So really what we're going to see is one airline based in KL, rather than two? Seems pretty stupid to me for MH to be a part of a JV with QF and do their own thing on the side. We've seen stranger things from MH though, so I guess it's possible...

Wouldn't this mean TWO 'premium airlines' based in KL, the MAS regional one and Red Q as well? Sounds a bit strange. Can't agree with QF that Red Q would complement the new MAS airline, which I read would be called Sapphire, are 'premium' customers like business travellers really going to want to fly from Australia into KL and then change to another aircraft to get to China or Indonesia? They're exactly the sort of people who would rather fly direct, not waste a few hours in transit. It's starting to sound like Qantas will get its reason to cancel or at least 'delay' Red Q after all, they can blame MAS as well as the global economy!

I do not understand why MAS need to have all business class flights. MAS need to look at Malaysian demographics of business travellers and it is not a huge financial hub compare to Hong Kong or Singapore. Not yet anyway. Great to have connection for Australian business travellers connecting in KL but just fill the MAS business class seats instead of a new premium airline. I suggest Qantas to focus on plying codeshare routes with MAS since they do not have direct flights to KL and ply codeshare beyond KL onwards to get the load factor needed to make the route profitable and not waste the empty seats. Eventually increase frequencies and then Qantas can consider opening their own routes to KL.

MAS should just stick to their operations and work on route, marketing, aircraft procurement, pricing strategies, and to get their planes to more than 80% load factor which is lacking compare to Singapore Airlines who seem to be able to fill their planes.