Figure 1: Future and current routes served by Malindo Air from its
hub in Kuala Lumpur [2]
Based on Table 1 and Figure 2 shows
that, Malaysia Airlines is the airline serves more Indian cities and offers
more seats capacity than other airlines, which represents 45% of the market. Besides that, Air Asia is second largest
airlines in the market which represents 35%, is serving mostly to southern
cities of Trichy, Bengaluru and Chennai; and Kolkata in Northern East of India.
Air India-Express, the low cost unit of Air India however, is the smallest
airlines on Kuala Lumpur-India, as the airline offers limited seats and
operates from Chennai. Table 1, shows the Kuala Lumpur-India routes served by
Malaysia Airlines, Air Asia, Malindo Air and Air India Express. Meanwhile
Figure 2 shows, percentage of seat capacity between Kuala Lumpur and India
served by the airlines.
Table 1: Kuala Lumpur-India routes served by Malaysia Airlines, Air
Asia, Malindo Air and Air India Express[3].
Route/Airlines
|
Malaysia
Airlines
|
Air
Asia
|
Malindo
Air
|
Air
India Express
|
Kuala
Lumpur – Delhi
|
14
|
7
|
||
Kuala
Lumpur – Mumbai
|
12
|
7
|
||
Kuala
Lumpur – Kolkata
|
7
|
|||
Kuala
Lumpur – Chennai
|
14
|
14
|
5
|
|
Kuala
Lumpur – Trichy
|
21
|
7
|
||
Kuala
Lumpur – Bengaluru
|
12
|
4
|
||
Kuala
Lumpur – Kochi
|
7
|
7
|
||
Kuala
Lumpur – Hyderabad
|
7
|
|||
Kuala
Lumpur – Ahmedabad
|
4
|
Figure 2: Percentage of seat capacity between Kuala Lumpur and
India served by the airlines[3] (cited on 9 September 2013)
As Malindo air will introduce in
Kuala Lumpur-India market, the airline will represent 17%, making the airline
as third largest airline in the market. However, the airline is facing
competition from other Malaysia Airways on three routes. On routes from Kuala
Lumpur to Delhi and Mumbai, Malindo air will compete with national
carrier-Malaysia Airlines. Malaysia Airlines is already establishes and
dominates on these routes. Malaysia Airlines offering 14-and 12- a week flights
to Delhi and Mumbai by operating mix of Boeing 777-200 ER and Boeing 737-8 as
compared to Malindo air which offers daily flights on each route, using 180
seats of Boeing 737-900ERs.
Besides that, Malindo air is also
facing fierce competition with Asia’s largest low cost carrier, Air Asia on Kuala
Lumpur – Trichy route. The route is actually the first Indian route served by
Air Asia and currently, is operating thrice daily flights on this route with
total capacity of 3780 seats as compared to Malindo Air’s (1260 seats).
However, Malindo Air is a hybrid airline, which is focus different market from
Air Asia’s (low cost/budget travellers). Malindo Air’ Boeing 737-900ERs are equipped
with two cabin classes: Business and Economy classes. Malindo Air’s Business
class product offers 45” seat pitches and installing with a personal inflight
entertainment (IFE) on every seats. For Economy class, Malindo Air is offering
standard economy class with low- cost price. Each seat is also equipped
personal IFE. Based on both fares (on economy class-31 January 2014) indicates
that Air Asia (RM 321) offers cheaper fare by 25.6% as compared to Malindo
Air’s (RM 429)[4,5]. Figure 3, shows the Malindo Air’s routes that will compete
with Malaysia Airlines and Air Asia.
Malindo Air has not direct
competition on Kuala Lumpur-Ahmedabad route as other airlines do not serve
between these cities. Anyhow, the airline may face indirect competition with
Singapore Airlines on Ahmedabad- Asean. Singapore Airlines is flying from its
home based in Singapore and utilizing Airbus 330-300s and operates three weekly
basis. Moreover, based on Wikipedia.com[6] stated that Thai smile, regional arm
of Thai Airways International is also operating to Ahmedabad. However, the
airline reportedly temporary suspended due to unclear reasons.
Figure 3: Malindo Air’s routes that will compete with Malaysia
Airlines and Air Asia by comparing seats number.
Figure 4: Malindo Air's Iatest promotion to Indian cities [5]
Malindo Air has launched
destinations to Dhaka and plans to Chittagong
Besides expanding its operation
to India, Malindo Air has already launched daily flight to Dhaka, the capital
city of Bangladesh. The introduction of the new service has intensified
competition among airlines served. Currently there are four other airlines
serving on this route, they are: Malaysia Airlines, Biman Bangladesh, United
Airways of Bangladesh and Regent Airways[3]. Based on Figure 4 shows that,
Malaysia Airlines is also dominates on this route which represents 51% of total
capacity. Followed by Biman Bangladesh, Malindo Air, Regent Airways and finally,
United Airways. The reason Malaysia Airlines dominates on this route due to
numbers of frequency, which is the airlines flying 15 times a week and using
large aircrafts of Boeing 777-200ER and Airbus 330-300 (as well as Boeing
737-800)[7].
Figure 5: Percentage of seat capacity on Kuala Lumpur-Dhaka by
airlines
Anyhow, Malindo Air is not facing
with competition on Kuala Lumpur-Chittagong route . Chittagong will be second Bangladeshi cities as the airline
starts its operation from beginning from 16th January 2014 and operating thrice
weekly flights. Chittagong is Bangladesh’s second largest city and populated by
6.5 million people and an important cities for commercial, industrial and
financial. Moreover, Chittagong Port is the one of busiest port in Bengal Bay
and Indian Ocean[8]. According to the airline’s website, the airline will offer
RM 399 for one way (for all Kuala Lumpur- Bangladesh route in economy class)[5].
Figure 6: Malindo Air's latest promotion to Bangladeshi destinations
References
[1] Star Online
[2] Wikipedia.com- Malindo Air
[3] KLIA timetable
[4] Air Asia’s website
[5] Malindo Air’s website
[6] Wikipedia Ahmedabadairport
[7] Malaysia Airlines timetable
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