Penang International Airport

Malaysia Airlines finally gives oneworld a presence in fast-growing Southeast Asia market

Malaysia Airlines (MAS) formally joined oneworld on 1-Feb-2013, giving the alliance 12 full members and its first member in Southeast Asia. For oneworld, MAS fills a white spot in one of the world’s fastest growing regions. For MAS, oneworld supports the carrier’s new focus on the premium end of the market.

MAS is in the latter stages of a restructuring which began at the end of 2011, when it unveiled a new business plan. Joining oneworld is a key component of the business plan. While only three oneworld members currently serve MAS’ Kuala Lumpur hub, joining the alliance expands its virtual network and increases its relevance in the premium market.

New oneworld member Malaysia Airlines seeks to finally turn the corner in 2013 but challenges remain

Malaysia Airlines (MAS) is starting to show some signs of progress in its latest turnaround effort, after a year of restructuring and almost constant adjustments to its new business plan. The carrier’s management team is confident the flag carrier will finally turn the corner in 2013 and that its upcoming entrance into oneworld particularly boosts its outlook. But MAS still faces several challenges and there is always a risk of Malaysian politics quickly erasing the positive aspects of the recent restructuring.

MAS should not be banking on oneworld, which it will formally enter on 01-Feb-2013, being its panacea. Only three oneworld carriers serve Kuala Lumpur and relations with MAS’ sponsor, Australia’s Qantas, cooled significantly earlier this year after talks over establishing a new joint venture carrier ended.

Project Orca, which envisioned Qantas and MAS joining forces to establish a new Malaysia-based A330 operator on routes within Asia-Pacific including Australia, was a logical solution for both carriers’ international woes. But MAS strongly disapproved of the commercial terms proposed by Qantas and now that Qantas has got into bed with Emirates it faces the prospect of the carrier which brought it into oneword emerging as a bigger competitor rather than key partner.