Malaysia Airlines considers tie-up with Etihad Airways as restructuring process slowly begins

As Malaysia Airlines (MAS) and the Malaysian government start to consider restructuring options, the possibility of a tie-up with Etihad Airways has emerged. An MAS-Etihad partnership would be logical for both carriers and have repercussions in the dynamic Southeast Asian marketplace.

MAS would initially forge a comprehensive codeshare partnership with Etihad, building on the limited codesharing the carriers already have in place. But with Etihad an equity stake is also always a possibility. Ultimately the ball will be in the Malaysian government's court to determine if such a scenario is palpable, adding to the difficult decisions the government is already confronted with as MAS requires a deep restructuring and potentially out of the box solutions to survive.

In the meantime MAS is sounding out its oneworld partners. While MAS does not need oneworld approval to forge a relationship with Etihad, it is only courteous - and sound business practice - to give Qatar Airways and other alliance members an opportunity to come to the table with alternatives.