MAS, AirAsia X sign accord

PETALING JAYA: Malaysia Airlines (MAS) has entered into a re-accommodation agreement (RA) with AirAsia X, which would enable the latter's passengers to fly on the national carrier to “utilise excess capacities” and “generate additional revenue”.

MAS said in a filing with the stock exchange that the agreement was to facilitate the re-accommodation of AirAsia X's ticketed passengers following the suspension and termination of its flights to Mumbai, New Delhi, London and Paris.

“As part of their service recovery measures, AirAsia X has requested the assistance of MAS to re-accommodate their passengers through an RA. “MAS has, in the past, upon request, on an ad-hoc basis provided uplift and re-accommodation of passengers of other airlines including AirAsia X, in line with normal industry practice.

Service recovery measures: MAS says the agreement is to facilitate the e-accommodation of AirAsia X’s ticketed passengers following the suspension and termination of its flights to Mumbai, New Delhi, London and Paris. — EPA

“These ad-hoc uplift and re-accommodation were provided, subject to the availability of excess seats on MAS flights and to MAS's commercial benefit,” it said. On the rationale for the RA, MAS said it would help fill projected excess capacities and gain incremental revenue. The financial risks to this, it added, were non-existent as the payment “will be collected upfront”.

The move comes amid earlier allegations that MAS had suffered financial losses because it flew for almost free passengers of AirAsia Bhd's long-haul, low-fare affiliate to destinations the latter had suspended. AirAsia X has since refuted this, saying it had agreed to pay “commercial rate” for getting its passengers rebooked on MAS flights.

AirAsia X had in January announced the suspension of four flights to Europe and India, followed by its KL-Christchurch route. It said at the time the cancelled European and Indian flights would be compensated with an alternative travel option at no additional cost, including full refunds, re-routes to other AirAsia X destinations, or a move to an alternative carrier where available.

-thestar online.