Summary
- Code sharing between airlines allows for expanded networks and destinations for passengers.
- Singapore Airlines and Garuda Indonesia strengthen their commercial partnership, receiving approval from the Competition and Consumer Commission of Singapore.
- The partnership aims to provide customers with more options, added value and improved connectivity between Indonesia and Singapore, boosting business and leisure travel.
Codesharing between airlines has been around for decades and is a highly effective way for airlines to offer their customers seamless access to expanded networks and destinations. The system has also helped many airlines get back on their feet following the COVID-19 pandemic, when the return to service of stored aircraft was hampered by a lack of maintenance capacity, particularly in the Asia-Pacific region.
More choice for passengers
Singapore Airlines was the first Asian carrier to restart after the pandemic, carefully managing capacity to anticipate demand, but at a level that kept load factors high. With its extensive international network of over 70 destinations via its super-hub at Singapore Changi Airport (SIN), Singapore Airlines is an ideal airline partner with many suitors.
Photo: Dmitry Dven | Shutterstock
In May, SIA and Garuda Indonesia signed an agreement to strengthen their ties and form a deeper commercial partnership. The two Asian carriers already have a codeshare agreement in place, but see scope for developing other business opportunities, such as offering reciprocal benefits to their frequent flyer members when they travel on both airlines.
Photo: Airbus
Even if the airlines agree, this type of commercial partnership must be approved by national competition authorities, which must balance the inherent anti-competitive aspects that often exist with the general interest of travelers. Such approvals can often take time, but in this case, the Singaporean authorities quickly approved the agreement.
A truly global network
On Friday, 5 July 2024, SIA and Garuda Indonesia (Garuda) announced that they have received approval for the agreement from the Competition and Consumer Commission of Singapore (CCCS). Following this approval, SIA and Garuda can now deepen their strategic partnership across a wide range of business activities that will benefit their customers and the interests of Singapore and Indonesia.
Related
Scoot and Singapore Airlines relegate COVID to ancient history
Singapore Airlines and Scoot have been the top performers in Asia in the post-pandemic period and continue to grow.
Singapore Airlines Group CEO Goh Choon Phong said the strong strategic partnership between Garuda Indonesia and Singapore Airlines has enabled the airlines to expand their codeshare services in recent years, providing customers of both airlines with more choice when it comes to flying.
“Alongside continued efforts to strengthen the links between our loyalty membership programs, this will provide our customers with even more options and added value. This partnership underlines the commitment of both airlines to enhance connectivity between Indonesia and Singapore and beyond, boosting business and leisure travel and contributing to economic growth.”
Photo: Julius Bramanto | Shutterstock
Garuda Indonesia has been the national airline for over 70 years and, after a challenging period during the pandemic lockdowns, has emerged as a more agile and profitable airline. It has rebuilt its network to cover over 35 domestic and 15 international destinations, and operating in Asia’s largest domestic market will make it a strong partner for SIA when the new partnership becomes operational.
Related
Garuda Indonesia eyes quick gains with more Airbus A330s, Boeing 737s
Garuda Indonesia’s 2023 results show it has emerged strong from its restructuring and, with more aircraft coming on board, it looks set for a profitable 2024.
Garuda Chairman and CEO Irfan Setiaputra said the regulatory approval marks significant progress and, as the first step in a commercial agreement, will provide more opportunities to develop well-executed strategic ideas.
“We hope that this agreement will 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.”
Since signing the agreement in May, the two airlines have rolled out a number of initiatives, including offering GarudaMiles and KrisFlyer members the opportunity to earn and redeem miles on codeshare routes. They are looking to operate joint revenue flights between Singapore and Indonesia and beyond, and have embarked on joint marketing to promote tourism in both countries.
Today, SIA and Garuda codeshare on a wide range of routes, including between Singapore and the Indonesian cities of Bali, Jakarta, Medan and Surabaya. This seamless codeshare connectivity extends to long-haul routes between Singapore Changi and Johannesburg, Mumbai and London Heathrow.
