Malaysia Aviation Group looks to expand China operations

Recognizing China as its second-largest market outside Malaysia, as well as one of its fastest-growing markets, Malaysia Aviation Group has expanded its capacity in China by more than 40 percent in the past year, with further plans under consideration, including the introduction of new airlines, according to the group’s top executive.

“We believe China is the right market for Malaysia Airlines to focus on. The economic fundamentals are strong, and we can conduct a lot of business between the two countries through Malaysia Airlines,” said Nasaruddin A Bakar, president and group CEO of Malaysia Aviation Group, during an exclusive interview with China Daily.

According to Bakar, Malaysia Airlines has increased its weekly flights from 52 in 2025 to 74 in 2026, representing an increase of about 42 percent. China is now Malaysia Airlines’ second-largest international market by number of destinations served.

“Malaysia Airlines wants to be at the center of this relationship and serve as a connector between the two countries,” he said.

Bakar expects China to play a very important role in the carrier’s business strategy, “at least for the next ten years or even longer”.

In his opinion, China’s strong and resilient economic growth is one of the most important reasons that investors remain bullish on the country.

“China is one of the strongest economies in the world. Based on the current trends, I believe China will continue to outperform in economic terms. GDP growth has been strong and inflation has been very healthy,” said Bakar.

Data from China’s Ministry of Foreign Affairs show that China has been Malaysia’s biggest trading partner for 17 years in a row. Bilateral trade between China and Malaysia reached $191.7 billion in 2025, with China exporting $103.68 billion to Malaysia and importing $87.99 billion.

“China is one of Malaysia’s top trading partners. There is a lot of trade between the two countries, including in the cargo segment, the passenger segment and people-to-people exchanges,” said Bakar.

The two countries have a very strong friendship, and Malaysia Airlines wants to be part of that because the strong government-to-government relationship creates a positive environment for business and exchanges between people, he added.

More than 800,000 passengers traveled between Malaysia and China on Malaysia Airlines flights in the first eight months of this year, up 24 percent year-on-year.

Three new destinations have been introduced by the carrier since the beginning of 2026, including Chengdu, Sichuan province, in January, as well as Changsha, Hunan province, and Shenzhen, Guangdong province, both in July, bringing the total number of destinations served by Malaysia Airlines in China to nine.

Previously, the carrier operated flights to six locations in China: Beijing, Shanghai, Guangzhou in Guangdong province, Xiamen in Fujian province, Hong Kong and Taipei.

“China is a very large country. Our focus is not only on the eastern side. We are looking at eastern China, central China and western China. With Shenzhen, we are also focusing on China’s Guangdong-Hong Kong-Macao Greater Bay Area,” said Bakar.

“We believe the market is huge. We do not want to serve only one part of the Chinese market. We are trying to expand across China, provided that the economics are right and there is sufficient market demand,” he added.

The substantial growth in capacity is driven by demand and the huge potential for travel between China and Malaysia. “We are seeing growth in the leisure segment as well as the corporate segment. In fact, we have seen our corporate segment grow by more than 40 percent year-on-year,” said Bakar.

In addition to raising its capacity in China by about 40 percent over the past two years and expanding from six gateways to nine gateways, the group is conducting further analysis to assess opportunities, demand and economic viability for opening new stations.

“In fact, I would also highlight that Firefly is planning to enter China through a Kuala Lumpur–Kunming (Yunnan province) service,” Bakar said, adding that the date of Firefly’s first entry into China is subject to final approval from regulatory authorities.

Malaysia Aviation Group operates three airlines, namely Malaysia Airlines, Firefly and Amal.

“We believe the reciprocal visa-free arrangement has created a lot of buzz between the two countries and among tourists ... We believe the good relationship between the two governments is very important. It allows us to do business seamlessly as an airline and also supports exchanges between the two countries,” Bakar said. “We believe China is a network that we need to focus on.”