Malaysia Airlines & Singapore Airlines: competitors, natural partners

Malaysia Airlines and Singapore Airlines are pursuing increased cooperation as the two airline groups increasingly rely on partnerships to improve their strategic position in Southeast Asia's highly competitive marketplace. While the two airline groups will remain competitors, there are mutually beneficial opportunities for close cooperation, particularly in the Malaysia-Singapore market.

The two have a deep-rooted history, having been split from a single airline in 1972, seven years after Singapore gained independence from Malaysia. Singapore-Malaysia relations have hardly been warm, but their flag carriers have maintained a limited codeshare relationship and have remained on relatively friendly terms.

Singapore Airlines has clearly been more successful, reporting annual profits every year without a single blip and becoming one of the world's best premium airlines.

Malaysia Airlines has struggled, reporting losses most years despite multiple restructuring attempts, and has been shrinking. An investment or merger is unlikely at this stage, but Malaysia Airlines could still gain from partnering and learning from its neighbour.