Airlines India, Indian Airlines

Gulf Air and Malaysia Airlines entered a code-sharing agreement opening up routes and services to each other in their respective networks effective September 18.

The agreement allows Malaysia Airlines to market seats under its code on Gulf Air flights between Kuala Lumpur bound for Bahrain and Oman.

“Code-sharing enables travellers to enjoy a seamless product, as a single airline supervises the passenger’s entire journey,” says Gulf Air President and chief executive James Hogan.

According to Malaysian officials, around 147,646 Gulf tourists visited Malaysia last year, up from 123,000 in 2004.

The possibility that budget carriers will be able to fly the Singapore-Kuala Lumpur air route has moved one step closer to reality.

This was after Malaysian Transport Minister Chan Kong Choy announced that a committee had been set up to study the opening of this route to budget airlines of both countries.

It is expected to come up with recommendations in the next few weeks.

According to a Bernama report, the minister said the committee would also examine the possibility of implementing the ASEAN Open Skies Agreement with Singapore and other ASEAN countries earlier than the 2008 deadline.

The aviation industry has been abuzz with the possibility that one of Asia’s busiest and lucrative routes will be opened up to budget carriers.

Both Singapore’s Tiger Airways and Malaysia’s AirAsia have been reported to be interested in operating this route, as it is one of Asia’s busiest and lucrative routes.

Singapore’s other budget carrier, Jetstar, told Channel NewsAsia that it has expressed its desire to fly this route to the CAAS.

Currently, Singapore Airlines and Malaysian Airlines operate some 200 flights weekly under a 34-year-old bilateral air services agreement between the two countries.

Fares can go up to a high of more than S$300, before taxes.

Singapore is keen to expand the existing Air Service Agreement (ASA) it signed with Malaysia to allow more carriers and flights to be operated by both sides, an official said.

The last time the ASA was expanded was in 1980 and since then all air traffic rights for the Singapore-Kuala Lumpur sector have been used up, said the Ministry of Transport’s Air Transportation Division Director Lee Ark Boon.

“Consequently, new Singapore and Malaysian carriers are unable to enter the market,” he said in a letter published in The Straits Times Saturday.

Lee said: “Singapore would like to expand the ASA to allow more carriers and flights by both sides but this requires the agreement of the Malaysian Government. Singapore looks forward to meeting Malaysia to discuss the expansion of the ASA as soon as Malaysia is ready,” he said.

Lee wrote the letter to clarify a report here which stated that the ASA between the two countries prevents any changes being made unless they are approved by Singapore Airlines and Malaysia Airlines.

Lee said the Malaysia-Singapore ASA did not have any clause stating that changes to the agreement must be approved by the airlines concerned.

“The Singapore-Malaysia ASA is a government-to-government agreement. Any changes are to be negotiated and mutually agreed upon by both governments,” he said, adding that Singapore welcomed more carriers from both countries to operate services and improve air links between Singapore and Malaysia.

The ASA issue came to light here and in Malaysia recently after budget airlines from both sides of the causeway — Malaysia’s AirAsia and Singapore’s Tiger Airways — were reported to be keen to operate in the lucrative Singapore-Kuala Lumpur route, currently duopolised by Singapore Airlines and Malaysia Airlines.

The report fuelled market talks of an open skies pact between both countries which some analysts say would not provide a balance of benefits because it would give Singapore carriers access to Malaysia’s domestic destinations while Malaysian carriers only have one destination to fly to in Singapore.

Air Asia Group Chief Executive Officer Datuk Tony Fernandes has refuted talks, saying although Singapore was one of the many routes the airline was interested in, the island state was not a priority destination.

The Malaysian Airlines (MAS) has increased its Kuala Lumpur-Brunei Darussalam flight frequency from twice weekly to thrice weekly, following the launch of its new Wednesday flight yesterday.

Malaysian High Commissioner in Brunei Darussalam Datuk Ali bin Abdullah, in his speech during the ceremony, said the additional flight to the country will provide more choices for passengers and foster closer ties between Brunei and Malaysia while supporting the call made by His Majesty the Sultan’s to boost local tourism.

MAS area manager Yuzer Yusof added that the company is not affected by budget airlines. With the lowest capacity at 90 per cent, MAS proves to be a force to be reckoned with.

Meanwhile, Malaysian Tourism representative Efarina A. Rahman said locals who consider vacationing in Kuala Lumpur should do so now amid the current mega sale across the city.

In conjunction with the new Wednesday service, MAS is offering $118 return fare to Kuala Lumpur until November 30.

Meanwhile, a ceremony was held yesterday at Brunei International Airport to see off passengers of the new MAS service.

On hand to bid the passengers farewell were Malaysian High Commissioner Datuk Ali, Efarina A. Rahman, Yuzer Yusof and Civil Aviation director Pg A Rahman Ismail as well as MAS officers dressed in Malaysian ethnic attire.

Gulf Air and Malaysia Airlines entered a code-sharing agreement today opening up routes and services to each other in their respective networks effective September 18th 2006.

The agreement, inked at a signing ceremony in Subang, allows Malaysia Airlines to market seats under its code on Gulf Air flights between Kuala Lumpur and the Middle East countries of Bahrain and Oman as part of its “hub-and-spoke” strategy.

“We are delighted with this tie up as Gulf Air believes in choosing and cooperating via code-sharing with world class leading carriers such as Malaysia Airlines,” said Gulf Air President and Chief Executive Mr James Hogan.

“Code-sharing enables travellers to enjoy a seamless product, as a single airline supervises the passenger’s entire journey. Such an arrangement offers significant economic and consumer benefits giving passengers price and service options,” he added.

Malaysia Airlines Managing Director and Chief Executive Officer, Mr Idris Jala said, “We are very excited with this Gulf Air partnership. This is in line with our strategy of shifting from point-to-point network to hub-and-spoke connecting network. We are currently in discussions with other airlines to develop hub-and-spoke network in Australia, South Africa, China, Europe and USA. We will be announcing some of these deals this year”.

“Malaysia is a popular destination for visitors from the Middle East. With a steady increase in tourist arrivals over the years from the Gulf Cooperation Council (GCC) countries, we expect a significant jump in the numbers from that region during Visit Malaysia Year 2007”, Idris said.

“This agreement is yet another manifestation of the ‘Winning Coalitions’ thrust of our Business Turnaround Plan. We will leverage on such arrangements to build out our hub-and-spoke approach to reduce costs and concurrently improve both load factors and yields,” he added.

The code share comes shortly after a meeting between Mr Idris Jala and Mr James Hogan in June 2006. It was complemented by a series of meetings between both parties. There were also discussions involving Gulf Air and high-level delegation from Malaysian Tourism Promotion Board (MTPB). During that meeting, both parties agreed to set up a task force to study possibilities of joint co-operation to promote the upcoming 50 years of Malaysia’s nationhood in 2007.

Gulf Air has been flying to Kuala Lumpur for many years and its Holiday Division, Gulf Air Holidays, has been offering travellers fantastic, value-for-money holiday packages. During the summer, Gulf Air operates 6 flights a week to Kuala Lumpur. Later this year Gulf Air and Malaysia Airlines will expand the commercial relationship further, with Gulf Air adding its code on some routes of Malaysia Airlines domestic and international network. The pact also includes initiating cooperation in Frequent Flyer, Holiday and Cargo programmes.

Malaysia Airlines currently operates flights between Kuala Lumpur and the Middle East cities of Dubai, Jeddah, Cairo, Damascus and Istanbul. It holds a lengthy record of service and best practices excellence, having received more than 100 awards in the last 10 years, among the notable ones being the first airline to win the “World’s Best Cabin Crew” by Skytrax UK consecutively from 2001 till 2004 and being rated “5-star airline” also by Skytrax, UK.