AirAsia & Malindo - Now Everyone Can "Buy"?

Currently AirAsia share price shrink dramatically below RM 3 because of the setting up of a new low cost carrier, the Malindo Airways, in Malaysia. I'm not going to talk about the fundamentals of AirAsia, but, the market reaction on the news.

I think the market is over reacted on the news. Firstly, there is nothing doing wrong with AirAsia. AirAsia is still doing business well as usual & they are still the best choice for those who wants to travel around. Maybe you say Malindo Airways will bring in fierce competition with AirAsia, I say yes, but it would only happen after 9 months from now. Also, I don't think Fernandes would do nothing, just wait & see the Malindo to compete with AirAsia.

Competition always bring benefit for consumers. Anyway, Malindo still has a long journey to pass through if they want to fight with AirAsia. I will see AirAsia share price remains volatile in short term & stand back to RM3 level soon.

Note: The above content is just a blogging activity that purely share my investment thoughts & ideas and should not be used as recommendation to buy or sell any securities. I may already have position in the above securities. Any action that you take from the opinions or information of this blog is solely on your own responsibility. Please consult your investment advisor before you make any investment decision.