AirAsia and long-haul sister carrier AirAsia X (AAX) have signed a profit-sharing agreement for flights between Kuala Lumpur and Singapore, effective 10 November.
Under the agreement, AirAsia X will share with AirAsia 50% of net operating profit from the twice-daily service it operates, using slots that were transferred from AirAsia. The agreement will last for a year, with an option to extend by another year, AirAsia says in a Bursa Malaysia disclosure.
If the agreement is not extended, the route does not meet "mutually agreed expectations," or should AAX cease the service, the slots will be returned to AirAsia, subject to regulatory approvals.
AirAsia states that the transaction will allow it to "heighten the fly-thru" transfer service it operates. It notes that this service has remained stagnant since 2017, and the airline will benefit from additional capacity of the route, as AirAsia X is deploying Airbus A330-300s to Singapore.
Earlier this month, AirAsia told Cirium that AirAsia X is taking over two daily flights it previously operated "due to high demand."
Cirium schedules data shows that both carriers operate a total of 73 flights between Kuala Lumpur and Singapore each week, of which 59 are flown by AirAsia.