Philippines and Malaysia updates bilateral air services agreement

The Philippines and Malaysia have agreed to update the existing aviation partnership between the two ASEAN countries which will allow airlines to be recognized by their principal place of business, and expand commercial cooperation paving the way for more joint ventures and codeshare partnerships.

Following a two-day bilateral negotiation held in Putrajaya, Malaysia on March 4-5, 2026, the Philippines and Malaysia will update the 1978 Air Services Agreement which the Civil Aviation Authority of the Philippines (CAAP) stated reflects contemporary travel realities.

Under the updated agreement, airlines are now recognized by their principal place of business rather than traditional ownership which will allow more airlines to operate routes between the two countries.

“This is expected to enhance competition, providing travelers with greater options and more competitive fares,” the CAAP said in a statement.

The agreement also expands commercial cooperation, promoting joint ventures and codesharing to create a more seamless travel experience.

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