Alliance to boost MAS earnings (3786)

2013 TARGET: Induction into oneworld seen contributing RM317m in interlining passenger revenue


MALAYSIA Airlines (MAS) is eyeing an additional US$100 million (RM317 million) interlining passenger revenue a year through the induction of the national carrier into the oneworld alliance early next year.

Senior vice-president for international affairs, Germal Singh Khera, said the full-fledged premium carrier now registers RM750 million annual interlining passenger revenue.

"We are foreseeing the additional revenue to roll in as early as next year, with MAS completing all commercial agreements with all other members of the oneworld alliance.

"We are currently at the last lap of our project to synchronise our system to accommodate the oneworld alliance members to give our customers a better and holistic network coverage," he said at a media briefing yesterday.

Germal said MAS expects to conclude all work and officially join the alliance in the first quarter of next year.

"By September, we'll be able to finalise the official date for the joining. September is our cut-out date," he added.

Germal said MAS' inclusion into the oneworld alliance would also open up opportunities for the carrier to forge joint ventures in several initiatives with other airlines in the alliance.

Asked whether MAS would revisit the collaboration with Qantas Airways under oneworld alliance, he said: "Yes. It could be. It depends more on what we are looking at in the joint venture".

On commercial agreements, Germal said MAS already has a code-sharing arrangement with several airlines, but will work on negotiations more aggressively once the airline joins the oneworld alliance.

"One step is to join the alliance. The second is to have commercial airlines with the carrier.

"We've now started the process as we are now in negotiations with most of the oneworld member carriers. We're looking to accomplish the negotiations by the first quarter of next year," he said.

In a related development, oneworld's vice-president for corporate communications Michael Blunt said MAS will be the alliance's representative in Southeast Asia.

"We don't have a representative here. Southeast Asia is a place with many competitor airlines. As such, MAS' inclusion into oneworld will serve as the base for the region," he added.

Oneworld is one of the world's three largest global airline alliances, with its central management team, Oneworld Management Co, based in New York.

The alliance has an incomparable route network, covering more than 800 destinations in 150 countries, with MAS adding another 15 places and two countries upon joining the airline grouping next year.

The oneworld alliance brings together 11 of the biggest and best names in the global airline business and 20 affiliated carriers.

After MAS, the Sri Lankan Airlines will follow suit to be inducted into the alliance. Bernama