Malaysia Airlines and Philippine Airlines have applied to CAAM for a competition exemption for a revenue-sharing joint business. Comments close on 20 November 2026.
Cover image: A Malaysia Airlines Boeing 737-800 at Kuala Lumpur International Airport (2025 file photo) — photo by Bahnfrend, CC BY-SA 4.0, via Wikimedia Commons.
Malaysia Airlines and Philippine Airlines have asked Malaysia's aviation regulator to exempt a planned revenue-sharing partnership from competition law, and rivals and travel buyers have one week left to object. The Malaysia Airlines Philippine Airlines joint business would cover every scheduled passenger flight the two carriers operate between the two countries, according to an application published by the Civil Aviation Authority of Malaysia (CAAM). Written feedback closes on 20 November 2026.
The filing, reference CAAM/ENC/COMPETITION/IE/2026(05), was made on 29 September, deemed complete on 16 October and published in redacted form on 20 October. It describes a "metal neutral" arrangement involving "revenue sharing, capacity, schedule and pricing coordination, and cooperation in sales and marketing" for a minimum of five years. The agreement is unsigned, and market shares, seat counts and fare figures are redacted in the public version.
What have Malaysia Airlines and Philippine Airlines asked CAAM to approve?
An individual exemption under section 36Q of the Civil Aviation Authority of Malaysia Act 2017. Malaysia Airlines Berhad filed the application with Philippine Airlines' consent.
Under metal neutrality, the filing explains, each airline shares in the revenue "regardless of which Party actually transports the passenger". That goes well beyond the codeshare agreement the pair have had since 2010, under which, the application says, each side is still "incentivised to maximise their own individual economic benefits".
The initial term is five years, renewable for another five by mutual agreement. Domestic Malaysian flights and routes outside the two countries are excluded, and the applicants say they do not intend to include Firefly, Amal or Air Philippines Corporation as parties.
How much of Kuala Lumpur–Manila would the Malaysia Airlines Philippine Airlines joint business control?
By flights, just over half. Kuala Lumpur–Manila is the only route both airlines fly non-stop. Table 1 of the filing, citing OAG data, shows 60 weekly return frequencies on the route in June 2026. Malaysia Airlines and Philippine Airlines operated 32 of them, or 53 per cent by our calculation.
That counts flights only. Weekly seats are redacted for every carrier, so no share by seats or passengers can be worked out. The filing's own market-share ranking for the route, with the leader's name redacted, puts Malaysia Airlines second, Cebu Pacific third and Philippine Airlines fourth.
| Airline | Weekly return frequencies, June 2026 | Share of frequencies (our calculation) | Weekly return trips, January 2027 schedule |
|---|---|---|---|
| Malaysia Airlines | 21 | 35.0% | 28 |
| Philippine Airlines | 11 | 18.3% | 10 |
| Malaysia Airlines + Philippine Airlines | 32 | 53.3% | 38 |
| AirAsia and Philippines AirAsia | 21 | 35.0% | Not disclosed |
| Cebu Pacific | 7 | 11.7% | Not disclosed |
| Total | 60 | 100% | Not disclosed |
On its January 2027 schedule the filing counts 28 weekly Malaysia Airlines return trips and ten by Philippine Airlines, 38 in all.
Why do the airlines say competition would survive?
Their case rests on low-cost rivals. Six carriers operated direct flights between the two countries in June 2026, the filing says: the two applicants, Malaysia AirAsia, Philippines AirAsia, Cebu Pacific and Firefly. It adds that Batik Air Malaysia holds unused rights for seven weekly Kuala Lumpur–Manila flights.
It also points to carriers with fifth-freedom rights: KLM flew Kuala Lumpur–Manila from March to October 2023. No airline does so today, the application acknowledges.
The promised gains lie mostly beyond Manila. On the January 2027 schedule, the filing says, the existing codeshare links 16 Malaysian cities with 12 Philippine ones, and the number of Philippine points to be added is redacted.
What happens after 20 November?
CAAM has published no timetable. The filing says the agreement "will be signed and executed by the Parties after exemption from CAAM has been obtained and after prior consultation with PCC", the Philippine Competition Commission.
Precedent suggests patience. CAAM received the complete Malaysia Airlines–Singapore Airlines application on 22 February 2024, according to its proposed decision of 23 October 2025, and Malaysia Aviation Group said approval came in January 2026. That is close to two years, and the proposed decision tied the five-year exemption to capacity commitments.
Philippine Airlines signed a memorandum of understanding on 6 June 2026 to become the 16th member of oneworld, the alliance Malaysia Airlines already belongs to. AeroRoutes reported on 6 November that the pair had extended their codeshare to Toronto and Vancouver from Manila and to Medan, Phuket and Surabaya from Kuala Lumpur.
Frequently asked questions
What is the Malaysia Airlines and Philippine Airlines joint business?
It is a proposed revenue-sharing partnership covering all scheduled passenger flights the two airlines operate between Malaysia and the Philippines. The carriers would share revenue and coordinate capacity, schedules, pricing, sales and marketing for a minimum of five years. It has not been approved or signed.
When is the deadline to comment on the application?
Written feedback must reach the Civil Aviation Authority of Malaysia by 20 November 2026. The regulator's notice says submissions should be titled "Proposed Joint Business Between Malaysia Airlines Berhad and Philippines Airlines, Inc." and emailed to competition@caam.gov.my, marking any confidential information.
Which routes would the joint business cover?
Only Malaysia Airlines and Philippine Airlines passenger services between Malaysia and the Philippines, which today means Kuala Lumpur–Manila, the one route both operate non-stop. Domestic flights within Malaysia and routes outside the two countries are excluded. Firefly, Amal and Air Philippines Corporation would not be parties, the application says.
Has the joint business been approved?
No. As of 13 November 2026 it is an application under consultation. The filing says the agreement will be signed only after the Malaysian regulator grants an exemption and after consultation with the Philippine Competition Commission. No decision date has been published.
Sources
- Civil Aviation Authority of Malaysia, application summary and consultation notice, MH–PR joint business
- Civil Aviation Authority of Malaysia, public version of the individual exemption application
- Civil Aviation Authority of Malaysia, proposed decision on the Malaysia Airlines–Singapore Airlines joint business
- Malaysia Aviation Group, Malaysia Airlines and Singapore Airlines formalise joint business partnership
- oneworld, Philippine Airlines to join oneworld alliance
- AeroRoutes, Malaysia / Philippines expands codeshare partnership from Nov 2026
