Malaysia Airlines (MH, Kuala Lumpur International) could partner Etihad Airways (EY, Abu Dhabi International) as part of a restructuring plan currently being developed by airline executives as well as Malaysian government officials. In its report, CAPA Centre for Aviation claims Malaysia Airlines has already informed fellow Oneworld members of its intentions concerning Etihad with talks between the two airlines already underway.

However, Etihad CEO James Hogan has rejected the reports as mere speculation adding that his airline is focused on its acquisition of Alitalia (AZA, Rome Fiumicino). Etihad currently owns equity stakes in Air Seychelles (HM, Mahé), Air Berlin (1991) (Berlin Tegel), Air Serbia (JU, Belgrade Nikola Tesla), Darwin Airline (Lugano), Aer Lingus (EI, Dublin International), Jet Airways (Mumbai International), and Virgin Australia (VA, Brisbane International).

While a partnership with the Emirati carrier could eventually entail the purchase of an equity stake, it is believed that a comprehensive codeshare partnership would likely be an initial first step. At present, the two airlines do codeshare albeit in a limited way on regional Malaysian flights as well as on flights throughout the Arabian Gulf.

"What will unfold in Malaysia over the next several months is hard to predict. Etihad may ultimately not be interested in investing in Malaysia Airlines, particularly if the government is reluctant to relinquish control or allow the deep restructuring the carrier will need to be viable over the long term," the CAPA report read.

Malaysia Airlines recorded a MYR443million (USD134 million) loss for the first quarter of its 2014/15 Financial Year exacerbated by the loss of its B777-200(ER), 9M-MRO (msn 28420), operating as flight MH370.