AirAsia 2016 outlook Part 4: Malaysia expansion focuses on international routes from secondary bases

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Malaysia AirAsia (MAA) is focusing on expanding secondary bases in 2016 as its fleet grows by three aircraft. The Kuala Lumpur-based short haul LCC is adding four international routes from secondary cities in 1Q2016, giving it a total of 20 international routes from six secondary cities.

MAA is the largest airline in Malaysia and has been able to increase its market share over the last year while traffic in the overall Malaysian market has been flat. Growth should resume in 2016 in both the domestic and international markets, driven partially by MAA expansion, but competition is also intensifying as other Malaysian airlines expand.

China, particularly, is a fast-expanding market from Malaysia. Two of the four routes that MAA is launching are 1Q2016 are to China, while the other two are to Myanmar and Vietnam.

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