Singapore Airlines and Garuda Indonesia have received approval from the Competition and Consumer Commission of Singapore (CCCS) for a commercial joint venture agreement.
With the approval of the CCCS, the airlines will be able to deepen their strategic partnership across a wider range of business activities such as operating joint revenue-sharing flights between Singapore and Indonesia, coordinating flight schedules to provide travellers with more options and seamless connectivity, and exploring joint sales and marketing initiatives.
The two airlines have also been working on initiatives, including offering KrisFlyer and GarudaMiles members the opportunity to earn and redeem miles on codeshare flights. Currently, the airlines codeshare on flights between Singapore and the Indonesian cities of Bali, Jakarta, Medan and Surabaya. They also codeshare on long-haul flights between Singapore and Johannesburg, London (Heathrow) and Mumbai.
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“The strong strategic partnership between Garuda Indonesia and Singapore Airlines has enabled us to expand our codeshare services in recent years, providing our customers with more flight choices. With the approval of CCCS, we are ready to deepen our collaboration in a wider range of business activities,” said Goh Choon Phong, CEO of Singapore Airlines.
“Alongside continued efforts to strengthen the links between our loyalty membership programmes, this will provide our customers with even more options and added value. This partnership underlines both airlines’ commitment to improving connectivity between Indonesia and Singapore and beyond, boosting business and leisure travel and contributing to economic growth,” Goh added.
The two airlines have also launched joint marketing initiatives to promote tourism activities.
“We are very pleased to receive this approval as it marks significant progress towards our commitment to enhance service quality as well as expand the networks of Garuda Indonesia and Singapore Airlines through a deepened partnership,” said Irfan Setiaputra, President and Managing Director of Garuda Indonesia.
Setiaputra added that the joint venture initiative it is preparing today is one of the strategies to ensure significant value creation for its loyal customers. “Obtaining regulatory approval as the first step in a commercial agreement will provide more opportunities to develop well-executed strategic ideas,” Setiaputra said.
“We also hope that this joint venture agreement will help provide seamless services to passengers with more flight schedule options and ease of mileage accumulation and redemption. Furthermore, this collaboration can result in concrete actions to help boost Indonesian tourism activities, which will support the progress of post-pandemic economic recovery,” Setiaputra explained.
Singapore Airlines and Garuda Indonesia first announced their intention to enter into a joint venture agreement in May last year. The deal was subject to regulatory approvals and would complement the memorandum of understanding (MoU) the two airlines signed in November 2021.
At the time, the proposed joint venture covered routes between Singapore and Denpasar, Jakarta and Surabaya and allowed Singapore Airlines and Garuda Indonesia to coordinate schedules, explore the implementation of new initiatives and much more.
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