Singapore Airlines and Malaysia Airlines Bhd. (MAB) signed on Wednesday a wide-ranging deal to significantly expand regional and long-haul codeshare routes and for revenue sharing on flights between Singapore and Malaysia, the Singapore carrier said.
The two carriers will also engage in joint marketing initiatives to develop tourism, SIA said in a release published to its website.
The deal, which follows a memorandum of understanding signed in June, will also include SIA’s subsidiaries SilkAir and Scoot and MAB’s sister airline, Firefly, the statement said.
“We are very pleased to take our partnership with Malaysia Airlines to a new level. This will be a win-win for both our airline groups, and provide new benefits for our customers,” Goh Choon Phong, CEO of SIA, said in the statement. “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 Southeast Asia region.”
Under the agreement, flights between Singapore and Malaysia will operate under a joint business arrangement, and flight schedules will be coordinated to offer more flight choices and frequencies, SIA said.
In addition, the two carriers plan to offer joint fare products, align their corporate programs and explore tie-ups between their frequent-flyer programs, the statement said.
The codeshare agreements will also be expanded to more destinations on each other’s networks, from the current flights between Singapore and Kuala Lumpur, Kota Kinabalu, Kuching and Penang, the statement said. With the expansion, SIA and SilkAir plan to codeshare on MAB’s domestic flights and service a total of 16 destinations in Malaysia, it added.
In addition, MAB will codeshare on flights between Singapore and Malaysia, Europe, South Africa and other destinations, with implementation in phases, the carrier said, adding this was a “significant expansion” of the existing agreement and would allow MAB to expand connectivity to and from Malaysia.
Both carriers will explore offering airpasses to enable customers travelling to Malaysia through Kuala Lumpur and Singapore more choices to visit other parts of the country via multi-stop itineraries, the statement said.
MAB CEO Captain Izham Ismail said the deal would provide his carrier’s customers a more competitive product between Malaysia and Singapore as well as more global destinations.
“This is in line with Malaysia Airlines’ long-term business plan goal 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,” he added.
The deal is subject to regulatory approvals from competition authorities, SIA said.