British Airways' comeback disrupts MAS monopoly but positive for market, say analysts

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KUALA LUMPUR: British Airways' resurgence on the Kuala Lumpur-London route is set to challenge Malaysia Airlines' longstanding monopoly, potentially lowering fares due to increased competition, according to aviation analyst Mohsin Aziz.

KUALA LUMPUR: British Airways' resurgence on the Kuala Lumpur-London route is set to challenge Malaysia Airlines' longstanding monopoly, potentially lowering fares due to increased competition, according to aviation analyst Mohsin Aziz. Despite the rivalry, Mohsin views the development positively, noting that both airlines are members of the Oneworld alliance, which allows them to benefit mutually from integrated services such as cross-selling and redeeming reward miles."Overall, I think this is healthy, as any reduction in air fare will spur more demand from more people and potentially lure people who currently fly to London indirect via other Asian or Middle Eastern carriers to Malaysia Airlines," told Business Times.

Yesterday, British Airways resumed its services to Malaysia after a nearly five-year hiatus, with its first flight since 2021 landing at Kuala Lumpur International Airport (KLIA). The UK flag carrier had suspended the route due to the Covid-19 pandemic.Mohsin said the increased competition between British Airways and Malaysia Airlines could lead to better service and more competitive pricing, ultimately benefiting consumers.



"It will potentially lure people who currently fly to London indirect via other Asian or Middle Eastern carriers to Malaysia Airlines. A large segment of air travellers are value seekers, and they quickly switch airlines that offers the best value proposition," he added.Another analyst, Syukor Yusof said British Airways' return could be Malaysia Airports Holdings Bhd's (MAHB) stategy to attract foreign airlines following its privatisation.

He noted that MAHB recognises it cannot depend solely on Malaysia Airlines to drive traffic and maintain its status as a global air travel hub, due to the carrier's ongoing financial and operational challenges."There will always be competition even among codeshare partners. In the long run, it's more disadvantageous to Malaysia Airlines as its 'home ground' will be eroded," he added.

Business Times has reached out to Malaysia Airlines for comment.The relaunch of British Airways' London-Kuala Lumpur route is a strategic effort to strengthen the Oneworld alliance's presence in Southeast Asia. KLIA, which already hosts alliance members like Malaysia Airlines, Japan Airlines and Cathay Pacific, is set to welcome additional European carriers soon.

Transport minister Anthony Loke said British Airways' return enhances Malaysia's connectivity with the United Kingdom, a key partner in trade and tourism, while supporting the growth of the aviation sector.He said British Airways' presence in Kuala Lumpur will strengthen the country's position as a transit hub for travellers en route to other Asean destinations, aside from boosting travel between Malaysia and Europe."Malaysia's aviation industry has demonstrated strong recovery and resilience, with passenger traffic expected to exceed 100 million in 2025," he said at the welcoming reception of the inaugural flight of British Airways to Kuala Lumpur on Wednesday.

"The return of British Airways strengthens our connectivity with the United Kingdom, one of our key trade and tourism partners, and contributes to the growth of our aviation sector," he added.British Airways initially suspended its Kuala Lumpur flights in 2021 due to widespread disruptions caused by the Covid-19 pandemic. While the airline had originally planned to resume the route in November 2024, the relaunch was postponed to April 2025 due to excessive wear and tear on the Rolls-Royce Trent 1000 engines powering its Boeing 787 fleet.

It resumed daily operations at KLIA using the Boeing 787-9 Dreamliner for direct flights between London Heathrow (LHR) and Kuala Lumpur (KUL).It was reported that the Boeing 787-9 aircraft chosen for the LHR-KUL route features enhanced fuel efficiency and passenger comfort, reflecting BA's commitment to delivering high-quality international travel experiences.© New Straits Times Press (M) Bhd.