Etihad Airways has signed a new codeshare agreement with Malaysia Airlines.

Under the deal, the Abu Dhabi-based airline will place its two-letter ‘EY’ code on Malaysia Airlines’ flights between the country’s capital city, Kuala Lumpur, and the popular islands of Kota Kinabalu, Penang, Kuching and Langkawi.

In turn, Malaysia Airlines will place its ‘MH’ code on services operated by Etihad between its home base of Abu Dhabi and Bahrain, Doha and Muscat in the Gulf region.

The announcement follows the signing in May of a memorandum of understanding between Etihad Airways and Malaysia Airlines. It brings to ten the number of codeshare agreements now operated by Etihad Airways.

The agreement paves the way for closer co-operation between the two airlines on a range of other joint initiatives, including collaboration on frequent flyer programmes, ground handling, customer support, cargo and airport lounge access.

“Asia is an important market for Etihad and there is huge demand amongst our customers to travel beyond the Malaysian capital, which this new codeshare agreement now allows,' said James Hogan, Etihad Airways’ chief executive.

“With a steady increase in tourist arrivals over the years from the Gulf Cooperation Council (GCC) countries, we hope to tap into this partnership to further increase the passenger numbers from that region, not only to Malaysia but to our destinations beyond,” said Idris Jala, Malaysia Airlines’ managing director and chief executive.-TradeArabia News Service