KUALA LUMPUR, Malaysia (AP) — Malaysia Airlines' split with budget carrier AirAsia just eight months after they joined forces may jeopardize its plan to turnaround from hefty losses by focusing solely on premium business.
The two airlines have terminated a share swap deal but said they would continue to collaborate in procurement and aircraft maintenance. The share swap was opposed by the airline workers union.
More and more regional full-service carriers are setting up no-frills units to win passengers.
Analysts say it is unclear if there are now enough benefits in the collaboration with AirAsia for Malaysia Airlines to bank on being a full-service carrier alone.