Cathay Pacific is discontinuing Hong Kong-Kuala Lumpur flights and handing over the route to regional subsidiary Dragonair.
Dragonair, which will be rebranded as CathayDragon in November, will take over the route from March 2017.
It will start with one daily flight and progressively increase to four flights daily by May 2017.
Cathay is also transferring five Airbus A330 jets to the Dragonair fleet.
Kuala Lumpur will become Dragonair’s third destination in Malaysia, after Penang and Kota Kinabalu.
Once the KL route takes off, Dragonair will then operate 44 weekly flights to Malaysia.
"This is part of our overall growth strategy for the Group. The aircraft transfer will also help to optimise the Group’s training abilities. We continually review the expansion and growth plans for both Cathay Pacific and Dragonair," said Paul Loo, Cathay Group director of corporate development & IT.
"The Cathay Pacific Group of airlines remains committed to grow with the Malaysian market, and will continue to provide the same high level of product and service to our customers travelling to and from Malaysia."
