Singapore Airlines (SIA) and Malaysia Airlines Berhad (MAB) have extended their partnership by reaching a new commercial agreement.

Under the new deal, which is yet to be approved by competition authorities, the two airline operators seek revenue sharing on flights between their countries.

A joint business arrangement will be established to allow flights between the two nations with coordinated flight schedules.

Plans to provide joint fare products, align corporate programmes and combine their frequent-flyer programmes are also being considered by the companies.

This agreement is a follow-up to a memorandum of understanding signed in June.

SIA’s subsidiaries SilkAir and Scoot, as well as MAB’s sister airline Firefly, are also part of the agreement.

The parties also plan to expand regional and long-haul codeshare routes. Codeshare arrangements are currently in place on flights between Singapore and Kuala Lumpur, Kota Kinabalu, Kuching and Penang.

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As part of this, SIA and SilkAir plan to include domestic MAB flights in the arrangement.

If approved by the authorities, codeshare on flights between Singapore and Malaysia, Europe, South Africa will be carried out in phases.

SIA CEO Goh Choon Phong said: “We are very pleased to take our partnership with Malaysia Airlines to a new level. This will be a win-win for both our airline groups and provide new benefits for our customers.

“In particular, the expanded scope of our partnership has the potential to provide a significant boost to the tourism industries in both Malaysia and Singapore, as well as the wider South-East Asia region.”

Furthermore, the partnership will also focus on joint marketing activities to boost tourism in the two countries.