Malindo can be a threat to AirAsia

Rusdi delivering his speech at the signing ceremony between Nadi and Lion Air to form Malindo Airways on Tuesday. The Lion Air group will provide the money needed for the airline to grow and is targeting 12 planes a year over the next 10 years. – Reuters

AIRASIA supremo Tan Sri Tony Fernandes has to be publicly sanguine about the threat that Malaysia’s newest and second low-cost airline (Firefly does not count as one in our books) Malindo Airways poses.

But the shrewd operator that he is, he is much more likely to take the threat seriously in private and no doubt has his plans to reduce the threat and keep it to a minimum. It will not be at no cost though for a competitor puts pressure on margins and hence profits.