MAS and China Southern are in final talks to launch a new code-share agreement which will see MAS accessing CZ's network within China and in return CZ will be able to tap into MAS regional and onward connections via KUL.
Again - this shows MAS' continuing effort to integrate itself into Skyteam's network of partners despite Air France's continued obstinence. AF reinforced its code-share with Qantas recently further undermining MAS' hopes that AF will start flights to KUL and from there, place AF passengers on MH flights onwards to Australia and NZ.
MAS is also continuing talks with Alitalia on the joint-development of the KUL-Rome (for passengers) and KUL-Milan (for cargo) routes. Rumours are abound that Aeroflot will return to KUL in Summer 2007 and MAS is keen to negotiate with the Russians in offering SU similar code-sharing benefits that KLM currently enjoys at Kuala Lumpur.
MAS and Korean Air recently also agreed to expand their code-share network at their respective hubs and MAS is currently contemplating expansion of its current code-share with KLM to include trans-atlantic traffic.
Returning to the main headline - this code-share also comes as preparations are detailed for China and Malaysia to enter an open-skies agreement by 2010 allowing for unlimited growth and traffic between the two countries by their respective carriers.