Malaysian airlines drop airfare pact

Airline Industry Information, Nov 12, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

Twenty-five Malaysian airlines have decided to suspend their price-regulating pact in a move aimed at boosting air travel.

All carriers operating in or out of Malaysia, excluding Singapore Airlines, are involved in the price-regulating pact - known as the Market Development Programme - which has been in force since 1 April 1983.

The move is aimed at supporting the travel industry, which has been badly affected by the 11 September terrorist attacks on the United States. Commencing Monday (12 November), travellers can expect cheaper air fares, however there are concerns that a possible price war could add more pressure to struggling airline companies and travel agencies, reported Kyodo News.

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