Malindo vs Airasia

I think if the drop (from RM3.30 to RM2.95) in Airasia's shares are to be taken as a signal due to the launch of Malindo Air, do take a note of the joint venture. Based on track record, the JV party who probably would be bringing more food onto the table i.e. giving a threat to Airasia is the Indonesian party - Lion Air, not NADI. However do check on Lion Air in wikipedia.

I have mentioned before that a probable factor that Airasia is able to have a stronger presence in Indonesia is due to airline safety in Indonesia. The track record of airline safety in Indonesia is poor and probably the government of Indonesia felt that it needs to improve on that. Airasia is a Low Cost Airline but it is an airline with good track record in terms of airline safety. It is a private airline. It does not have the baggage of a "Scoot" partly owned by SIA, which has a low chance of getting into another country's airline ownership. SIA has tried owning a Chinese airline before and the attempt was rejected by the Chinese government - an example.

The more I looked (or searched) at Malindo Air, the more I think this is just a scare to show to Airasia that if Airasia can move some of its operations to Indonesia, the Malaysian government can do the same i.e. attract an Indonesian airline to partner with a local Malaysian here. The problem is though that this Indonesian airline does not have the standing of Airasia.

I am just thinking - is this due to open skies policies or more of a "dare" thing...whatever it is, competition is good. However I felt this is more like - if you attack my base, I will attack your base back kinda thingy?