Etihad Airways, the national airline of the United Arab Emirates (UAE), announced Monday that it has signed a codeshare agreement with Malaysia Airlines in an effort to extend its destination network in Asia. Under the agreement, Etihad will place its two-letter “EY” code on Malaysia Airlines' flights between Kuala Lumpur, capital of Malaysia, and the country's popular islands of Kota Kinabalu, Penang, Kuching and Langkawi. In addition, Malaysia Airlines will place its “MH” code on services operated by Etihad between the UAE's capital Abu Dhabi and Bahrain, Doha and Muscat in the Gulf region. The new codeshare flights pave the way for closer co-operation between the two airlines on a range of other joint initiatives, including collaboration on frequent flyer programs, ground handling, customer support, cargo and airport lounge access, a statement by Etihad said. “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,” the airlines' chief executive James Hogan said. Etihad launched flights to Kuala Lumpur in January 2007, which has established itself as one of the airline's most popular business and leisure travel destinations. Established in July 2003, Etihad launched its first flight on Nov. 6 the same year and currently provides services to 48 destinations in Asia, Africa, Europe, and North America.