KARACHI, July 23: PIA and Thai Airways on Friday agreed to make optimum utilization of available frequencies in the existing agreement and improve upon the economics of operation.

In a memorandum of understanding signed between the two airlines, it was also agreed that two the airlines will enter into dynamic code-share and free-selling on different routes.

The airlines will adjust their schedules and harmonise fares so as to avoid clash of flights and unhealthy competition. A decision to this effect was taken at a high level meeting held to discuss various possibilities of commercial cooperation between the two airlines.

In the signing of MOU, the PIA delegation was led by director of marketing, Syed Kamran Hassan, while Thai Airways was represented by Vice-President Marketing Development and Support Pridi Boonsue.

It was also agreed that the two airlines will endeavour to finalize all arrangements for Code Share in time to make this arrangement effective from start of winter 2004 scheduling period.

The airlines will offer through-fares (PK-TG fares) for points beyond Bangkok and Karachi/ Lahore respectively so as to have common selling levels for all points operated by the two airlines beyond these hubs. The two airlines will exchange proposals/ rates through mail and finalise them by Sept 15. -APP