Malaysia Airlines left out in the cold with JQ/AK tie-up

Malaysia Airlines could be the big loser in the Jetstar and AirAsia tie-up announced earlier this month, as a partnership deal with legacy carrier Qantas now seems highly unlikely.

For quite some time Qantas has seen Malaysia Airlines, as well as Malaysia itself, as conducive to its growth plans in Asia, notes a new report from the Centre for Asia Pacific Aviation (CAPA).

Early last year, a possible maintenance joint-venture between Malaysia Airlines and Qantas was placed on the backburner, still relationships have remained strong.  But with this new partnership with one of the Malaysian carrier's biggest rivals may be a stumbling block.

"The big potential loser in the AirAsia/Jetstar deal is Malaysia Airlines. After a remarkable turnaround in 2007, MAS is now again struggling seriously, as premium demand slips and as AirAsia, with its much lower cost base, becomes more powerful," says CAPA in its analysis.

"AirAsia's tie up with the powerful Qantas Group will do nothing to reduce the Malaysian flag carrier's problems. It may well even bring things to a head. MAS is going to need to take some difficult decisions."

But the report ventures on to say that although highly unlikely, a way out could be a massive "four-way tie-up" with Qantas/Jetstar/AirAsia/MAS, and while difficult to construct, and also likely difficult to be approved by consumer watchdogs, would be a powerful force to reckon with.

CAPA is of the opinion that this would see a "linking [of] Australian and Malaysian markets, with multiple hubs, and you have a killer combination would really create waves. Great for consumers, great for the respective airports and airlines, a great trade link between the two countries and a massive opportunity to plunder the growing Asian market.

"That really would be a model for the future."