Malaysia Airlines wishes to clarify the national airline’s stand on the suspension of the Market Development Programme Malaysia (MDP) recently.
MDP is an agreement between 25 airlines operating in Malaysia with the objective to regulate and stabilize market fares, especially during period of high demand.
The programme was implemented effective 01 April 1983 under the auspices of the Board of Airline Representatives (BAR) based in Malaysia. However, the September 11 incident inevitably rendered the MDP untenable and a hindrance to induce travel, which now remains at the lowest confidence level.
Thus the temporary suspension of the MDP on 08 November 2001 was natural, and was unanimously concurred and endorsed by all members.
In the current environment, suspending the MDP will allow each carrier to better align supply with demand, and in turn, align its pricing appropriately. The decision to temporarily suspend the MDP was not done with a view to precipitating a price war. Rather, it will provide each carrier the flexibility to price its product in accordance with market demand.
The suspension will allow all MDP carriers to remain competitive with non-MDP carriers, who had not been constrained by the MDP thus far.
MDP members are - Malaysia Airlines, All Nippon Airways, Air India, Air New Zealand, Air France, Qantas/British Airways, China Airlines, China southern Airlines, Cathay Pacific Airways, Eva Airways, Emirates, Garuda Indonesia, Gulf Air, Japan Airlines, Korean Airlines, KLM- royal Dutch Airlines, Lauda Air, Lufthasnsa German Airlines, Royal Jordanian, Swissair, Saudi Arabian Airlines, Scandinavian Airlines, Royal Brunei, Sri Lanka & Thai Airways International.