The woman, who was traveling from Kuala Lumpur, Malaysia to Paris, told French police she was sexually assaulted when she expressed nervousness over flying after the airline's recent spate of deadly disasters.
She said the flight attended assaulted her under the pretext of offering comfort while sitting next to her during the flight. The crew member was detained by French police for questioning upon arrival at Charles de Gualle airport.
Malaysia Airlines, which has been struggling after its flight MH370 vanished en route to Beijing in March and then in July its flight MH17 was shot down while flying over eastern Ukraine, confirmed that an investigation is underway.
"Malaysia Airlines can confirm that following allegations by a passenger traveling on flight MH20 from Kuala Lumpur to Paris on 4th August 2014 of inappropriate sexual behavior by a member of the cabin crew," the statement said.
"Malaysia Airlines expects and accepts nothing short of the highest standards of conduct from its crew and takes any such allegations very seriously. We will naturally assist the French authorities as they conduct their investigation and would stress that the safety, comfort and well-being of our passengers is always our highest priority."