Malaysia Airlines' traditional monopoly on domestic and international air services is coming under increasing threat from four other carriers.
The national flag's much-vaunted potential competitor, Air Asia, is set to join forces with Malaysian regional startup Saeaga Airlines in a joint venture with services to major regional destinations.
Local operators - Mofaz Air, Berjaya Air and Asia Pacific Airlines - have been cleared to provide scheduled domestic services during the busy Chinese New Year and Hari Raya festive season.
Furthermore, Asia Pacific, which currently operates charter flights to neighbouring countries, will begin regular domestic flights from mid-April. It will launch on nine domestic routes, though they are all supplementary sectors which won't put it in direct competition with MAS. The carrier will benefit from a management support package provided by Air New Zealand.
But Saeaga, set up to operate within the East Asia Growth Area, has far wider ambitions. Talks are taking place with Air Asia, which already has landing rights in Hong Kong, Taiwan and Japan, to operate beyond this region. Air Asia's launch was delayed last year to allow MAS to recover from a business downturn without the complication of a new local competitor.
Saeaga chairman Tan Sri Ting Pek Khiing says: 'We will join [Air Asia] and go international. This matter will be finalised very soon.' Saeaga will fly to 13 destinations within Malaysia using Dash-8s and Canadair RJs. Services to Indonesia, the Philippines and Brunei follow later. Ting says the deal with Asia Air will require larger aircraft.
Tom Ballantyne
Source: Airline Business
