MYAirline to make moderate impact on Malaysian aviation - Maybank IB

A new budget carrier, MYAirline, is slated to commence operations this month, drawing comparison with the entry of Malindo Air in 2013. Going by past experience, the entry of a new airline into Malaysia's aviation market should be positive for Malaysia Airlines Holdings and negative for low-cost airline group Capital A Bhd. Maybank Investment Bank Research noted that the last time a Malaysian airline commenced operations was with the launch of Malindo in 2013. "MAHB Malaysia passenger traffic surged 18% YoY while Capital A’s AirAsia Malaysia average fares fell 10% YoY in 2013. "Essentially, the entry of a new airline is positive for MAHB but negative for Capital A," the research house said in a report. However, it noted that industry capacity going forward will be more moderate despite the entry of MYAirline, leading to more moderate positive/negative impact to MAHB and Capital A this time around.<br/>