Capital A, the parent of the Malaysian budget carrier AirAsia, has partnered with flag carrier Garuda Indonesia to expand cooperation between the airlines on passenger flights and logistics. AirAsia and Citilink, a low-cost carrier affiliated with Garuda, signed a memorandum of understanding concerning an interlining agreement. This is the first such agreement Capital A has entered with another airline. Under the deal, passengers would be able to plan itineraries with transfers using fleets from both carriers. Such tickets will be available on either company's booking platform. "This collaboration is expected to enhance the flying experience for customers with seamless and hassle-free services," AirAsia Group CEO Bo Lingam said in a statement last week. AirAsia has hubs in Malaysia, Thailand, the Philippines and Indonesia, among other locations. The carrier serves approximately 150 cities in Southeast Asia. Citilink connects to about 50 cities in Indonesia. The tie-up is expected to expand the flight network and promote sales. The two sides are considering embarking on a code-sharing agreement as well. The Indonesian government plans to merge Garuda with fellow state-owned airlines Citilink and Pelita Air in a bid to streamline operations. Capital A seeks to enter into an interlining deal with Garuda's fleet too. AirAsia and Garuda will also collaborate on cargo flights. In addition, the two sides will explore providing low-cost maintenance and repair services to other airlines. <br/>