Malaysia Airlines jumps on KLM cooperation plans
Malaysia Airlines' (MAS) shares jumped 5.4% yesterday as the carrier announced it is exploring closer links with KLM, including cooperation in scheduling and cost reduction.
- Malaysia Airlines is exploring closer links with KLM, including cooperation in scheduling and cost reduction.
- The partnership aims to provide greater connectivity, better schedules, and enhanced products for customers.
- Malaysia Airlines and KLM operate daily Amsterdam-Kuala Lumpur services.
- KLM sees this partnership as an opportunity to expand its Australasian destinations.
- Malaysia Airlines aims to participate in a global alliance in the future.
- As a result of this announcement, Malaysia Airlines' shares rose while AirAsia's shares fell.
MAS CEO Tengku Datuk Seri Azmil Zahruddin stated: "Through this, our customers can benefit with greater connectivity, better schedules and enhanced products. With closer links, we will also be able to keep costs down. This will then enable us to pass on the benefits to our customers." Malaysia Airlines and KLM operate daily Amsterdam-Kuala Lumpur services.
KLM's Chief Executive, Peter Hartman, stated the partnership was an ideal opportunity to expand the number of Australasian destinations that KLM offers to its customers.
KLM is a member of the SkyTeam Alliance. Malaysia Airlines aims to participate in a global alliance in the future.
Malaysia Airlines' rival, AirAsia fell 5.6% yesterday.
Asia Pacific selected airlines daily share price movements (% change): 23-Dec-2010
Source: Centre for Asia Pacific Aviation, Reuters & Financial Times