Malaysia Airlines Explores New Joint Business Agreements and Considers Rekindling Cathay Pacific Partnership

Malaysia Airlines, the national flag carrier of Malaysia, is actively engaging in discussions with three airlines to establish joint business agreements (JBAs), signaling a strategic move to expand its global network and partnerships. This initiative mirrors the airline’s ongoing efforts to forge stronger alliances within the aviation industry, much like its existing agreement with Japan Airlines (JAL), a fellow member of the Oneworld alliance.

The airline had previously aimed to develop a joint business with Cathay Pacific, focusing on creating a metal-neutral basis for flights between Hong Kong and Malaysia. However, this plan was put on hold last summer due to an investigation by Hong Kong’s Competition Commission into the potential competition law implications of such a partnership.

Captain Izham Ismail, Managing Director of Malaysia Airlines and Malaysia Aviation Group (MAG), expressed optimism about the future of these partnerships in a recent episode of the Window Seat podcast, recorded at Routes Asia 2024. Izham highlighted the critical role that joint businesses play in the airline’s strategic development, hinting at the possibility of revisiting the partnership with Cathay Pacific within the next 12 to 24 months.

The partnership between Malaysia Airlines and JAL, initiated in July 2020, set a precedent for the kind of strategic alliances Malaysia Airlines aims to cultivate. This collaboration has enabled codeshare flights between Malaysia and Japan and on domestic flights within these countries, demonstrating the benefits of such agreements in enhancing airline networks and passenger options.

Despite the setback with the proposed Cathay Pacific agreement, due to the scrutiny from Hong Kong’s Competition Commission, both airlines had cooperated fully with the investigation. Eventually, the decision was made to abandon the partnership plans, and the investigation was concluded in September of the same year.

As Malaysia Airlines continues to engage in “deep conversations” with potential partners, whose names remain undisclosed, the focus is on designing agreements that will support the expansion of its international network. This strategic direction underscores Malaysia Airlines’ commitment to strengthening its global footprint and offering more connectivity and travel options to its passengers.