Former deputy transport minister Aziz Kaprawi and aviation specialist Roger Teoh said private management had proven to be the more successful approach.
Their comments come after sovereign wealth fund Khazanah Nasional Bhd said it had the option of channelling money into Firefly if Malaysia Airlines were to fail, making it the country’s new national carrier.
Aziz said this was a “turning point for the industry”, giving an opportunity for “the government and the private sector to sit down and chart a new path”.
“A country doesn’t need a government-funded or government-owned carrier any more,” he said. “It could be fully funded by the private sector.”
He said the government could then play a supporting role by enacting policies that stimulate air travel and help airlines save on costs.
“AirAsia’s model is very effective, and it is totally private,” he said, adding that it would be unfair to judge the airline by looking at its current circumstance as every airline was facing problems caused by Covid-19.
Teoh noted that “the most successful and profitable airlines” were usually privatised.
“The main reason for privatisation is it provides incentives for the airline to be more efficient in its operations and minimise wastage,” he said. “Markets work best when participants have a healthy fear of loss.”
However, Teoh also noted the unprecedented “collapse in demand” and said there was a short term need for government aid to minimise job losses and bridge the gap between the present and the recovery in demand.
Suresh Singham, chairman of the Board of Airline Representatives, declined to comment on the specific circumstances facing member airlines, but said there were a number of ways the government could support the industry outside of direct funding.
“Consider the post-pandemic recovery phase, where governments can provide some form of incentive to induce travel further and accelerate recovery,” he said.
He also suggested that wage subsidies, tax reliefs and rebates be offered to airlines to allow them to lower their overall operating costs.