Malaysia Airlines looks beyond financial rebound – part two: competition and network strategy

Although Malaysia Airlines has achieved a significant milestone with its return to profitability, the airline is retaining its cautious approach to capacity and fleet growth.

Part one of this analysis looked at the group's remarkable financial turnaround, and the pending narrowbody and widebody aircraft orders this has enabled. Most of the new aircraft are aimed at fleet renewal rather than growth, though; particularly in the short term.

The second part of the analysis focuses on the Malaysia Aviation Group's (MAG) competitive position and network strategy. Strong short haul competition from a large LCC rival has meant that Malaysia Airlines has looked to enhance its international services.

Despite its conservative growth strategy, the airline is still able to add some destinations this year to boost its network offering.

International connecting flows also remain an important part of the group's strategy.