SINGAPORE (May 10): Given the challenging business environment and the downcycle in the aviation sector, Malaysia Airlines Bhd and Singapore Airlines Ltd should be merged, according to Maybank Kim Eng Holdings Ltd regional aviation analyst Mohshin Aziz.
“(The solution is) very simple — merge. Forget the national identity crisis, and they can be merged. It will be able to remove a lot of costs, and make themselves more efficient,” he said in a Q&A session at Invest Asia 2019 here today.
Mohshin, who is also associate director of Maybank Kim Eng Securities, pointed out that Malaysia-Singapore Airlines was once the flag carrier of Malaysia and Singapore, before it broke up in 1972.
“If they were to merge, there will be a lot of improvements in terms of scheduling. Besides, relocation of assets can also be optimised,” he says.
“If the full-service carriers can get away from the mentality that 'I am representing my country', it will bring very good benefits for their businesses. That’s my firm view,” Mohshin stressed.
Maybank Kim Eng clarified that his views did not represent its position and house view.