PAL WARNS MARKET NEW ENTRANTS WILL CAUSE PRICE WAR

Dino D'Amore
By Dino D'Amore December 13, 2010 11:55

PAL WARNS MARKET NEW ENTRANTS WILL CAUSE PRICE WAR

Philippine Airlines (PAL) has warned that the entry of regional aviation airline such as Singapore’s Tiger Airways and Malaysia’s AirAsia could cause overcapacity and potentially a cutthroat price war resulting in losses for local carriers.

“The question is, will the market be big enough for more players as big as them,” said PAL president and chief operating officer Jaime Bautista. “If there is a price war, this will mean losses for all airlines in the country, not just PAL.”

He said that while the increased competition and lower prices would be good for passengers, the lower profits for airline companies might lead to a decline in new investments and the slowdown in the industry’s expansion.

Dino D'Amore
By Dino D'Amore December 13, 2010 11:55
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