Cathay Pacific and Malaysia Airways have determined to not transfer ahead with their plans for a joint-business after going through considerations from regulators in Malaysia. The regulators expressed fear over the potential discount in competitors that will end result from the partnership. Each airways, that are a part of the Oneworld alliance, had meant to determine a metal-neutral joint enterprise for flights between Malaysia and Hong Kong.
The proposed partnership, which was initially introduced in Might 2022, included numerous areas of cooperation similar to income and cost-sharing, pricing coordination, community planning, schedule coordination, service and product coordination, in addition to joint gross sales and advertising. Nevertheless, the Malaysian Aviation Fee (Mavcom) discovered that this joint enterprise would considerably lower competitors within the Kuala Lumpur-Hong Kong market.
Mavcom acknowledged that each airways are one another’s major rivals on the route, and eradicating this competitors may doubtlessly end in damaging results for customers, similar to elevated costs or lowered service ranges. In January and March of this yr, the fee expressed its considerations to the 2 carriers relating to the discount in competitors.
Sadly, regardless of discussions between Mavcom and the airways, an settlement couldn’t be reached on measures that will adequately handle the fee’s considerations. In consequence, the plans for the joint enterprise have been deserted.
In keeping with Cirium schedules information, there are at present 4 carriers providing flights between Hong Kong and Malaysia. AirAsia Malaysia has the very best frequency with 34 weekly flights from Kuala Lumpur, Kota Kinabalu, and Penang. Malaysia Airways operates 10 weekly flights between Kuala Lumpur and Hong Kong, whereas Cathay Pacific operates twice-daily flights between the 2 cities and a further 4 weekly flights to Penang.