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(The Straits Times) - MALAYSIAN national carrier MAS has revoked a little-known privilege that budget carrier AirAsia boss Tony Fernandes had been enjoying: discounts of up to 75 per cent when flying on its bitter business rival.
ANGER: Mr Fernandes had allegedly angered MAS staff with his comments. According to a May 28 letter written by MAS chief executive Idris Jala to Mr Fernandes, the AirAsia CEO had been enjoying such steep discounts over the past two years. In the letter, Mr Idris informed Mr Fernandes that his travel privileges had been withdrawn beginning this month. The reason for the termination, said Mr Idris, was the many salvos Mr Fernandes has been firing at the national carrier which had angered its staff members, according to Malaysiakini. 'The sense of unhappiness among our staff is growing and the pressure from the unions is mounting by the day,' wrote Mr Idris. He told Bernama: 'We have provided the travel privilege out of goodwill since 2006 in response to Tony's request...although AirAsia does not have an interline agreement with Malaysia Airlines.' According to industry practice, only airlines with interlining agreement will consider granting such travel privileges for airline employees. But Mr Fernandes told Bernama that such discounts were actually 'standard practice', similar to those given to him by airlines such as Cathay Pacific, Virgin, Qantas and others. Meanwhile, Mr Fernandes said surging fuel prices will force carriers worldwide to merge or face bankruptcy, reported AFP. 'We are seeing a consolidation in the aviation industry... A lot of people are not going to survive this (fuel hike) including Asian budget carriers,' he told reporters yesterday on the sidelines of the WEF forum. He said AirAsia had been approached by other airlines about tie-ups and operating deals, but did not elaborate. He also insisted it would stick to its plan to expand routes, increase flight frequency and accelerate the delivery of the remainder of its 175 new Airbus A320 aircraft.
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