I think Temasick now owns more of Airasia because it was part of the deal they made with Thaksin. Could be why Airasia is still operating those Bkk-Spore flights.
Let me tell you a story.
Last time along this street (let's called it Sammie Leong Street), there are two kopitiams there. It happens that in these 2 kopitiams, there is a stall catered just for chicken rice. So happens that one day the 2nd kopitiam, chicken rice stall owner decide to give up the business. The new stall owner is the wife of the chicken rice stall boss from the 1st kopitiam. But he did not reveal.
So the wife ask the husband why he decided to takeover the chicken rice stall on the same street but different kopitiam. Her husband told her, the reason to do that is to monopolize the chicken rice business on the same street. Regardless of which kopitiam, people who wish to eat chicken rice, go to either stall A or stall B, he will earn their money.
And to make it even better, his market strategy for his new stall will be to increase the price by 50cents compared to his current stall.
His wife was puzzled by the 2nd reason and ask him why.
If the price was pegged at the same, people would not feel anything. Human behaviour love to compare. When standards are equal, they start to compare with pricing. The "cheaper" one will get the thumbs up even when the taste is the same. But its actually not cheaper after all.
But what about the stall with higher price? Wouldn't it attract less customers? Actual fact, it will only attract people who pass by and don't stay there or people who wish to just eat it for convenience sake and not walk a few more steps. It will add 50cents more a plate of profit.
For those who wants to save "that 50cents" will walk to stall A and eat and increase the business.If someone else comes in and takeover the stall, it would be another competitor.
Which other country can afford their kind
