016) airlines trying to be full service at the front and low cost at the back are pursuing an unsustainable model. For example the current Malaysia Airlines pricing strategy, which is offering heavily promoted tickets at the back "is music to my ears. It will be a disaster," Mr Fernandes said. "Airlines can't do everything." He predicted that eventually the industry will be split into purely low cost and full service players, with LCCs focusing on value conscious consumers and FSCs focusing on passengers that are prepared to pay more. "When that happens we will become a more efficient industry," Mr Fernandes said.