Malaysia Airlines is engaged in discussions with three carriers to establish joint business agreements (JBAs), with a potential resurgence of plans for a partnership with Cathay Pacific on the horizon.
Malaysia Airlines
Captain Izham Ismail, Managing Director of Malaysia Airlines and Malaysia Aviation Group (MAG), revealed the airline’s aspirations to develop multiple JBAs akin to its existing collaboration with Japan Airlines (JAL) within the Oneworld alliance.
Initially, Malaysia Airlines had sought to launch a joint business with Cathay Pacific, operating on a metal-neutral basis for flights connecting Hong Kong and Malaysia. However, these plans were shelved last year following an investigation by Hong Kong’s Competition Commission.
In a recent interview on the Window Seat podcast during Routes Asia 2024, Izham expressed ongoing discussions with three other carriers regarding joint business ventures. He emphasized the importance of JBAs as a strategic pillar for the airline’s future growth.
While remaining tight-lipped about the identity of the carriers involved, Izham hinted at a potentially aggressive approach to modeling joint businesses in the future. He also hinted at the possibility of revisiting the partnership with Cathay Pacific within the next 12 to 24 months.
The partnership between Malaysia Airlines and Japan Airlines commenced in July 2020, facilitating codeshares between Malaysia and Japan, including domestic flights. However, the collaboration with Cathay Pacific, announced in early 2022, faced regulatory scrutiny in Hong Kong.
Following an investigation by Hong Kong’s competition regulator, concerns were raised about potential violations of competition laws. Consequently, both airlines opted to withdraw their proposals, with the Competition Commission closing its inquiry in September.
Despite the setback with Cathay Pacific, Malaysia Airlines remains committed to expanding its international network through strategic partnerships. The ongoing discussions with multiple carriers underscore the airline’s determination to strengthen its position in the global market.
As Malaysia Airlines explores opportunities for collaboration, the revival of plans with Cathay Pacific presents a potential avenue for enhancing connectivity between Malaysia and key international destinations. With JBAs at the forefront of its business strategy, Malaysia Airlines aims to navigate the evolving aviation landscape with resilience and adaptability.