Apparently, Garuda Indonesia and Singapore Airlines Subject to regulatory approval, we will expand our business and Commercial joint ventures.
This approval will enable the two airlines to deepen their strategic partnership across a broader range of commercial activities, which will benefit not only both airlines but also Indonesia and Singapore.
These may include operating joint revenue sharing flights between the two countries, aligning flight schedules to offer travellers more choice and seamless connections between Singapore and Indonesia and beyond, and exploring joint sales and marketing activities to deliver increased value to customers of both airlines.
Since Garuda Indonesia and Singapore Airlines signed an agreement to deepen their partnership in May 2023, they have been working on initiatives such as offering GarudaMiles and KrisFlyer members the option to earn and redeem miles on codeshare routes.
The two airlines currently codeshare on a wide range of flights, including between Singapore and Bali, Jakarta, Medan and Surabaya in Indonesia, as well as long-haul routes between Singapore and Johannesburg, London (Heathrow) and Mumbai.
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Garuda Indonesia President and CEO Irfan Setiaputra said:
“We are very pleased with this approval, which marks a major step forward in our efforts to improve service quality and expand the networks of Garuda Indonesia and Singapore Airlines through deepening our partnership. The joint venture we are preparing today is part of our strategy to ensure broader value creation for our loyal customers. With regulatory approval as the first step in our commercial agreement, we will have more opportunities to successfully put our strategic ideas into action.”
“Furthermore, we hope that this joint venture agreement will enable us to provide seamless services to passengers with more flight schedule choices and easier earning and redeeming mileage points. This cooperation will also result in concrete actions that will contribute to boosting tourism activity in Indonesia, supporting the progress of post-pandemic economic recovery,” explained Irfan.
Singapore Airlines Chief Executive Officer Goh Choon Pong said:
“Garuda Indonesia and Singapore Airlines’ strong strategic partnership has enabled us to expand our codeshare services over the past few years, offering our customers more flight options. With the CCCS approval, we are now ready to deepen our collaboration across a wider range of commercial activities, which, together with our ongoing efforts to strengthen collaboration between our frequent flyer programs, will provide our customers with even more choice and value. This partnership underscores our two airlines’ commitment to improving connectivity between Indonesia and Singapore and beyond, facilitating both business and leisure travel and contributing to economic growth.”
Growing Together
While alliances are beneficial, they have proven to be much better economically for airlines, as they allow them to tighten schedules and pool resources on mutually beneficial routes or separate markets when necessary.
Now that Singapore Airlines and Garuda Indonesia have been given the green light to expand, it will be interesting to see how far their joint venture will go, and how deep the gulf will go.
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