MALAYSIA Airlines and India’s Jet Airways sealed a code sharing pact today to boost travel and increase revenue as they battle a global industry downturn.
Malaysia Airlines managing director Idris Jala warned of a “very tough” year as the world economic slump depresses the airline industry and raises the need for carriers to work together.
Under the agreement, the two airlines will be able to book passengers on one another’s planes between Kuala Lumpur and Chennai from March 3, he said. Jet Airways will also place its flight code on Malaysia Airlines flights operating between Kuala Lumpur and four other Indian cities – Mumbai, New Delhi, Bangalore and Hyderabad, he said.
Code-sharing is considered a low-risk way for airlines to expand their networks without the added cost of more planes and employees.
“This will allow us to capture untapped traffic from secondary points in India through the five Indian gateways onto Malaysia Airline’s network,” Idris said at a ceremony to mark the agreement.
He said the flag carrier earned some 680 million ringgit each year ($189m/£127m) from inter-airline agreements including code sharing, and the pact with Jet Airways could add up to 40 million ringgit ($11m/£7.7m) to its bottomline.
Jet Airways chairman Naresh Goyal said customers will enjoy a wider choice of flights and convenient connections in Malaysia and India.
He said the carrier, which currently only flies the Kuala Lumpur-Chennai route, hopes to expand its network in the region and aims to make Kuala Lumpur its Southeast Asian hub in the longer run.
Jet Airways has cut capacity and leased out its larger planes to cut operational costs, he said. It has also reduced fares following the sharp drop in jet fuel prices but high domestic taxes in India remained an obstacle, he said.
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