Thursday, July 13, 2017

Collusion between MAS and Malindo?

As an investor, I do look at pricing to understand where some of the companies stand (Airasia especially). I have been following pricing by Malindo and MAS as well besides Airasia. As previously mentioned, I notice that pricing by both Malindo (soon to be Batik Air) and MAS (Firefly) has actually gone up since 2014. These trend is actually going the opposite direction against oil price which has dropped around 40% from then on.

Recently, there is this trend where there seems to be pricing collusion between Malindo and MAS (I say Malindo because it seems to be the bigger airline flying off Subang). Two - three weeks ago, I noticed that Malindo was pricing its tickets at RM129 while MAS was pricing them at RM128.

Today it is RM139 by Malindo and RM138 by Firefly (owned by MAS). See below.

Malindo's minimum pricing for its ATR flights

Firefly's flight pricing
Does the Malaysian Competition Commission really exist?

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