Malaysian minister steps into airline price war

0 Comments | AFP, May, 2008

KUALA LUMPUR (AFP) — Malaysia's transport minister said Thursday he would try to resolve a cut-throat fare war between the national carrier and budget airline AirAsia, whose founder has complained of unfair competition.

Malaysian Airlines said Wednesday it would give away fares weekly to 20 Asian destinations, prompting criticism from Air Asia's founder Tony Fernandes since the government subsidises some of the national carrier's international flights.

Both Malaysian Airlines and Air Asia had earlier announced similar offers for domestic flights, even though soaring oil prices and a slowing global economy are squeezing the aviation industry.

"I personally will step in to investigate," Transport Minister Ong Tee Keat told the official Bernama news agency. "I...