MAS, JAL sign MoU to pursue joint business agreement

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PETALING JAYA: Malaysia Airlines Bhd and Japan Airlines (JAL) have inked a memorandum of understanding (MoU) to pursue a joint business agreement with a view to enhance the quality of services, exchange best practices and potentially collaborate in areas such as cargo and tourism.

The airlines said in a joint statement that both parties will enhance the quality of services on the Malaysia-Japan route besides jointly developing tourism in both markets.

For Malaysia Airlines, the MoU marks a “new chapter’’ as the company plans to provide more value to its customers and hope for better loads. Experts believed that the local carrier can do with a strong ally amid competitive pressures in most markets it operates in.

Airlines globally are seeking alliances and collaboration to save cost. Since it is still at an MoU stage, Malaysia Airlines should explore collaboration for flights beyond Malaysia-Japan with JAL to especially the Americas.

This will provide a “solid link” into the Americans since JAL has daily flights into parts of the Americas.

“It is also a good idea that they want to cooperate on a wider scale and exchange their best practices. JAL faced turbulent times some years ago but it managed to turn around. There are a lot of valuable lessons from that as to how it managed to bring down its cost which Malaysia Airlines can adopt,’’ said an expert.

Malaysia Airlines group CEO Captain Izham Ismail said “the start of this joint business between Malaysia Airlines and JAL is an important milestone of our Long Term Business Plan which looks to explore more strategic opportunities as well as deepen more partnerships.’’

JAL president Yuji Akasaka adds that “we are delighted to announce our partnership with Malaysia Airlines as we look to bring more benefits, more choices, and more value to our customers.

“It is an honour to deepen the relationship with a partner that places hospitality at its core, where we look to provide a comfortable travel experience for our mutual customers.’’

Akasaka adds that “this partnership can potentially increase passenger traffic between the two countries and open up commercial opportunities.’’

This joint business agreement goes beyond the code share arrangements they have since 2012 when Malaysia Airlines became a oneworld alliance member.

They plan to start the joint business in 2020 to coincide with Tokyo Olympics, pending approvals from relevant authorities.

Both airlines are seeking waivers from their respective regulators in Malaysia and Japan for antitrust immunity to promote fair competition and deals to benefit consumers

By capacity on the Malaysia-Japan route, AirAsia X is in top spot offering over 70,000 seats, followed by Malaysia Airlines with over 50,000. JAL is in fourth place with close to 12,000 seats, and its arch rival All Nippon Airways is in third spot with 30,000 seats.

Currently, Malaysia Airlines operates a 12 times weekly service and JAL seven times weekly service, representing 19 times weekly flights, between Kuala Lumpur to Tokyo.

Malaysia Airlines also operates flights to Osaka and a twice weekly service from Kota Kinabalu to Tokyo.