SINGAPORE - Singapore Airlines (SIA) and Malaysia Airlines (MAS) have signed a memorandum of understanding (MOU) to step up cooperative ties, the two airlines announced in a joint statement on Thursday (June 27).

The MOU will see the two airline groups building on their existing code-share agreement which covers flights between Singapore and Malaysia.

A code-share agreement means that airlines can sell seats on each others’ flights in order to provide passengers with a wider choice of destinations.

Enhanced ties could see an expansion of code-share flights beyond the existing routes, and involve cargo, maintenance, repair and overhaul services.

A formal agreement will be finalised in the coming months and will include SIA subsidiaries SilkAir and Scoot, as well as MAS sister airline Firefly.

Noting that both airlines have extensive operations in the Asean region and also large networks that cover many areas worldwide, SIA chief executive officer Goh Choon Phong said: “We are proud to announce this MOU to expand the scope of our cooperation, increase global connectivity for Malaysia and Singapore, and enhance our service offerings for our customers.”

MAS group chief executive officer, Captain Izham Ismail, said the agreement would be a first in involving the subsidiaries of the two airlines, and agreed that it would add more value for customers.

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He added: “Malaysia Airlines has always historically had strong commercial and cultural links with Singapore Airlines.

“My team and I are extremely pleased to be able to build on that close relationship even further, this time across many areas of both airlines’ ecosystems.”