Quantity of aircraft may not be important. If too many the unused/park only it will cost company extra cost eg. parking fee, interest loan on aircraft and depreciation value. And company will not make profit. AA every month are expanding by adding about 2 aircraft/month. If they dont need it them why buy? It show that passenger are increase every month.
1. Cheaper labour? I dont think so , if the pilot pay/air crew pay lower they will jump ship to other airline. Please compare 1st. AA can turn Indon local domectic bankrupt airline into profit. Where cheaper pilot/crew also cannot survice in Indon.
2. Cheaper parking fee/landing?>> Parking fee are standard price for all airline base on aircraft size. AA using main termainal not like Tiger using Budget terminal in Singapore. They still able to get profit from the route. Maintenainve item are fix schedule due to rule and regulation after certain flight hour each aircraft must be check and change eg. oil as in the schedule. AA plane also do maintenance in Singapore please check.
3. Malaysia number of hub?>> Now AA have hub in Thai/Indon/Philipine/Veit and coming Japan. How do you explain? If AA only counting on Malaysia route it will die off no room to expand.
Next AA move I think they will want to find a partner in Middle east to as a pit stop to Europe.
So my conclusion TigerAirway suck. Even grounded or ban to fly in Australia.
Firstly let me straighten your arguments as they are out of whack.
In which part of my response did I say AA is not doing well, that they need to expand and etc. Did I not agree, I quote, "I am not denying how successful they are but they had more advantages than Singapore." Why are you pointing out they are expanding? Success = expansion, right?
1. Cheaper labour does not mean pilot. Air Stewards and stewardesses can jump ship meh? Don't talk rubbish here. Budget airline crews are not similar to the crews of major carriers. They are paid far less and employment terms are not the same. Anyway I think you don't understand what is meant by cheaper labout. Let me give examples. The drivers, the counter staff, the office operations, the whole gig-ma-gig, in other words, business operations are cheaper in Malaysia, which also include vehicles, offices and etc. Please do not argue about their overseas business operations, that is a separate matter.
Another thing, talking about AA turning a bankrupt Indo airline around, why that Indo airline fail, you are getting off point. Try to focus on what was argued and not bring in something not related. If you want to go in that direction, I can point out many instances of successes and failures of Singapore companies. It does not make your and my argument stronger.
3. No one spoke about hubs ok? Neither you or myself did mentioned it until you came to the conclusion that I am only counting on Malaysia as their hub. I said routes, not hub. Did I also said they depended on Malaysia route to survive? Let me point out again if it did not get through the first time.
- Malaysia has many airports, namely Sabah, Sarawak, Penang, Johor and KLIA (these are the main ones besides others like Langkawi and Trengganu). Singapore has one, Changi Airport. Which country has a better bargaining power to negotiate for more flights and routes and a better air agreement? Singapore? Do you agree?
Before an airline can expand, it needs to set up air agreements with those countries they intend to operate, this is common sense. You named a few countries so let me give an example of Philippines, which I am familiar with. Philippines has a few airports and if Singapore wants to fly to Mindanau, would the Philippines Govt allow that? Do we have enough passengers to want to go to Mindanau? You know that Island are mostly Muslims?
Ok I have tried to do some explaining, why don't you write down why they can operate a hub in those countries, I am not interested in finding out, but it is definitely a plus for AA as they have to in order to expand their services. Singapore is unable to for many reasons, but you think why they cannot because as I mentioned earlier, Singapore is not Malaysia and Malaysia is not Singapore. It is hard to compare. It is easier to compare between MAS and SIA ever since they separated form the MSA days.
2. Landing fees in Changi Airport and parking in Singapore is higher than in Malaysia, period. AA can park their aircraft in Subang, Sarawak, Trengganu and not necessarily in KLIA.. Not all maintenance are done in Singapore, please check. Line maintenance are also cheaper in Malaysia, please check that too. Fuel in Malaysia is also cheaper, no need to check.
