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• W2183851504 abstract "Malaysia Airlines in the month of May 2008 launched its zero-fare campaign for local as well as for Southeast Asia destinations. AirAsia claimed that Malaysia Airlines is crosssubsidising the zero-fare campaign with profits from international routes. In addition, Malaysia Airlines is accused of practicing predatory pricing. There is a simple test for cross subsidy and predatory pricing. The simple test for cross subsidy is the cost approach. If the revenue from a subset of outputs is less than its incremental cost, the subset is the receiver of cross subsidy. The test for predatory pricing is that any price below variable cost is predatory if it can prove that the price constitutes a threat to an efficient firm. In addition, it must be shown that the predator tries to eliminate its competitors. Once the competitors exit the market, it must also be shown that the predator firm raises the price to recoup the losses suffered in price wars. In this price war, there is no evidence of cross subsidy. Similarly, the Malaysia Airlines aggressive pricing is not predatory." @default.
• W2183851504 created "2016-06-24" @default.
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• W2183851504 date "2010-01-01" @default.
• W2183851504 modified "2023-09-23" @default.
• W2183851504 title "Competition in the airline industry: The case of price war between Malaysia Airlines and AirAsia" @default.
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