Malaysia AirAsia: challenges emerge to recent good results but costs, brand awareness are strengths

Short haul LCC group AirAsia faces intensifying competition in its original home market of Malaysia. Malaysia AirAsia (MAA) is no stranger to fierce competition and has the cost structure to fight back, but the price might be a dilution of recent yield and load factor improvements.

MAA has benefitted over the last year from the restructuring of Malaysia Airlines and an improvement in overall market conditions. However, the new Malaysia Airlines is starting to emerge as a tougher competitor, with a new, more aggressive pricing strategy. Meanwhile Lion Group's Malaysian JV Malindo Air is again accelerating expansion, targeting several of AirAsia's most lucrative routes.

Over the past two months CAPA has published a comprehensive series of reports analysing the new strategy of the Malaysia Airlines Group, Malindo and AirAsia X. In this report CAPA examines the outlook for Malaysia's largest airline, MAA.