In the last few years, there has been a major shift in the dynamic of Malaysia’s airline industry. Many new players have entered this once-crowded segment, and many old airlines have ceased their operations. The transformation is still ongoing – no one can predict what the landscape will look like in the future, but we can be sure that it won’t be the same again. With so much going on, it’s hard to keep track of everything.
Here is an article that shed light on how things are right now and what might be coming up in the future for Malaysia Airlines (and its competitors).
Who Are The Major Players?
Malaysia Airlines – Malaysia Airlines Company was the first airline to offer commercial flights out of Malaysia. It was founded in the 1930s and has remained a dominant player in the industry ever since. Its recent troubles have hurt its reputation and financial health, but it is still a powerful brand in Malaysia. AirAsia – AirAsia has become famous for its low-cost business model. It has been steadily growing over the past decade – and along the way, it has amassed a huge portfolio of subsidiaries. It is still a fundamentally strong brand, but it is often associated with its low-cost business model as well as its connections to Etihad/Emirates. Fly – Fly (formerly known as Malindo Air) has also established itself as a major carrier in the Malaysian market – especially in the short-haul segment. Originally an offspring of Lion Air, it has re-branded itself as a Malaysian carrier with a focus on domestic routes. The above three are the most prolific players in Malaysia’s airline industry.
Two other carriers have recently received approval from the Malaysian government to fly internationally. They are: Traveller – Traveller (formerly known as Air Asia Indonesia) is a carrier owned by the same people who own AirAsia and its many subsidiaries. This airline has been flying between Indonesia and Malaysia for a while. It has now received approval for flights to Singapore and Australia. Malindo Airways – Malindo Airways is another offspring of Lion Air. It is a new airline that received approval to fly internationally from Malaysia.
Why Has Malaysia Airlines Suffered?
As with any other industry, the airline business is susceptible to market fluctuations. Some years are better than others – and some airlines are more successful than others during these years. In recent years, Malaysia Airlines has struggled with weak financial results. Despite being the first airline in Malaysia, it has been surpassed by other airlines in terms of both passenger volumes and profitability. The airline has suffered badly from the massive drop in the number of travelers coming to Southeast Asia.
Many people have been avoiding visiting countries like Malaysia due to fears of contracting the Zika virus. In 2016, Malaysia Airlines had to declare bankruptcy. It was purchased by a new company (now known as MASwings) that was formed by the Malaysian government.
What Is Coming Up for Malaysia Airlines?
Over the past year, Malaysia Airlines has been restructuring itself and trying to improve its financial performance. It has been focusing on increasing its Southeast Asian operations and reducing its long-haul operations. It has also been engaged in a rebranding exercise, with a new logo and livery. It is expected that the airline will only announce its new strategy in early 2019.
From what we have heard from the management of the company, the airline will be focusing on gaining market share in Southeast Asia. We will likely see new long-haul services being launched by the airline in Southeast Asia.
Fly
Fly (formerly Malindo Air) has been one of the fastest-growing airlines in Malaysia over the past few years. It has been operating flights to various destinations in Southeast Asia and attracting millions of passengers. It has recently rebranded itself as Fly with new branding and livery. It has also received approval to fly internationally to destinations like Japan, Taiwan, Australia, Thailand, and China.
