Briefs

Singapore Airlines and Malaysia Airlines, which already have a code-sharing agreement for flights between both countries, have signed a memorandum of understanding to expand areas of cooperation. It includes code-sharing for flights outside Singapore and Malaysia, cargo, maintenance, repair and over-haul services. A formal agreement is expected to be formalised in the coming months. The plan would require regulatory approvals as well. In May, Maybank Kim Eng analyst Mohshin Aziz said both airlines should consider a merger if they wanted to improve their earnings. “A merger between them will see a lot of improvements in terms of scheduling. Besides, relocation of assets can also be optimised,” he said. However, the brokerage quickly disavowed his comments, claiming that the merger suggestion was not the house view and was merely Mohshin’s opinion. Both flag carriers can trace their roots to the same entity half a century ago.