Malaysia

The Malaysian Prime Minister invited Russian airlines to resume direct flights to Malaysia

The Malaysian Tourism Minister had discussions with Scoot to boost connectivity between Malaysia-Singapore, a potential Singapore-Bintulu route, as well as the opportunity that Tawau presents

Western Australia’s “Walking On A Dream” destination brand campaign will be launched in Malaysia together with AirAsia. The campaign will be launched following AirAsia resuming its Kuala Lumpur-Perth flight from 23 Jun. Digital ads will be displayed at Pavilion, Menara and KS Law Kuala Lumpur buildings. In 2024, 61,000 Malaysians visited Western Australia, contributing $136 million AUD to the economy

The Council of the International Civil Aviation Organisation (ICAO) ruled that Russia was responsible for the crash of Malaysia Airlines aircraft, which killed 298 passengers, including 196 Dutch and 38 Australian citizens. The Dutch and Australian governments said that ICAO will consider reparations for this incident

Batik Air will launch a direct flight between Kuala Lumpur-Dili from 6 Jun, making it the first Malaysian carrier to serve Timor-Leste. The airline will offer 2 flights per week

The Investment, Trade and Industry Ministry (MITI) will engage with aviation companies to improve Malaysia’s aerospace capabilities, according to MITI’s Deputy Secretary-General. He officiated KarbonMRO’s (KMRO) new aircraft maintenance facility, a joint venture by Dviation Group and Japan’s Marubeni Corporation. KMRO currently operates at 10% capacity and will increase to 30 aircraft by the end of 2025. He said that MITI is in talks with the US to seek exemptions for the aerospace sector

Amritsar, India-bound passengers were stranded at Kuala Lumpur International Airport (KLIA) following the conflict between India and Pakistan. Amritsar Airport was closed by the authorities from 7-9 May. Malaysian carriers have rerouted flights and suspended flights after Pakistan closed its airspace. Malaysia Airlines diverted its London and Paris flights to a refuelling stop in Doha, Qatar, before continuing to their destinations Batik Air cancelled flights on 7-8 May to Lahore, Pakistan and Amritsar AirAsia suspended flights to Amritsar from 7-9 May

Capital A announced that its shareholders and RCUIDS holders have unanimously approved the Proposed Regularisation Plan, which includes capital reduction of up to RM6 billion at the company’s EGM. This is an important step for the company to exit PN17 status and reinforce its long-term financial resilience. Capital A will ask the High Court’s confirmation of the capital reduction after the Proposed Disposal’s entitlement date is announced

The Tourism Minister is engaging with airlines to increase direct flights between Malaysia and Saudi Arabia. He said that Saudia Airlines and Malaysia Airlines’ capacity has been allocated for hajj and umrah pilgrims, while there is a significant decline in corporate travel groups. The Minister is engaging with Malaysia Airlines, AirAsia, and Batik Air to increase direct flights for the leisure market. The Minister met with the CEO of Al Ahram Travel and Tourism Company, who expressed hope to establish deep business collaboration with Malaysia, including establishing direct flights from Saudi Arabia to Kuala Lumpur and potentially connecting Singapore or Australia. The Tourism Ministry will encourage local hospitality players to collaborate with Saudi agents to promote medical tourism. Malaysia reached an agreement with Panda Supermarket to promote Malaysia in Saudi Arabia

Enrich has introduced a new feature for EnrichMoney called “Pay with Points”, which will allow members to redeem their points via DuitNow QR at participating merchants, for the first of its kind launched in Malaysia. Members who use this function will receive up to RM5 off their transactions until 31 May as part of the launch celebration

Sultan Abdul Halim Airport (LTSAH) in Alor Setar, Kedah, closed its runway at 5.30pm following an incident involving an Air Force aircraft on 6 May. The runway was reopened at 8.00pm. The incident disrupted 4 flights, and the LTSAH Manager said they rearranged the schedule for all affected flights, including flights involving Haj pilgrims

Capital A announced its plan to expand into the Saudi Arabian market as part of the group’s Middle East growth strategy. AirAsia will introduce new routes to Riyadh and Dammam, and will increase its Jeddah-Kuala Lumpur flight routes. The group is looking into new connections to Riyadh from Bangkok and Jakarta. Capital A will introduce its entire business ecosystem, such as Teleport (logistics arm), Asia Digital Engineering, and AirAsia MOVE. Capital A CEO, CEO of AirAsia Thailand (TAX), and Saudi Arabia’s Ministry of Investment, General Authority of Civil Aviation (GACA), and Ministry of Transport, held a meeting to explore partnerships in airline connectivity, Red Sea tourism development, and collaborations in logistics and aircraft engineering services

The Sarawak Government and Airbus will establish a joint task force to develop an aerospace industry roadmap for Sarawak. Sarawak Premier said that the joint task force is one of 6 key areas of strategic cooperation agreed by Sarawak and Airbus during a visit to the Airbus Campus in Toulouse, France. The collaboration will include developing digital journey systems and flight services by integrating all travel arrangements into a one digital package. Airbus will develop aerospace-related training programs and curriculum. Airbus will also support Sarawak in exploring the potential for manufacturing composite materials and gas-based synthetic leather, avionics and instrumentation technologies based on AI

Malaysia Airlines signed 3 MoUs with APG (Air Promotion Group), StudentUniverse, and ATPI (Advanced Travel Partners International) to expand its market reach and to improve its global distribution. The MoU signings are part of Malaysia Airlines’ effort to improve its presence in offline markets, target student travel segments, and expand into the marine and energy industries. Malaysia Airlines will join the APG Platform, a New Distribution Capability portal, which will help to expand its reach to travel agents worldwide. The airline appointed ATPI as its preferred marine travel partner from May 2025-Apr 2026 and will work to improve access to key marine hubs and routes as part of its strategy to grow in niche travel markets

Capital A is looking to raise $200 million USD from a Hong Kong listing as the company is looking to attract Chinese investors and accelerate its growth. Capital A's CEO said that the company is undervalued due to Malaysia’s stock exchange classifying Capital A as a “financially distressed” company since 2022. He added that ASEAN is attractive to investors from North Asia. Capital A is considering proposals from undisclosed investment banks. Capital A said AirAsia doesn’t hedge fuel and it has benefited from 20% decline in oil price in past month and the strengthening of emerging market currencies against the USD

Malaysia Aviation Group’s Chief Commercial Officer of Airlines said that they are focusing on offering compelling products to support long-term growth, including their fleet modernisation plan, improving passenger comfort, and overall improved travel experience. He added that they are committed to ensuring network accessibility by offering flexible fare options and improving customer engagement through the Enrich loyalty program. Malaysia Airlines is working closely with Tourism Malaysia to support Visit Malaysia 2026 with the signing of an MoU with the Tourism Ministry to carry out promotional activities. The airline is working with the Sarawak Tourism Board to support events such as the Rainforest World Music Festival and the Langkawi Development Authority (LADA) to continue to position Langkawi as a top-tier domestic destination. Malaysia Airlines recorded +6.1% YoY in domestic airport arrivals. Malaysia Airlines recorded a passenger load factor increase from Kuala Lumpur to Bintulu (+11% YoY); Langkawi Tawau, and Sandakan (+9% YoY); Miri and Penang (+8% YoY); Alor Setar, Kota Bharu, Kuantan, and Sibu (+7% YoY); Kuching, Kuala Terengganu and Labuan (+6% YoY); and Johor Bahru and Kota Kinabalu (+4% YoY) Firefly recorded +6% YoY in domestic passenger load factors in 2024, driven by Subang-Penang and Subang-Johor Bahru routes. The top domestic routes which recorded an increase in available seat kilometres (ASK) are Kuala Lumpur to Kota Bharu (+19% YoY) and Johor Bahru (+10% YoY) by Malaysia Airlines; and from Kota Kinabalu to Tawau (+77% YoY) and from Kuching to Tawau (+33% YoY) by Firefly. Malaysia Airlines increased its marketing efforts to promote domestic tourism through the “Bonus Side Trip” program involving Alor Setar, Langkawi, Johor Bahru, Kota Bharu, Kuala Terengganu, Kuantan and Penang

Malaysia Aviation Group (MAG) is planning to increase Malaysia Airlines’ frequencies to China’s core routes and launch direct services to 2nd-tier cities over the next 3 years. MAG’s Managing Director said their Destination 2030 fleet plan will support this expansion. MAG acquired 18 Boeing 737-8 aircraft, in addition to 12 Boeing 737-10 as part of phase two of its narrowbody fleet renewal. MAG plans to modernise its narrowbody fleet by purchasing 55 Boeing 737-8 and 737-10 aircraft by 2030, replacing the older generation of Boeing 737-800. Malaysia Airlines currently offers flights to Beijing, Shanghai, Guangzhou, and Xiamen with a load factor of 80% across China routes in the Q1, showing a strong recovery in traffic and business momentum. Malaysia Airlines operates a fleet of 114 aircraft and has an existing order for 25 Boeing 737-8 through a long-term lease with Air Lease Corp, with 11 aircraft delivered and the remaining are scheduled for delivery by 2027

The Malaysian Aviation Commission (MAVCOM) introduced its newest version of the Airline and Airport Performance Dashboard with insights into the performance of domestic and international airlines operating in Malaysia. Users will be able to see on-time performance, cancellations, delays, and reasons for disruptions in flight schedules. AirAsia, Malaysia Airlines, and Firefly are monitored through this system. If the airlines missed their flight cancellation targets, it could affect their existing services renewal or additional Air Traffic Rights (ATR) application

The Malaysian Aviation Commission’s (MAVCOM) data shows most Malaysia-based airlines missed their 85% on-time performance (OTP) target for international flights in Mar 2025, except for Firefly, the only airline exceeding the target. Firefly recorded 87.7%, followed by Malaysia Airlines 83.7%, AirAsia 83.4%, Batik Air 80.3%, and AirAsia X 79%. For domestic flights, AirAsia X recorded an OTP of 87.5%, Batik Air 87.2%, MASwings 85.7%, and AirAsia 80.4%. Most Malaysia-based airlines improved their OTP in Mar vs Feb. MAVCOM fined AirAsia, AirAsia X, and Batik Air RM4.85 million for not complying with the MACPC, and Malaysia Airports Holdings Bhd RM4.1 million for failing to meet the Airports QoS Framework

AirAsia X will suspend its flights from Kuala Lumpur-Nairobi from 1 Sep 2025 due to “lower than expected travel demand”

Capital A has stated that it is confident that it will complete its Proposed Regularisation and Restructuring Plan by Jun 2025. They noted that their RM1 billion private placement for AirAsia X is almost complete, with a sovereign wealth fund the lead investor. The airline also expected a decision letter from the Securities and Exchange Commission (SEC), Thailand by the first week of May, the aviation business disposal is almost concluded, and the aviation group forecasts to have all 250 of its aircraft reactivated by Jul. It expects a new partnership with Malaysia Airports to enhance its margins, lower oil prices and favourable currency movements to boost its macroeconomic conditions and high load factors above pre-pandemic and a high-yield ancillary income

Capital A is looking at a listing on the Hong Kong Stock Exchange in a move to widen access to the global markets. The group said that it was a “natural next step” after the PN17 regularisation plan’s completion

Malaysia Airports Holdings Bhd (MAHB) is preparing for Visit Malaysia 2026 with the expectation of welcoming more passengers. MAHB’s Senior General Manager said that they are focusing on aviation growth, service, and capacity. In 2024, MAHB expanded its network with 12 new airlines, including 6 operating from Kuala Lumpur International Airport. There are 73 foreign and 6 local airlines operating flights in Malaysia. MAHB is targeting to exceed the 2024 number of new airlines as part of Visit Malaysia 2026 preparation. He added that to grow the Chinese market, they are focusing on strategies to include new airlines and increase the frequencies of current flights. He said that they are using a ‘hunting versus farming’ strategy to look for new airlines while making the best use of the current airlines by sharing the data on underserved routes. He added that Indian airlines are not exercising their bilateral traffic rights to launch flights to Malaysia. MAHB is working in the G2G initiative to encourage airlines to exercise their traffic rights. MAHB is looking to optimise its current airport infrastructure to accommodate the increasing number of passenger volume, however, they need to review the projections since the master plans were drafted before the pandemic. Based on the plan, the capacity of Terminal 1 and 2 is expected to increase from 30 million to 59 million and 45 million to 67 million passengers per year, respectively. The plan included the development of a 4th runway and a new T3 in the future

Malaysia Airlines Bhd and Atout France signed a 3-year MoU to improve tourism promotion and increase visitor arrivals to Paris via Malaysia Airlines’ network

Malaysia Aviation Group Bhd (MAG) announced 2.5 months’ salary in bonuses to employees based on their performance after posting its second consecutive annual profit. In 2024, MAG paid 6 months’ pay as a bonus for their performance in 2023. MAG Managing Director said that passengers will experience high airfares in 2025 as the airline is crippled with supply chain issues such as shortage of spare parts, extra maintenance, and aircraft delivery issues. He added that average airfares are forecasted to remain 4%-6% higher compared to pre-pandemic levels. MAG revised its projection of the GDP for Malaysia to 4% from 4.7% it previously recorded. MAG aims to increase its fleet to 120 aircraft by 2030, an increase from the current 87. MAG is expected to receive 8 more Airbus A330neos and 3 Boeing 737-8 aircraft in 2025

The Director of Marketing and Communications for Dragon Trail International said that flight capacity to Malaysia has reached 126% with 487 weekly flights, and Singapore at 111% with 421 weekly flights

Uzbekistan Airports are in negotiations with AirAsia X to launch regular flights between Kuala Lumpur and Tashkent. The airline plans to launch direct flights to Uzbekistan from Oct

A direct chartered flight will connect Sibu, Malaysia, to Paro, Bhutan from 25 Aug. The chartered flight will be managed by Sak Soon Travel Agencies Sdn Bhd. An MoU signing event was held at the Kingwood Hotel in Sibu

The Prime Minister said the upgrading work at the Sultan Azlan Shah airport in Ipoh is expected to improve trade, industry, and tourism. He added they are targeting routes from Senai, Singapore, and possibly expanding to Kota Kinabalu and Kuching. The project with a cost of RM60 million will be carried out in 2 phases and is expected to increase the airport’s capacity to 700,000 passengers from the current 500,000

Bin Zayed International Group (BZI), UAE and FatHopes Energy (FHE), Malaysia, will work together to build Southeast Asia’s first sustainable aviation fuel (SAF) refineries in Port Klang. BZI’s Managing Director said the refinery will produce SAF via the GEFA pathway, which accounts for 80% of global SAF production. He added that FHE is in the process of getting the necessary approvals to break ground for the project. BZI will support the investment and break ground is expected to happen in 2026 and the operation to start in 2029. FHE said the project is at the feasibility stage and will be developed as a 300,000-tonne-per-annum facility. BZI’s Managing Director said they need hydrogen and nitrogen as a major component of the manufacturing process

AirAsia will organise the AirAsia Travel Fair (AATF) at Suria Sabah Shopping Mall in Kota Kinabalu from 26-27 Apr. The airline will offer exclusive promotions and deals. AATF will support Sabah’s efforts to attract 3.5 million tourists in 2025. AirAsia is offering 21 direct flights from Kota Kinabalu to various destinations, including Seoul, Manila, HCMC, Taipei, Hong Kong, Shanghai, and Chinese cities

AirAsia MOVE has introduced Easy Cancel, which allows passengers to cancel AirAsia flights up to 48 hours before departure and receive a refund in 10 days. The passengers can purchase Easy Cancel with a refund option between 80% and 100%, including for add-ons. This feature will be available for all routes except flights to South Korea and domestic flights for Indonesia. Easy Cancel feature for AirAsia X (D7) flights, like from Kuala Lumpur to Almaty and Sydney, will be available by the end of May

Malaysia Airlines will increase its flight frequencies from Kuala Lumpur to - Melbourne from 16 to 18 weekly flights starting from 29 Sep - Sydney from 17 to 18 weekly flights starting 4 Oct, and to 21 weekly flights from 31 Oct

Malaysia Airports Holdings Bhd (MAHB) Chairman blamed political changes since 2018-2022 for the delay in the KLIA Aerotrain project and denied claims of MAHB’s privatisation as the cause of the delay. He said the decision to replace the Aerotrain system was made in 2016

Malaysia and China will cooperate to improve aviation ties on the development of a ‘twin hub’ cooperation between Kuala Lumpur International Airport (KLIA) and Zhengzhou Xinzheng International Airport. The Transport Minister said this cooperation will improve regional air logistics capacity and facilitate closer economic ties

Juneyao Airlines will launch the Shanghai-Kuala Lumpur route on 28 Jun with 4 flights per week

Malaysia Airlines Bhd (MAB), Brisbane Airport, and Tourism and Events Queensland (TEQ) signed an MoU to improve tourism and air connectivity between Malaysia and Queensland, Australia

Brunei Airlines has joined AirAsia MOVE as a direct airline partner. AirAsia MOVE now partners with over 70 airlines and offers access to 900,000 hotels, airport transfers, travel insurance, and other services

Perak Government will partner with AirAsia and Batik Air to establish a joint committee to study the feasibility of new flight routes from the Sultan Azlan Shah Airport in Ipoh. The airlines will share relevant data with the state government to make planning and analysis

AirAsia X marked the 1st anniversary of Kuala Lumpur-Almaty flight services and has increased its flight frequency to 5 times per week with 27,000 seats in Q2 2025. The airline recorded a 90% load factor since the flight was launched on 14 Mar 2024. AirAsia X signed an MoU with Almaty Tourism to improve tourism flows between Malaysia and Kazakhstan and to position Almaty as a top destination for tourism from Malaysia, Singapore, and Indonesia

The Malaysian Aviation Commission (MAVCOM) resolved 99% of 2,613 complaints (+34% YoY) it received in H2 2024. In 37% of the cases, the airlines reversed their decision in favour of consumers. MAVCOM said 995 of the complaints, or 2,581, were about airlines, and the remaining 1%, or 32, involved airport services. Malaysia Airlines accounted for 921 complaints, AirAsia 611 complaints, and Batik Air 437 complaints. Domestic airlines met the 90% resolution target to close complaints within 30 days, and foreign airlines reported a 54% resolution rate

Brand Finance Airlines 50 2025 report ranked Malaysia Airlines at 45th place, taking a spot in the top 50 after 10 years. The airline also recorded the fastest-growing brand with a 209% increase in brand value to $607 million USD. The airline recorded a 78.2/100 score in the Brand Strength Index (BSI) and AA+ brand strength rating. AirAsia took the 24th spot with a 66% increase in brand value to $1.8 billion USD. AirAsia ranked as the world’s 11th strongest airline brand with an 84.2/100 BSI score and a AAA-brand strength rating. Malaysia Airports ranked 7th in the Airports 25 2025 with an 83% increase to $184 million USD in brand value, 80.3/100 BSI score, and an AAA-rating

Santan, Capital A’s F&B business, will replace single-use plastics with biodegradable materials. Santan will use polylactic acid (PLA) made from corn and cassava for all inflight disposable items. Rightway New Material developed the materials, and the study shows PLA breaks down by over 90% in industrial composting. Santan CEO claimed that with this initiative, AirAsia will reduce carbon emissions by 500 tonnes annually in Malaysia and Thailand, where the initiative will begin before expanding to 7 airlines under AirAsia’s brand

Malaysia Aviation Group’s (MAG) Managing Director warned that operating costs could increase by 25% due to supply chain issues and US tariffs. He said these issues could impact MAG’s profitability in 2025. MAG are not expecting any delays in the scheduled delivery of 18 Boeing 737-8 and 12 Boeing 737-10 aircraft, which are slated to arrive from 2029

Capital A will ask shareholders to approve a RM6 billion capital reduction to allow the company to offset its accumulated losses and shore up its balance sheet during an extraordinary general meeting on 7 May, as part of its regularisation plan. Capital A will submit the plan to the High Court for confirmation and hopes to complete the plan by Jun. After Capital A completes capital reduction, its shareholder equity will drop to RM742.1 million

Batik Air will resume Tashkent-Langkawi flights from 1 Jun, flying every Sunday. The Langkawi Development Authority (LADA) CEO said this initiative will support their effort to attract 3.5 million visitors to Langkawi. She confirmed a charter flight service between Warsaw-Langkawi will begin from Nov 2025 after the 22 charter flight services ended in Mar 2025

Malaysia Aviation Group (MAG) is in talks with Boeing to see if it can accelerate its fleet delivery given the potential delivery slots for Chinese airlines which have now been vacated due to the ongoing US tariffs situation. The Group MD noted that it was not a straightforward situation, and that any additional aircraft would not be part of its initial order for 25 under Air Lease Corporation, which would require raising additional funds. The airline noted that it is seeking to transition its fleet to more of a widebody focus by 2025, to allow it to carry more seat capacity to ASEAN routes, rather than increase flight frequencies