New Delhi: Air India and Saudi Arabia's Saudia have inked a preliminary pact to expand their strategic cooperation.Both airlines have a codeshare agreement.In a release on Thursday, Air India said it has signed a Memorandum of Understanding (MoU) that sets out a phased approach to developing the partnership.Also Read: Domestic air passenger traffic to rise by 3-6 pc in this fiscal: ICRA"Areas of cooperation include expanding the existing codeshare agreement, improving connectivity across both airlines' networks, exploring terminal co-location and exploring further operational and commercial opportunities, including cooperation between their loyalty programmes.Also Read: India on way to become a global hub for aircraft Maintenance, Repair and Overhaul (MRO): Government"The two parties will also assess opportunities to extend the partnership in the future to other airlines within their respective groups, including flyadeal and Air India Express," it said.