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Yields decline at M'sia Airlines, AirAsia

Passenger numbers are up but fare war worsens after the entry of Malindo

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Robust: AirAsia's cost-efficiency and strong balance sheet will help it endure the tough environment, says an analyst. But its profits may suffer in the interim. - PHOTO: AIRASIA

PASSENGER growth in Malaysia's aviation sector has been strong, but this hasn't carried over into the yields of Malaysia Airlines (MAS) and AirAsia. Call it the "Malindo Effect". A fare war has escalated with the entry of Malindo Air, a joint venture between Indonesia's Lion Air and Malaysia's