14-07-2025
- Business
- New Straits Times
Mavcom to review Malaysia Airlines-SIA joint business despite Singapore's green light
KUALA LUMPUR: The Malaysian Aviation Commission (Mavcom) says it will carry out its own independent review of the proposed joint business between Malaysia Airlines and Singapore Airlines, despite Singapore's conditional approval.
The aviation regulator said the assessment of the partnership is still ongoing despite the Competition and Consumer Commission of Singapore (CCCS) granting the conditional nod for the proposed cooperation.
"Notwithstanding CCCS' decision, Mavcom will independently evaluate the application in accordance with its own guidelines and procedures, as stipulated under the Malaysian Aviation Commission Act 2015 [Act 771]," a Mavcom spokesperson told Business Times.
Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, confirmed that it is in discussions with Singapore Airlines on a potential joint business arrangement.
The group also said that it is committed to regulatory compliance throughout the evaluation process.
"The proposal has received conditional approval from the CCCS and remains subject to clearance from Malaysian regulators. Malaysia Airlines continues to ensure full compliance with all regulatory requirements as the process progresses," MAG spokesperson told Business Times.
MAG said the potential joint business is designed to enhance connectivity between Malaysia Airlines and Singapore Airlines and deliver greater value to passengers travelling between the two neighbouring countries.
Neither Mavcom nor MAG provided any expected timeline on the approval process.
Mavcom will be merged into the Civil Aviation Authority of Malaysia (CAAM) by Aug 1 and the latter will take over the former's economic regulatory functions, becoming the sole aviation regulator in Malaysia.
Currently, Malaysia has two aviation regulators – CAAM and Mavcom.
Malaysia Airlines and Singapore Airlines had planned to cooperate on various areas of their businesses, including scheduling, pricing, sales and marketing and expansion of code-sharing of flights.
The CCCS said in a statement that it had approved the proposed cooperation on July 7, subject to the accepted commitments.
The Singapore competition regulator said it had first received an application from Malaysia Airlines and Singapore Airlines on March 24, 2023 to determine whether the carriers' proposed cooperation would constitute an anti-competitive agreement under Singapore's Competition Act 2004.
A follow-up submission was made by the airlines on Nov 3, 2023 clarifying that the scope of the proposed cooperation would be limited to their full-service carriers, namely Malaysia Airlines and Singapore Airlines, and not including the airlines' budget carrier subsidiaries Firefly Sdn Bhd and Scoot Tigerair Private Limited.
CCCS chief executive officer Alvin Koh said the joint business between the two airlines could offer better connectivity and options for consumers as well as allowing the flexibility to react to market developments and ensure that more flights will be added along the Singapore – Kuala Lumpur route.
He added that the flights would offer consumers more travel options and better prices for passengers long-term.
"CCCS will continue to monitor developments in this sector to ensure that the competition can yield good outcomes for consumers," Koh said in a statement.
