The Competition Commission of Singapore (CCS) on Tuesday (Apr 5) said it is inviting public feedback on the proposed joint venture (JV) between Singapore Airlines (SIA) and Deutsche Lufthansa.
The competition watchdog said it received a notification of the proposed JV on Feb 5 this year. It involves co-operation between SIA and Lufthansa regarding scheduled air passenger services between some European countries – specifically Germany, Austria, Switzerland and Belgium – and Singapore, Indonesia, Malaysia and Australia in Asia-Pacific.
Both airlines added the proposed JV will mean working together in terms of pricing, inventory management, sales and marketing. For non-stop or direct services, the JV would involve schedule coordination, capacity coordination and revenue sharing.
“The proposed JV is expected to channel more passenger traffic through Singapore, which will give rise to significant benefits to the travelling public with regard to the expansion of travelling options and services, increased network connectivity, better scheduling of services, and harmonised service offerings,” CCS said, citing the airlines’ submissions.
“The parties envisage that the proposed JV is also expected to generate significant economic benefits to Singapore, including the improvement and consolidation of Singapore as the premier air hub in South-east Asia, and potential increases in tourism and other such benefits,” it added.
The closing date for submissions is on or before Apr 19.
Source: Channel News Asia | 5 April 2016