The Malaysian aviation sector faces uncertainty as the government pushes multiple agendas that will shift the ground and sky significantly for the sector. Apart from restructuring industry regulator Mavcom, it is also looking to break the monopoly of MAHB by opening the industry up to more airport operators, not to mention possibly instructing Khazanah Nasional to pare down its stake in MAHB.

Meanwhile, the government has conceded defeat in trying to turn around loss-making Malaysia Airlines, which it has controlled since 2000. It seeks to bring a strategic investor into the airline, and that will significantly alter the dynamics of the intensely competitive Malaysian domestic market that is home to four carriers despite a relatively small population of 30 million.

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