Airline fares in Malaysia to dip on overcapacity

AIRLINE fares in Malaysia are expected to decline by 8 per cent over the next five years as aggressive fleet and network expansions outpace travel demand.

Airlines globally have lost US$390 billion over the past three decades because of growing competition. But in Malaysia, it is arguably even more competitive as there are three to six carriers on most major routes.

At the same time, capacity has been increasing by 10 per cent annually against a demand growth of 8 per cent.