Malaysia

AirAsia Bhd will discontinue 8 international flight routes, including: Ipoh-Singapore, Kota Kinabalu-Manado, Kota Kinabalu-Kunming, Kota Kinabalu-Ningbo, Kota Kinabalu-Wuhan, Kuala Lumpur-Port Blair and Penang-Hong Kong. It will also reduce frequencies on its Kota Kinabalu-Hong Kong, Kuala Lumpur-Kochi and Kuala Lumpur-Phuket routes. It is now operating 75 international routes instead of 83 from Malaysia under AK. The airline said the changes were part of a review and operation alignment

Batik Air has said that it fully supports the transformation of Subang Airport, and called on the airline regulators to speed up additional flight slots at the airport, which it notes would allow them to enhance connectivity

AirAsia X will launch a direct flight route between Kuala Lumpur-Karachi from 30 May with 4 flights per week

Perak Tourism EXCO said the government wasn’t consulted by AirAsia on the termination of its Ipoh-Singapore route. He asked AirAsia to consider resuming operations in this route

Penang Tourism EXCO said Penang will welcome another direct flight service from China which will benefit Penang during China’s May Day Golden Week. He said the airline is waiting for an approval from the Civil Aviation Authority of Malaysia (CAAM). He said Penang currently has direct flights to 7 Chinese cities such as Guangzhou, Xiamen, Shanghai, Hong Kong, Shenzhen, Chongqing, and Xi’an. Since Jan 2025, China surpassed Singapore as the second source market for Penang, after Indonesia. In Feb 2025, Chinese tourist arrivals reached 33,151, +118.03% YoY. He said Myanmar Airways International will launch a direct flight from Yangon, Myanmar, to Penang on 10 Apr. He said AirAsia decided to suspend 8 routes, including the Penang-Hong Kong route, from 12 Apr. He said there are 22 flights per week for the Hong Kong-Penang route, 8 by Cathay Pacific, 7 by AirAsia, and 7 by Hong Kong Express Airways

Penang State Infrastructure and Transport EXCO has stated that Penang International Airport’s expansion and upgrading works are progressing well across the project’s 3 Work Packages (WP). WP1 worth RM107.9 million was awarded to Gagasan Maya Sdn Bhd in Sep 2024, has achieved 31% completion and will be completed by Nov 2025. This package involves upgrade and construction works including the Ancillary Building, Air Traffic Control (ATC) Tower, Civil Aviation Authority of Malaysia (CAAM) office, and AVSEC Control Post. He said this project includes a Remote Digital Virtual Tower (RDVT), first in Southeast Asia to implement this technology. WP2 will begin in mid-Apr 2025, and the project with a value of RM254.6 million, was awarded to Acre Works Sdn Bhd. Tenders for WP3 for the construction of new terminal and renovation of the existing terminal will be called in Apr 2025. The project is expected to be operational by 2027, and completed by 2028

Capital A CEO stated that AirAsia is moving out of Subang Airport due to economic viability. He said the airport should capitalise on private jets and high-paying travellers. He expressed confidence in the Gateway Development Alliance Sdn Bhd (GDA), who took Malaysia Airports Holdings Bhd private, to support the company’s long-term plan, helping AirAsia to build its Kuala Lumpur International Airport 2 hub. He said AirAsia will focus on operating all its 224 aircraft from KLIA2

Capital A CEO said the company is expected to exit PN17 status by May. The High Court has fixed 21 Mar to hear plans on the group’s capital reduction and distribution exercise. He refused to comment on the news report of the Public Investment Fund (PIF), the sovereign fund of Saudi Arabia, subscribing to AirAsia’s RM1 billion placement

Capital A CEO said the private placement to raise RM1 billion is completed

The Civil Aviation Authority of Malaysia (CAAM) recorded 648 bird strikes on aircraft in Malaysia in 2024. CAAM said this remains within safety levels despite an increase from 2023. CAAM CEO said airports near coasts, wetlands, or agricultural areas are more vulnerable to bird strikes. He said the Alor Setar airport, which is surrounded by paddy fields, has a higher risk of bird strikes. Kuala Lumpur International Airport, which is close to the Paya Indah Wetlands, recorded high bird encounters during Mar-May and Sep-Nov. Other high-risk airports are Langkawi Airport, Kuala Terengganu Airport, and Kota Kinabalu Airport

The Tourism Minister said they have engaged with Nowa Itaka, a Central Europe-based travel company, and Lufthansa Group to develop tourism packages to attract European tourists, especially outside traditional peak seasons. Nowa Itaka, which covers Czech Republic, Hungary, and Latvia, launched a charter flight package connecting Warsaw, Poland to Langkawi in Oct 2024. The company plans to introduce a new charter flight between Warsaw-Langkawi and extend the service to Sarawak and Sabah from Oct 2025-Mar 2026. He said European tourists account for 25%-30% of Malaysia’s tourism market. He said Germany is a top choice for Malaysian students for higher education

The Civil Aviation Authority of Malaysia issued a directive to passengers to avoid storing power banks in their carry-on baggage in overhead bins following a cabin fire in a Korean airline which forced 176 passengers and crew to be evacuated before it took off

Bursa Malaysia Securities has approved Capital A’s proposed regularisation plan

AirAsia will stop its flight service from Sultan Abdul Aziz Shah Airport (Subang Airport) from 7 Apr to Kota Kinabalu and Kuching. The airline said that it will consolidate its operations at KLIA 2 to improve efficiency and improve the overall guest experience. The airline said Subang Airport is convenient for city-bound travellers, but it will take time for the redevelopment to support future growth

11 media organisations from Penang visited Chennai, India, for a fam trip to promote tourism between Penang and India

Menzies Aviation will focus on long-term growth in Malaysia through improving ground handling services and infrastructure at Kuala Lumpur International Airport (KLIA). Vietjet is looking to potentially collaborate with Menzies Aviation for ground-handling service in both its Malaysian and international operations

Batik Air introduced fixed one-way fares capped at RM319 to Sarawak and RM379 for Sabah. Batik Air will increase flight frequencies to 140 additional services to Kota Bharu, Alor Setar, Penang, Kota Kinabalu, Kuching, Sibu, Sandakan, and Tawau. Batik Air is adding over 22,000 additional seats during the peak travel period

Public Investment Fund (PIF) of Saudi Arabia is reportedly to invest $100 million USD in AirAsia. AirAsia is looking to raise RM1 billion in funds. The airline is in talks with investors from Singapore and Japan

Malaysia recorded 9.2 million passengers in Jan 2025, 106.1% of pre-pandemic levels. The Malaysian Aviation Commission (MAVCOM) said it grew +3.8% MoM and +28.2% YoY. The increase is attributed to strong travel demand during Chinese New Year and the school holidays. Domestic air passenger traffic reached 4.8 million, -1.2% MoM and +24.4% YoY. MAVCOM reported that the non-ASEAN market recorded 2.6 million passengers, +7.1% MoM and +34.9% YoY while ASEAN passenger traffic recorded 2.3 million, -4.8% MoM and +14.2% YoY. In Jan, international air passenger traffic accounted for 52.3% of total traffic, and domestic made up 47.7%. Malaysia’s airports recorded strong YoY growth in Jan 2025: - Kuala Lumpur International Airport recorded +25.6% YoY - Langkawi International Airport, +27.5% YoY - Penang International Airport, +27.9% YoY - Kota Kinabalu International Airport, +34.5% YoY - Senai International Airport, +41.8% YoY - Kuching International Airport, +23% YoY

AirAsia will acquire 14 new aircraft in 2025, 4 directly from Airbus and 10 from lessors. International Air Transport Association (IATA) said Asia Pacific passengers are expected to grow by 7.9% in 2025. AirAsia targets 70 million passengers for full year 2025, +11% YoY

Sarawak Transport Minister said the existing 300 MASwings staff will be absorbed into AirBorneo as per the agreement signed with Malaysia Aviation Group (MAG). He said a Cabin Crew Training Course will be offered at Centexs Lundu to support the Aerospace Program implemented at the centre and further improve fields related to aviation

Capital A reported high sustainability scores. Capital A’s FTSE ESG ratings increased to 3.5/5 vs 3.2 in 2023. Their S&P Global Corporate Sustainability Assessment (CSA) score increased to 47%. Capital A Chief Sustainability Officer said Capital A will strengthen its sustainability strategy and deliver outcomes based on the regulatory developments, especially on the environmental performance

Asia Aviation Public Company Limited (AAV), which operated Thai AirAsia, received a 3.7 ESG score in the Stock Exchange of Thailand (SET)

Capital A saw an annual loss in 2024 of RM475.1 million, from 2023’s profit of RM255.3 million. It attributed the loss to a RM1.4 billion in one-off FOREX losses in its aviation business. The airline expects it 19 aircraft in storage to be active by Q2 205, and that it will benefit from increased travel demand throughout the year as it focuses on profitable air routes

Tourism Malaysia welcomed China Southern Airlines’ first flight connecting Urumqi with Kuala Lumpur. The flight makes a stopover in Guangzhou. The airline plans to expand the service to daily flights from Apr 2025

AirAsia X published its unaudited financial results for Q4 2024 and full-year 2024. For Q4 2024, the airline reported: RM872.3 million in revenue, +7% YoY 82% Passenger Load Factor Available Seat per Kilometre (ASK) capacity increased to 5.794 million, +21% YoY EBITDA increased to RM119.6 million, +75% YoY Net operating profit of RM54.3 million and net profit of RM22.6 million The airline carried 1.1 million passengers, +20% YoY 1.3 million seats, +20% YoY Ancillary revenue per passenger increased to RM268 per passenger, +9% YoY and total ancillary revenue recorded RM286.6 million, +30% YoY Cost per Available Seat Kilometre of 12.99 sen, -17% YoY in Ringgit terms due to -29% in average jet fuel price leading to a -21% in fuel costs despite the increase in capacity For the full year, the airline recorded: Revenue of RM3.2 billion, +28% YoY Net profit of RM229.1 million vs RM336.5 million in 2023 4 million passengers, +41% YoY and 83% PLF

Capital A reported its unaudited financial results for Q4 2024 and full year 2024 financial results. Capital A’s non-aviation companies generated over RM880 million in pre-elimination revenue in Q4 2024, +39% YoY. Teleport accounted for 40% of revenue, followed by ADE 23% and AirAsia MOVE 19%. The EBITDA was RM142 million for a 16% margin and resulted in RM126.7 million Profit After Tax (PAT). In 2024, the non-aviation companies recorded RM3 billion revenue, accounting for 14% of Group revenue and RM147 million PAT. ADE reported RM201 million, +20% YoY and RM24.8 million PAT (12% margin). ADE recorded RM727 million revenue in 2024, +27% YoY AirAsia MOVE recorded RM166 million in revenue in Q4 2024, +29% QoQ. Transactions increased by 10.4% YoY with a 16.2% increase in MAUs. AirAsia Flights recorded +11% QoQ, FlyBeyond +37% YoY, Hotels +130% YoY, and Rides +16% YoY Teleport recorded RM352 million revenue in Q4 2024, +58% YoY driven by e-Commerce growth with +44% in parcel volumes and +33% in cargo volume Its aviation sector recorded RM4.8 billion in revenue, +8% YoY and RM1.2 billion EBITDA AirAsia recorded its lowest carbon intensity measures at 64.4 gCO2/ASK and 73.1 gCO2/RPK Total fleet recorded was 224 aircraft, with 187 operational aircraft In Q4 2024, the airline recorded 16 million passengers with an 88% load factor. In 2024, the airline carried 63 million passengers, +28% YoY

Malaysia Aviation Group (MAG) will operate more than 200 additional flights during the Ramadan and Hari Raya travel period. MAG will increase flight frequency and upgrade aircraft on Alor Setar, Kota Bharu, Kuala Terengganu, Miri, Sibu, Kuching, Tawau, Sandakan, and Kota Kinabalu. The airline will offer fixed one-way fares from RM389 to Sabah and RM319 to Sarawak for red-eye flights. Firefly will offer a special campaign from 7-20 Mar to offer fares from RM69 for 7 Mar-3 Nov travel period

Malaysia Aviation Group (MAG) signed an MoU with FatHopes Energy Sdn Bhd (FHE) to explore used cooking oil (UCO) as potential feedstock for Sustainable Aviation Fuel (SAF)

The Transport Minister said AirAsia will offer 16,000 seats from 28 Mar-5 Apr with its 90 late-night flights for Hari Raya. AirAsia will offer discounted flights from Peninsular Malaysia to Sarawak, Sabah, and Labuan during the Hari Raya season. AirAsia will offer one way airfares from; - RM328 for flights between Kuala Lumpur and Kuching, Sibu, Bintulu, or Miri; Johor Bharu to Kuching and Sibu - RM388 for flights between Kuala Lumpur and Kota Kinabalu, Sandakan, or Tawau; Johor Bahru and Kota Kinabalu

The Transport Ministry will continue to offer RM499 ceiling fare subsidy for one-way flight tickets from Peninsular Malaysia to Sabah, Sarawak, and Labuan for the Aidilfitri celebration

The Civil Aviation Authority of Malaysia (CAAM) launched the first-ever e-licensing platform for aviation professionals in Southeast Asia called e-CAAM Licensing Professional Services (eCLIPSE). The Transport Minister said this will cut processing time for licensing applications, which take up to 2 weeks right now. The Transport Ministry aims to implement a similar e-licensing platform for commercial and recreational drones

AirAsia Rewards introduced a plug-and-play loyalty solution for businesses to streamline and improve their rewards program

AirAsia X’s takeover of Capital A’s aviation business worth RM6.8 billion is expected to receive approval by the end of Feb. Capital A said they are waiting for a court date to confirm the proposed capital reduction linked to the takeover

Malaysia Airlines will fly its new Airbus A330neo to Melbourne from 18 Mar. The airline will use the aircraft for its KL-Auckland route 4 times a week from 13 Mar and will schedule the KL-Denpasar route with 3 flights per week from 16 Mar

Pahang Tourism EXCO said Scoot Air is offering 2 flights per day between Changi Airport and Kuantan, an increase from 3 flights per week it offered when the service was launched in Mar 2023. She said they are in talks with Citilink to establish direct flights to Jakarta. She also expressed hope to revive Penang-Kuantan direct flight which was previously operated by Firefly

Malaysia Aviation Group (MAG) and the Singapore Tourism Board (STB) renewed their strategic partnership to increase travel between Malaysia to Singapore. MAG and STB will launch destination marketing campaigns featuring Malaysia Airlines and Firefly crew

Capital A Berhad said it will publish internal business targets from 26 Feb with quarterly results to show its financial outlook to investors

AirAsia X launched its latest campaign, “AirAsia Says G’day” to promote Perth, Sydney, and Melbourne. In 2024, AirAsia X carried 600,000 passengers to Australia from around the world

The Transport Ministry said Malaysia Airports Holdings Bhd’s (MAHB) sale of shares will not affect security based on the cooperation between the Civil Aviation Authority of Malaysia (CAAM), MAHB, and the Police. The Ministry said government-linked investment companies (GLICs) such as the Employees Provident Fund (EPF) and UEM Group Bhd will collectively hold 70% of the shares

The Prime Minister is still discussing the potential revival of a Malaysia-Bahrain direct flight. He said the matter was raised during his courtesy call to Bahrain’s Prime Minister

Batik Air has signed an MoU with the Malaysia Healthcare Travel Council (MHTC) to leverage its network to assist international patients seeking medical treatments in Malaysia

Malaysia Airports Holdings Bhd (MAHB) will be delisted from Bursa Malaysia on 25 Feb, and trading of its shares is now suspended, after Gateway Development Alliance Sdn Bhd obtained sufficient shares to delist MAHB and take it private on 28 Jan

The Transportation Minister has said that there are no plans to build a Kuala Lumpur International Airport Terminal 3 until T2 has reached its maximum capacity of 45 million passengers per annum (mppa). The long term plan for T1 is to increase its capacity to 59 mppa and T2 to 67 mppa

The Transport Minister reported: Malaysia Airlines saw a 130% increase in its cancelled flights in 2024, with 8,319 in 2023 vs 3,612 in 2024. Its delayed flights saw a decrease of 3% to 7,330. It received 9% more complaints, 410 AirAsia saw a 23% decrease in cancelled flights to 30,840 and a 7% decrease in delayed flights to 18,825. It saw a 43% drop in complaints, to 569 The average cost of a domestic flight ticket in 2024 was RM227 and RM220 in 2023, whilst domestic flight capacity increased by 1.3% YoY in 2024 The average cost of an ASEAN flight ticket decreased by 0.4% YoY to RM358, whilst international air capacity increased by 22.3% YoY

The Malaysian Aviation Commission (MAVCOM) said that airline passengers have the option to get a refund of their fuel surcharge, taxes, fees, and charges such as the departure levy, passenger service charges (PSC) and carbon fee if their flight is delayed by 5 hours or more and they choose not to travel. MAVCOM has also extended the time limit for complaints to 2 years, from 1 year previously

Malaysia Aviation Group reported that its 18% capacity cuts in Q4 2024 wiped out its financial gains from the first 3 quarters of the year, with higher-than-expected costs incurred from increased repair and maintenance expenses, aircraft engine procurement and customer compensation for cancelled or delayed flights. To offset manpower issues, it has set a target of producing 100 cadet pilots annually. The airline expects to return to full capacity in Q4 2025