KLM Royal Dutch Airlines and Malaysia Airlines (MAS) intend to intensify 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 KLM President & CEO Leo van Wijk and MAS Managing Director Dato’ Md Nor Md Yusof in Kuala Lumpur on June 16.

KLM and MAS will combine their marketing, sales and distribution activities, starting with those pertinent to their codeshare flights between their Amsterdam and Kuala Lumpur hubs. Subject to approval of concerned authorities, the two carriers intend to work towards a full joint venture, sharing all costs and revenues ensuing from codeshare services. KLM and Northwest Airlines have, for some time, successfully maintained a similar joint-venture structure for their transatlantic services.

Northwest and other partner airlines will be involved in the cooperative venture that KLM and MAS have agreed on now.

The new agreement between KLM and MAS 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 staff and management exchange.

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

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

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