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The Philippines and Malaysia have updated their almost 50-year old air services agreement to boost airline competition and connectivity between the two countries
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Changes to the 1978 Air Services Agreement were reached following bilateral negotiations held in Putrajaya on March 4-5
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Revised airline designation rules now recognize carriers based on their principal place of business rather than ownership
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The change is expected to allow more airlines to operate routes, increasing competition and potentially lowering fares
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The updated pact also promotes joint ventures and codesharing among airlines to improve connectivity
The Philippines and Malaysia have updated their almost 50-year old air services agreement to boost airline competition and connectivity between the two countries.
The changes to the 1978 Air Services Agreement, which reflect developments in the aviation industry, were reached following bilateral negotiations held in Putrajaya on March 4-5, 2026, the Philippine Department of Transportation (DoTr) said in a press release.
The talks were held by delegations from DoTr and the Malaysia Ministry of Transport.
Under the revised framework, airline designation rules were updated in line with provisions of the Public Service Act. The changes recognize carriers based on their principal place of business rather than traditional ownership structures, a move expected to allow more airlines to operate routes between the two countries.
The DOTr said the adjustment would help enhance competition in the aviation market while giving travelers more flight options and potentially more competitive fares.
The agreement also broadens opportunities for commercial cooperation among airlines, including joint ventures and codesharing arrangements designed to create a more seamless travel experience for passengers.
DOTr said the renewed aviation partnership is expected to help drive tourism and economic activity while strengthening people-to-people ties between the two Southeast Asian nations.
The Philippine delegation was led by Jim Sydiongco, transportation undersecretary, and included Danjun Lucas, deputy director general for administration of the Civil Aviation Authority of the Philippines, and Carmelo Arcilla, executive director of the Civil Aeronautics Board.
