Passengers traveling between the Philippines and Malaysia could soon see more flight options and improved connectivity after the two countries agreed to modernize their long-standing aviation agreement.

The Department of Transportation (DOTR) said on Saturday that the two countries concluded a two-day bilateral negotiation in Putrajaya to update the 1978 Air Services Agreement, reflecting current aviation and travel realities.

The revised deal introduces new airline designation rules under the Philippines’ Public Service Act, allowing airlines to be recognized based on their principal place of business rather than traditional ownership requirements.

The DOTR did not disclose the exact number of new flights or seats but said the updated framework could allow more airlines to operate between the two markets, increase competition, and improve connectivity through joint ventures and codesharing.

"Carriers are now recognized by their principal place of business rather than traditional ownership, allowing more airlines to operate routes between the two countries," the DOTR said.

"This is expected to enhance competition, providing travelers with greater options and more competitive fares," it added.

The Philippine delegation was led by Transportation Undersecretary Jim Sydiongco, joined by Civil Aviation Authority of the Philippines Deputy Director General for Administration Atty. Danjun Lucas and Civil Aeronautics Board Executive Director Atty. Carmelo Arcilla.