In a heated parliamentary debate on the Supply Bill 2026, two lawmakers from Parti Islam Se-Malaysia (PAS) proposed that Malaysia Airlines (MAS) eliminate alcoholic beverages from its flights, replacing them with traditional Malaysian drinks like cendol, sirap bandung, and ais batu campur (ABC).
The suggestion, framed as a way to promote local culture and align with Islamic principles, has drawn sharp criticism from Datuk Seri Wong Soon Koh, a senior leader of Gabungan Parti Sarawak (GPS) and Bawang Assan assemblyman, who called it “ignorant and short-sighted,” warning that it ignores the commercial realities of a multicultural nation and the fiercely competitive global aviation market.
Wong, a prominent voice in Sarawak’s Progressive Democratic Party within GPS, argued that Malaysia Airlines, which already adheres to halal meal standards and limits alcohol on domestic routes, relies heavily on premium services—including alcohol sales in business and first class—for international revenue. He cautioned that a blanket alcohol ban risks alienating a diverse customer base, including tourists and business travelers, potentially pushing MAS toward financial ruin.
Bawang Assan assemblyman Datuk Seri Wong Soon Koh says an opposition member of parliament’s (MP) call for the Transport Ministry to ban alcoholic beverages in Malaysia Airlines flights is ignorant and short-sighted.
He said Malaysia Airlines would immediately lose ground, particularly among business and international travellers, if it were to stop serving alcoholic beverages.
“This could reduce Malaysia Airlines’ appeal, hurt its revenue and further challenge its already weak financial position,” he said when commenting on the call by Pas Hulu Selangor MP Hasnizan Harun during the debate on the Supply Bill 2026 in Parliament yesterday.
He added that the airline was still struggling to recover, stating that it did not only earn revenue from Malaysians, but also from travellers around the world.
“We must remember that the airline has to compete with major carriers such as Singapore Airlines, Emirates Airlines and Qatar Airways.
“All of them provide full service hospitality, including alcoholic beverages,” he said.
Wong, who is also senior vice-president of Progressive Democratic Party (PDP), asked Hasnizan to stop playing religious politics.
“This is not a religious issue, it is about the Malaysian economy and survival,” he said.
Wong, who is also the former state second minister of finance, said if Pas truly wanted to be part of the Federal Government, it must first abandon religious politics, adding that was the clear bottom-line for all non-Muslims and for Sarawak.
IMalaysia Airlines, which already adheres to halal standards for meals and restricts alcohol on domestic flights, generates significant revenue from premium services on international routes, including alcohol sales in business and first class.
PAS’s Misguided Example: Citing Brunei’s Struggling Airline
During the debate, PAS MPs pointed to Royal Brunei Airlines (RBA)—a fully dry, Sharia-compliant carrier—as a model of success for MAS to emulate, praising its halal-focused operations and cultural alignment. However, this example falls flat under scrutiny. RBA, despite its awards for “Muslim-Friendly Airline of the Year” in 2024, has been plagued by financial woes that underscore the pitfalls of rigid dry policies in a competitive global market. Key pointers include:
- Massive Cumulative Losses: RBA reported a staggering BND 108 million (approximately USD 81 million) operating loss over just two years (2022-2023), highlighting chronic underperformance amid rising fuel costs and post-pandemic recovery challenges.
- Credit Downgrades and High Risk: The airline’s credit rating was downgraded to B3 (speculative grade) in 2022 due to elevated default probability peaking at 0.356 in late 2022; even after a partial rebound to B2 in 2024, default risk lingered at 0.153 as of August 2025, signaling ongoing instability.
- Route Cuts and Restructuring: In response to financial strain, RBA suspended long-haul services to cities like Auckland, Brisbane, and Perth in 2012, a move repeated in scaled-back operations post-2020, limiting growth and revenue potential.
- Government Bailouts as a Crutch: As a state-owned entity, RBA relies heavily on Bruneian subsidies, including BND 60 million allocated in the 2024/2025 budget for airport infrastructure—yet profitability remains elusive, mirroring the subsidy-dependent struggles of other dry flag carriers like PIA and Kuwait Airways.
By holding up RBA as an aspirational benchmark, PAS overlooks these red flags, potentially steering MAS toward similar fiscal turbulence.
The Sobering Statistics: Most Dry Airlines Are Drowning in Losses
To understand the potential risks, consider the global landscape of “dry” airlines—those that prohibit alcohol service due to cultural or religious policies. As of 2025, there are approximately 17 major non-alcoholic carriers worldwide, primarily from Muslim-majority countries.
These include Saudia, Air Arabia, Kuwait Airways, Royal Brunei Airlines, Pakistan International Airlines (PIA), and others like Iran Air and Biman Bangladesh Airlines.
According to recent financial analyses based on 2024 full-year results and 2025 projections, only 4 of these 17 are profitable, leaving 13 in the red—often with losses running into hundreds of millions, if not billions in local currencies. For instance:
- Pakistan International Airlines (PIA): Chronic losses exceeding PKR 100 billion (about USD 360 million) annually, exacerbated by debt and operational inefficiencies.
- Kuwait Airways: Reported losses of around USD 200 million in 2024, despite government subsidies.
- Iran Air and Mahan Air: Sanctions and geopolitical tensions have led to persistent deficits, with combined losses in the billions over recent years.
In contrast, the four profitable outliers—Air Arabia, Saudia, Flyadeal, and Jazeera Airways—benefit from low-cost models and niche markets, but even they face volatility from fuel prices and regional competition. The global airline industry posted USD 31.5 billion in net profits in 2024, but dry carriers represent a tiny, struggling fraction. Implementing a full alcohol ban could alienate international passengers and slash ancillary revenues, which for wet airlines (those serving alcohol) can add USD 5-10 per passenger on long-haul flights.
Lessons from Rayani Air: Malaysia’s Failed Dry Experiment
Malaysia has already tested the waters with a fully Sharia-compliant airline—and it sank fast. Rayani Air, launched in December 2015 as the country’s first alcohol-free carrier with halal meals, prayer calls, and modest crew uniforms, ceased operations after just four months.
The airline’s downfall was swift and multifaceted:
- Operational Blunders: Incidents included handwritten boarding passes due to system failures, raising security concerns, and a pilot reciting religious verses over the intercom, which alienated some passengers.
- Financial Woes: Lacking sufficient capital and management expertise, Rayani struggled with fleet maintenance and payments, leading to a pilots’ strike in April 2016—described by founders as “internal sabotage.”
- Regulatory Hammer: By June 2016, the Malaysian Aviation Commission revoked its license for breaching safety and administrative conditions.
Rayani’s brief existence highlights the challenges of imposing strict cultural policies on a competitive industry. While its dry policy wasn’t the sole cause, it limited appeal to a broader customer base, contributing to low load factors and ultimate failure.
Why Alcohol Matters to Airlines’ Bottom Line
Alcohol service isn’t just about indulgence; it’s a key revenue driver. Premium cabins, where champagne and wines flow freely, command higher fares and boost loyalty programs. For MAS, which has clawed back from near-bankruptcy post-MH370 and MH17 tragedies, alienating tourists and business travelers could reverse hard-won gains. As one critic noted, such a ban overlooks Malaysia’s secular identity and the economic imperatives of aviation.
IPAS’s push to replace alcohol with cendol may reflect cultural pride, but it flies in the face of economic reality. With 76% of non-alcoholic airlines bleeding billions and Rayani Air’s collapse as a warning, Wong Soon Koh’s critique rings true: such a move is not just shortsighted—it’s a potential death knell for Malaysia Airlines. The carrier must navigate the skies of a multicultural nation and global market with pragmatism, not idealism, to stay aloft.
Source : NST
