The Civil Aviation Authority of Malaysia (CAAM) is seeking public comments on an application for an individual exemption concerning a joint venture between Malaysia Airlines and Philippine Airlines.
According to the application, the arrangement covers only passenger flights between Malaysia and the Philippines, and does not include subsidiaries or sister airlines. It includes revenue sharing, capacity, schedule and fare coordination, as well as sales and marketing cooperation. The initial term will be at least five years, after which it will be renewed every five years by mutual agreement.
Currently, six airlines operate a combined total of 60 round trips between Malaysia and the Philippines: Malaysia Airlines, Philippine Airlines, AirAsia, Philippines AirAsia, Cebu Pacific, and Firefly.
The two airlines cite benefits including improved connectivity through expanded codesharing, lower fares through the elimination of double marginalization, enhanced corporate services, integration of mileage programs, and improved rebooking arrangements in the event of operational disruptions. They argue that sufficient competitive pressure exists and that the arrangement would not substantially lessen competition.
The two airlines have operated codeshare flights since 2010. Philippine Airlines has also announced that it will join the oneworld alliance, of which Malaysia Airlines is a member.
The application was submitted to CAAM on September 29, 2026, and was accepted on October 16 following a completeness review. On October 20, a public version of the application was published for public consultation. The airlines said they will also consult with the Philippine Competition Commission (PCC).
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