KLM, MAS set to enter partnership

KLM, MAS set to enter partnership

AMSTERDAM (Reuters): KLM Royal Dutch Airlines said yesterday it expected to reach a code-sharing agreement soon with Malaysia Airlines.

The deal would be another link in KLM's Asia-Pacific chain, increasing its destinations in Australia and would offer Malaysia Airlines an opening to more European cities.

It would also open the prospect of Malaysian Airlines joining KLM's partnerships with Northwest Airlines and Alitalia.

The two airlines signed a memorandum of understanding in December and will study code-sharing opportunities with a view to concluding a detailed agreement this spring. Code-sharing enables airlines to sell seats on each other's flights.

Initially at least, the agreement would not cover all routes operated by the airlines.

The two carriers intend to code-share on all their services between Amsterdam and Kuala Lumpur. In addition, KLM said it had expressed an interest in code-sharing on services operated by Malaysia Airlines between Kuala Lumpur and a number of Australian destinations, while the Malaysian carrier had said it wished to code-share on KLM's services between Amsterdam and other European cities.

The two airlines, which have operated joint cargo services since mid-1996, may also cooperate in ground handling, loyalty programs, marketing and sales.

The deal would not be the first involvement of KLM in Asia, but would be its first code-sharing deal there. In October, KLM reached agreement with Japan's third-ranked airline Japan Air System to cooperate in marketing, airport and flight operations. KLM also has ties with Indonesia's Garuda Airlines.

In December, KLM managing director Leo van Wijk said the company's priority in 1998 would be to find an Asian partner, although yesterday a KLM spokeswoman said the company was not looking for a single Asian carrier.