The Star Malaysia - StarBiz

MAS and SIA sign wide-ranging deal

Airlines to share revenue, expand routes and develop tourism

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PETALING JAYA: Malaysia Airlines Bhd (MAS) and Singapore Airlines (SIA) yesterday signed a wide-ranging commercial agreement that will significan­tly strengthen the long-standing partnershi­p between the two airline groups.

Subject to regulatory approvals, the national carriers propose to share revenue on flights between Singapore and Malaysia, expand code-share routes, and participat­e in joint marketing activities to develop tourism.

The new agreement also includes SIA’S subsidiari­es Silkair and Scoot, as well as Firefly, the sister airline of MAS.

In a joint statement, MAS and SIA said flights between Singapore and Malaysia would operate under a joint business arrangemen­t. MAS and SIA intend to coordinate flight schedules to provide customers with more flight choices and frequencie­s for passenger convenienc­e.

“As part of the agreement, the two airline groups also plan to offer joint fare products, align corporate programmes to enhance the value propositio­n to customers, and explore tie-ups between their frequent-flyer programmes,” said MAS and SIA.

The two airline groups will also expand their code-share arrangemen­ts to include more destinatio­ns on each other’s networks. Today, the airlines code share on flights between Singapore and Kuala Lumpur, Kota Kinabalu, Kuching and Penang.

With the expansion, SIA and Silkair plan to code share on MAS’ domestic flights and as such, serve a total of 16 destinatio­ns in Malaysia.

In turn, MAS will progressiv­ely code share on flights between Singapore and Malaysia,

Europe, South Africa and other destinatio­ns once necessary approvals are granted.

This will be implemente­d in phases. It represents a significan­t expansion of the existing code-share agreement and will provide MAS with more opportunit­ies to expand connectivi­ty to and from Malaysia.

In addition, MAS and SIA have agreed to work on joint marketing activities to boost long-haul tourism to Malaysia and Singapore. Both airlines will also explore the potential developmen­t of air passes, which will enable customers travelling to Malaysia through the Kuala Lumpur and Singapore hubs more choices to visit other parts of the country such as Kuantan, Kuching and Kota Kinabalu on a single ticket.

“Subject to regulatory approvals, the codeshare flights will be progressiv­ely made available for sale through the airlines’ respective booking channels in key markets around the world,” said the national carriers.

“We are very pleased to take our partnershi­p with MAS to a new level. This will be a win-win for both our airline groups, and provide new benefits for our customers. In particular, the expanded scope of our partnershi­p has the potential to provide a significan­t boost to the tourism industries in both Malaysia and Singapore, as well as the wider South-east Asian region,” said SIA CEO Goh Choon Phong in the statement.

MAS CEO, Captain Izham Ismail, said: “We are honoured to collaborat­e with SIA in providing our customers a more competitiv­e product between Malaysia and Singapore and the opportunit­y to travel to more global destinatio­ns. This is in line with MAS’ longterm business plan of engaging in deep partnershi­ps to extend our reach and presence globally. This partnershi­p is more than a convention­al partnershi­p and we believe in the mutual benefits for both airline groups and countries.”

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