- The Straits Times
Just four months after announcing an MOU to expand their code-share arrangement, Singapore Airlines (SIA) and Malaysia Airlines Berhad (MAB) have revealed plans to share revenue on flights between Singapore and Malaysia.
The agreement signed on October 30 also includes SIA subsidiaries SilkAir and Scoot, as well as Firefly, the sister airline of MAB.
As part of the agreement, which is still subject to approval from competition authorities, the carriers will expand their code-share routes to include more destinations on each other’s networks, and participate in joint marketing activities to develop tourism in each other’s homecountries.
The airlines already operate 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 MAB’s domestic flights so that the two Singapore carriers will serve a total of 16 destinations in Malaysia, the companies said in a joint statement.
In turn, MAB will progressively code-share on flights between Singapore and Malaysia, Europe, South Africa and other destinations, giving MAB more opportunities to expand connectivity to and from Malaysia. Once approved, this will be implemented in phases, the statement said.
If approved, the airlines intend to coordinate flight schedules to provide customers with more flight choices and increased frequency.
They will also offer joint fare products, align corporate programmes to enhance the value proposition to customers, and explore tie-ups between their frequent-flyer programmes.
If all goes to plan, the airlines will also explore the potential development of airpasses, which will enable customers travelling to Malaysia through Kuala Lumpur and Singapore “more choices” to visit other parts of the country on a single ticket.
The airlines did not specify the details these airpasses would entail, but said that travellers can expect a “seamless experience of convenience and flexibility while enjoying multi-stop itineraries”.
“This will be a win-win for both our airline groups, and provide new benefits for our customers, SIA CEO, Goh Choon Phong said.
“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,” he added.
MAB CEO, Captain Izham Ismail said the agreement would provide customers with a “more competitive product between Malaysia and Singapore and the opportunity to travel to more global destinations”.
“This partnership is more than a conventional partnership and we believe in the mutual benefits for both airline groups and countries,” he said.
Earlier this year, SIA came in second on a Skytrax ranking of the world’s best airlines. MAB came in 36th place.
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