The new airline, which was part of the proposed Orca project, would have served the Australian and Malaysian markets as well as regional services in Asia with A330s. Since the new company would have been established in Malaysia, a new bilateral supplier would have been essential to guarantee the traffic rights necessary for entry into the Australian and Malaysian markets. The current bilateral system is obsolete, having last been extended in 2008, allowing the introduction of AirAsia X services in Australian capitals. AirAsia X, which launched its services in 2007, chose Gold Coast as its first route due to the lack of restrictions for Malaysian airlines operating the Gold Coast. In 2008, AirAsia X converted Melbourne and Perth, then Sydney in 2012. The traffic jams with Sydney were a Malaysian government issue that prevented AirAsia X from giving access to the line for years to protect MAS. However, further development of AirAsia X and MAS capabilities to Australia`s four capitals is now hampered by bilateral constraints. This is the second in a series of articles on the urgent need for urgent negotiations on extended bilateral agreements in Australia. The first part dealt with bilateral constraints in some important North Asian markets, including mainland China and Hong Kong, as well as the United Arab Emirates. This section deals with the constraints in Australia that are currently facing Southeast Asian airlines, including Malaysia and the Philippines.
But it`s still important that LCs have unlimited access. Australia must recognize the value of this segment as well as the value of foreign broadband carrier services and pursue more liberal bilateral relations throughout Southeast Asia, including Malaysia and the Philippines. Mercurio R (2018) AirAsia postpones IPO until 2019. Phil Star Global, September 8, 2018. www.philstar.com/business/2018/09/08/1849531/airasia-moves-ipo-2019. Access Qantas codeshare on June 1, 2019 with Emirates on the Emirates Melbourne-Kuala Lumpur service. As a result, the current freeze on additional flights to Australia`s four capitals, Qantas, and its partner Emirates, will benefit. While Qantas would no longer benefit from expanded bilateral cooperation with Malaysia, the Australian authorities should recognize the overall benefits to Australia that would result from enhanced services for both MAS and AirAsia X. “The ATRs that result from bilateral air services agreements concluded by the Malaysian government are in its legal possession. The Malaysian government has entrusted Mavcom with responsibility for assigning ATRs to Malaysian airlines,” MAVCOM noted.
“MAVCOM`s decision to reject our requests for routes therefore is completely contrary to the Malaysian Ministry of Transport`s policy, which is advocated when negotiating bilateral air services agreements with other countries.” AirAsia Japan collapses after the AirAsia Group was too bearish while ANA had no experience, the Aviation Centre, on June 23, 2013, centreforaviation.com/analysis/reports/airasia-japan-collapses-after-airasia-group-was-too-bearish-while-ana-lacked-experience-114196 (the last time on June 1, 2019). AirAsia X currently holds 7% of seating capacity between Australia and Southeast Asia, reaching more than 8% in July 2013, making it the fifth largest airline in the market after SIA, MAS, Qantas and Thai Airways. AirAsia X`s market segment is expected to continue to grow as it enters the market for Thailand and launch services on the Adelaide-Kuala Lumpur line. But it will grow even faster if Australia forges a new bilateral with Malaysia and opens expansion on the Kuala Lumpur routes to Melbourne, Sydney and Perth. Malaysia is the second largest market in Southeast Asia for Australia, after Singapore, whose airlines have unlimited access to Australian destinations. Malaysia is the 6th largest international market for Australia and the largest market not served by an Australian airline, which instead discourages the Australian side from negotiating a new bilateral agreement.