Malindo Air downsizing shakes things up

KUALA LUMPUR: Malindo Air's downsizing of its Malaysian fleet will have a spillover effect on local aviation players, eight years after it first disrupted the local industry by setting up operations here.

"With Malindo likely operating a reduced fleet going forward, it stands to reason that the main loser will be Malaysia Airports Holdings Bhd (MAHB) via lower Malaysian passenger traffic and the main winner will be AirAsia Group Bhd via higher Malaysia AirAsia average fares," said Maybank Investment Bank Research in a note.