KLM, MAS set to enter partnership<\/p>\n
AMSTERDAM (Reuters): KLM Royal Dutch Airlines said yesterday
\nit expected to reach a code-sharing agreement soon with Malaysia
\nAirlines.<\/p>\n
The deal would be another link in KLM's Asia-Pacific chain,
\nincreasing its destinations in Australia and would offer Malaysia
\nAirlines an opening to more European cities.<\/p>\n
It would also open the prospect of Malaysian Airlines joining
\nKLM's partnerships with Northwest Airlines and Alitalia.<\/p>\n
The two airlines signed a memorandum of understanding in
\nDecember and will study code-sharing opportunities with a view to
\nconcluding a detailed agreement this spring. Code-sharing enables
\nairlines to sell seats on each other's flights.<\/p>\n
Initially at least, the agreement would not cover all routes
\noperated by the airlines.<\/p>\n
The two carriers intend to code-share on all their services
\nbetween Amsterdam and Kuala Lumpur. In addition, KLM said it had
\nexpressed an interest in code-sharing on services operated by
\nMalaysia Airlines between Kuala Lumpur and a number of Australian
\ndestinations, while the Malaysian carrier had said it wished to
\ncode-share on KLM's services between Amsterdam and other European
\ncities.<\/p>\n
The two airlines, which have operated joint cargo services
\nsince mid-1996, may also cooperate in ground handling, loyalty
\nprograms, marketing and sales.<\/p>\n
The deal would not be the first involvement of KLM in Asia,
\nbut would be its first code-sharing deal there. In October, KLM
\nreached agreement with Japan's third-ranked airline Japan Air
\nSystem to cooperate in marketing, airport and flight operations.
\nKLM also has ties with Indonesia's Garuda Airlines.<\/p>\n
In December, KLM managing director Leo van Wijk said the
\ncompany's priority in 1998 would be to find an Asian partner,
\nalthough yesterday a KLM spokeswoman said the company was not
\nlooking for a single Asian carrier.<\/p>",
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