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Australia-Malaysia market: Malaysia Airlines to regain market share as it expands; AirAsia X cuts

Analysis

Malaysia Airlines will regain Australia-Malaysia market share as it adds back capacity on the heels of a reduction from its rival, AirAsia X.

In Jun-2018 Malaysia Airlines is resuming the Kuala Lumpur-Brisbane route, which it suspended in 2015, and adding frequencies to Adelaide and Perth.

The additional flights will boost Malaysia Airlines' seat capacity to Australia by 21%, partially offsetting a 40% cut that was implemented in 2015 as the airline restructured. The increase from Malaysia Airlines follows a 26% cut in Australia-Malaysia capacity by AirAsia X, which will be implemented at the beginning of Feb-2018.

Australia-Malaysia has been a very dynamic market in the past five years, with the two main competitors making major adjustments multiple times - both increases and decreases. The jockeying between Malaysia Airlines and AirAsia X is continuing in 2018.

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