Malaysia: Visa-free agreements set to propel air passenger traffic growth

Air passenger traffic volumes have been on the rise and the anticipated reciprocal visa-free entry agreement between China and Malaysia from December 1 onwards is expected to give it a further boost. Malaysia has also decided to unilaterally extend a similar arrangement to India and the Middle East. According to MIDF Research, the traffic numbers in Q4 2023 will receive additional support from the gradual full fleet reactivation of Malaysia AirAsia (MAA), scheduled for completion in December 2023. The research firm said its passenger traffic projections remain unchanged, aligning well at 75% of its full-year estimate and with an anticipated stronger performance in December 2023. "Our expectation is an 85% recovery this year (domestic: 90%, international: 80%)," MIDF, which has a “neutral’’ stand on the aviation sector, said. It notes that for the month of October, Malaysia’s passenger movements steadily recovered as airlines address fleet shortages caused by supply chain and maintenance, repair, and overhaul (MRO) challenges.<br/>