Singapore Airlines and Malaysia Airlines plan to pursue a strategic partnership, leading to speculation it could pave the way to becoming a single airline entity once again.
Malaysia-Singapore Airlines was once a single airline business and split into two national carriers in 1972.
The two airlines signed a preliminary agreement that will include close cooperation across may business areas including maintenance and cargo operations.
It would comprise ‘a significant expansion of codeshare flights beyond Singapore-Malaysia routes, as well as enhancements on the frequent flyer programme’, a joint statement said.
The business cooperation would include MAS subsidiary FireFly, as well as SIA’s Silkair and Scoot.
The airlines are working toward sealing a formal agreement to be finalised in the coming months, pending regulatory approvals.
Prime Minister Mahathir Mohamad has already indicated that the government is open to selling off Malaysia Airlines which has been struggling for years.
Operationally, a close tie-up makes sense for both airlines, but would be a political hot potato in Malaysia if it were to eventually lead to MAS being swallowed up by Singapore Airlines.
Since Singapore left the old Malaya Federation in the 1960s, the relationship between two countries has been strained at times.
