The Bumpy Ride to Bailouts and Subsidies The recent struggles of AirAsia have cast a spotlight on Malaysia's aviation sector, highlighting a looming crisis that could leave the government facing a choice between bailing out the beleaguered airline or sacrificing some domestic air links.
The issue is not just about AirAsia's woes; it's a symptom of a broader problem affecting the entire industry.
The rise in jet fuel costs has taken its toll on airlines worldwide, but Malaysia's situation is particularly precarious due to the lack of commercial incentives for rival carriers to take over unprofitable routes.