KLM AND MALAYSIA AIRLINES WORKING TOWARDS ALLIANCE

Malaysia Airlines (MAS) and KLM Royal Dutch Airlines (KLM) intend to intensify their cooperation in phases during the coming years, working towards an alliance on the basis of exclusivity. An Alliance Coordination Agreement to this effect was signed by MAS Managing Director Dato’ Md Nor Md Yusof and KLM President & CEO Leo van Wijk in Kuala Lumpur today.

MAS and KLM will align their marketing, sales and distribution activities, starting with those pertinent to their codeshare flights between their Kuala Lumpur and Amsterdam hubs. The two carriers intend to work towards a joint venture on the Kuala Lumpur- Amsterdam route, sharing costs and revenues. KLM and Northwest Airlines have already for some time, successfully maintained a joint-venture structure for their transatlantic services.

Partner airlines of MAS and KLM will be involved in the intensified cooperation that MAS and KLM have agreed upon.

The new agreement between MAS and KLM presents an opportunity to pursue phased expansion of codeshare services and to explore further alignment of passenger products and schedules (seamless services); expanding the sharing of cargo capacity, distribution, sales and services; reservation and distribution systems; revenue management; marketing and sales; e-commerce and IT; ground handling; purchasing; catering and engineering & maintenance. The agreement also presents the possibility of exchange of know-how and staff.

The two carriers currently operate codeshare services between Kuala Lumpur and Amsterdam and beyond these hubs to Australia/New Zealand and Scandinavia/Finland. They have also linked their loyalty programs Flying Dutchman/WorldPerks (KLM-Northwest) and Enrich (MAS) to full reciprocity of benefits and made their lounges mutually accessible.

MASkargo and KLMCargo currently share capacity and will closely coordinate their full freighter and combi operations. Additionally, they wish to further develop their cargo hubs in Kuala Lumpur, Penang and Amsterdam and build regional feeder networks to and from these hubs.

The new agreement allows the two partner airlines to further develop and optimize the full growth potential of their home hubs Kuala Lumpur International Airport and Amsterdam Airport Schiphol. Both airports with state-of-the-art facilities are the most modern in their respective regions to best serve passengers and cargo customers.