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SIA sees upside in tie-up with Malaysia Airlines

Singapore Airlines (SIA) sees potential in its commercial tie-up with Malaysia Airlines, having signed a wide-ranging commercial agreement in October.

The collaboration will allow both airlines to offer a joint product to the market while providing greater connectivity options for travel to and from Malaysia, SIA's group chief executive Goh Choon Phong said at its half-year results briefing on 6 November.

He pointed out that this tie-up is different from its Star Alliance partnership with carriers such as Air New Zealand, the Lufthansa Group of carriers, and Scandinavian airline SAS, as well as Virgin Australia, noting that the relationship with these airlines covers long-haul operations.

Goh did not specify the exact time frame the commercial partnership with Malaysia Airlines will secure regulatory approval, noting that "it does take some [time to] process."

"But I would say that typically in such arrangements, it could take anything up to 9-12 months to get all the necessary approvals, because it is likely that regulators would go to the market and ask for comments."

Singapore Airlines and Malaysia Airlines signed a wide-ranging commercial agreement at the end of October that includes revenue sharing and expanded codeshares, building on a memorandum of understanding signed in June.

In the June agreement, both airlines indicated that other potential areas of collaboration could include cargo and MRO services.

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