Malaysia Airlines seeks code-share pact Mint

19 Jan 2024

Livemint

Malaysia Airlines seeks codeshare pact Mint

Malaysia Airlines is seeking a partnership with an Indian carrier to increase its presence in the Indian aviation market, with the airline ready to work with either a full-service or low-cost carrier.

New Delhi: Malaysia Airlines is in talks with an Indian carrier for a potential partnership to increase its reach in the world’s third-largest aviation market, a top company official said, even as he lauded New Delhi’s decision of not giving any more flying rights to foreign carriers to boost its own players.

“I applaud [Indian government’s move to restrict any increase in foreign flying rights]. And whatever the Indian government is doing is good for the aviation companies in India," Izham Ismail, group managing director, Malaysia Aviation Group, told Mint in an interview.

This makes Ismail the first and only foreign airline boss to have spoken in favour of the Indian government’s stance to not increase foreign flying rights, or bilateral rights, with countries that are aviation hubs with a strong airline. A list of such countries includes Dubai, Qatar, Singapore, and Turkey.

Interestingly, Malaysia is also seeking an increase in foreign flying rights since the Malaysian carriers—Air Asia, Malaysia Airlines, and Malindo Air—have exhausted their share of the bilateral rights and are seeking an increase, which was last raised in 2012.

The Indian government’s stance on restricting bilaterals has also divided the airline industry between foreign and domestic carriers, who support the government’s stance on restricting bilaterals foreign flying rights.

“So, how does Malaysia Airlines circumnavigate this bilateral shortage...We are speaking to an Indian airline for a code-share partnership...and the name could be announced in a few weeks. I, however, cannot share the name of the airline," he said.

Ismail said the airline is ready to get into a partnership with both a full-service or a low-cost airline.

“At this current time, we are agnostic for the Indian market—whether it is a full-service or a low-cost carrier. Because there is diversity in India. There is a leisure and corporate market as well as labour traffic out of India. It’s a well-diversified market. So, we are quite agnostic," Ismail said.

For context, Malaysia Airlines is a full-service carrier, and Air India and IndiGo are the only two large airlines in India.

If Malaysia Airlines announces a code-share partnership with a low-cost carrier, it would not be a first for the Indian market, as IndiGo already has an extensive agreement with Turkish Airlines, which is a full-service carrier.

With the partnership, the airline plans to tap the passenger market in the east and north-east of India.

Ismail explained that this is part of the airline’s strategy to become a network carrier, focusing mainly on the international market and developing Kuala Lumpur as an aviation hub. He said the airline’s international revenue contribution to the total revenue has increased to 90% during the past 30 months. This used to be in the range of 65% earlier.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!