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.”

Singapore – Singapore Airlines and Indonesian airline Garuda Airlines have bared plans to enter into a joint venture arrangement that would deepen the cooperation between the two carriers, increase passenger capacity between Singapore and Indonesia, and offer customers more travel options between the two countries.

Said joint venture expands on the previous memorandum of understanding between the two airlines on November 2021.

Through the expanded joint venture, Garuda Indonesia and Singapore Airlines are allowed to potentially coordinate schedules between Singapore and Indonesia, offering customers more seamless flight connectivity between the two countries and beyond. 

Moreover, the carriers will also explore the implementation of new initiatives, including joint fare products and an alignment of corporate programmes to enhance the value proposition to customers.

Irfan Setiaputra, president and chief executive officer at Garuda Indonesia, said, “With the existence of more than a decade of collaboration between these two national flag carriers, this joint venture agreement, as a further milestone of the partnership expansion initiative, will certainly strengthen the commitment between the two carriers simultaneously, delivering a seamless and valuable flying experience to both our customers across the globe.”

He added, “The joint venture agreement is also a part of our effort to improve our company’s performance through our network strategy by optimising our network through partnership with our strategic airline partners, especially Singapore Airlines. With this initiative, both airlines agreed to further explore more advantages for both our customers, allowing them to enjoy various flight schedules with enhanced value services within the networks of Garuda Indonesia and Singapore Airlines.”

Meanwhile, Goh Choon Phong, chief executive officer at Singapore Airlines, said: “This joint venture will be a win-win arrangement that elevates the long-standing partnership between Garuda Indonesia and Singapore Airlines. It reflects our firm commitment to grow the aviation markets in Indonesia and Singapore, facilitating a greater level of business and people connections and promoting both countries as regional tourism destinations. Our customers will also enjoy even more benefits, including an improved level of network connectivity, enhanced travel convenience, and additional fare options.”