Singapore – The Competition and Consumer Commission of Singapore (CCCS) has granted conditional approval of the proposed commercial cooperation after accepting commitments from Singapore Airlines (SIA) and Garuda Indonesia. It is worth noting that the partnership was already in plan back in 2023 and an MoU back in 2021.
According to CCCS, the parties submitted that the proposed cooperation between SIA and Garuda will lead to enhanced air travel product for Singapore to Indonesia services, as well as expanded virtual networks of the airlines, thereby providing an increased number of service offerings to passengers;
Moreover, the partnership aims to promote more competitive fares; have significant benefits to corporate account customersm create benefits for members of both airlines’ Frequent Flyer Programme; as well as improved connectivity for both Singapore and Indonesia, with consequential benefits to both countries’ aviation industry and tourism.
Part of the approval process was how CCCS conducted a market testing exercise from 13 to 26 June to assess whether the proposed commitments would sufficiently address the competition concerns arising from the proposed cooperation. Most relevant stakeholders did not raise any concerns with the proposed commitments.
Alvin Koh, chief executive at CCCS said, “Airline alliances are an important part of the aviation industry bringing significant benefits to the Singapore economy as well as overseas markets. We look forward to working closely with our businesses and stakeholders to deliver positive, prompt and impactful outcomes that matter. Full cooperation from businesses throughout the process, providing complete, concise and relevant information will facilitate the timely completion of CCCS’s review.”
