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Well, lets see.

Father-in-law of pilot is jailed. Pilot sends his wife and kids into hiding and hijacks the plane and is holding the passengers hostage in order to get his father-in-law released.

Malaysian government is in a tight spot and is trying to figure out how to save face. They have a no-win situation. They have two choices, neither of which are good:

1. Malaysia releases their political prisoner and have the plane and passengers show up and the whole world knows they’ve been bested, or

2. They don’t free their prisoner and the pilot lets the whole world know the passengers are being held hostage and it is all in the hands of the Malaysian government as to whether they will ever see their loved ones again. Malaysia will then be in the cross-hair of other countries, most notably China.