More FlyMojo questions

From the Edge:

KUALA LUMPUR: Malaysian skies will soon see the addition of new start-up flymofo’s colours as the full service carrier, which will operate out of the Senai Airport in Johor and the Kota Kinabalu Airport in Sabah, is slated to start operations in October 2015.

But CIMB Research analyst Gan Jian Bo is sounding alarm bells over the likelihood that existing airlines’ yields — already under pressure after consumers were spooked by the spate of aircraft disasters in this region — would be compressed further due to overcapacity when flymojo comes on board.

The new airline, operated by Fly Mojo Sdn Bhd, signed a letter of intent last Tuesday with Canada’s Bombardier Commercial Aircraft to purchase 20 SC100 aircraft for US$1.47 billion (RM5.45 billion), with an option for another 20, which would up the value of the deal to US$2.94 billion. It plans to fly under-served routes.

It's plain to see that everything the government seems to be touching on the private sector is turning toxic on the heels of the 1MDB uproar.

This FlyMojo venture is becoming another scrutinized area of concern, which I first highlighted when the story for the Bombardier plane order broke out.   It turns out that Malaysia doesn't likely need another airline with so many competitors like Malindo and AirAsia out there.  Of course I'd like to see more details regarding to what extent the government is involved in this supposed "venture."

I just find it odd that the government just keeps on doing these kind of no-brain investment ideas.  They are eventually going to scheme themselves out of PutraJaya.  But, what else is new, I suppose this kind of stuff has been going on for years.  I suppose someone has got to get rich, via some "commissions."