Malaysia domestic aviation 2016: AirAsia impacted as Rayani enters, Malaysia Airlines resumes growth

Premium Analysis

Competition in Malaysia's domestic market will intensify in 2016 as Malaysia Airlines resumes growth and start-up Rayani Air expands. The Malaysian domestic market should experience significantly faster growth than 2015 but yields will be under pressure, impacting profitability.

Malaysia's domestic market grew by only 2% in 2015, marking the slowest rate of growth since 2006. The market has more than doubled in size since 2003, driven by expansion from AirAsia.

Malaysia Airlines domestic traffic has dropped significantly over the last six months and total domestic capacity in Malaysia is currently below year ago levels. But Malaysia Airlines expects to resume growth after opening seven new bases in secondary cities and introducing a new domestic schedule in Apr-2016. Meanwhile Rayani will begin competing on already crowded domestic trunk routes, joining AirAsia, Malaysia Airlines and Malindo Air.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 2,873 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.