217 views

CCCS grants conditional approval to SIA-Malaysia Airlines' partnership

The agreement aims to grow traffic between Singapore and Malaysia.

Singapore Airlines and Malaysia Airlines Berhad's proposed commercial cooperation has been granted conditional approval by the Competition and Consumer Commission of Singapore (CCCS).

The joint business arrangement (JBA) signed by the two airlines last 30 October 2019 was subject to assessment by the CCCS for possible infringement of section 34 of the Competition Act which prohibits "agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within Singapore."

Under the JBA, the two airlines will cooperate on "scheduling, pricing, sales and marketing cooperation and other commercial areas, including special prorate arrangements and expanded code sharing cooperation to leverage on the strength of both airlines’ networks to grow traffic" between Singapore and Malaysia, and vice versa, as well as markets such as Europe."

The cooperation also covers SilkAir Private Limited and Scoot Tigerair Pte Ltd, wholly-owned subsidiaries of SIA, and FlyFirefly Sdn Bhd, MAB's sister company.

Following a public assessment and receiving a set of proposed commitments from both carriers, CCCS granted conditional approval on the JBA.

The commitment includes the airlines subjecting their arrangement to CCCS' further review when "a series of indicators signal a sustained recovery and subsequent sustained normalcy of aviation activity" on its overlapping direct routes like Singapore to Kuala Lumpur and vice versa, and Singapore to Kuching.

"There are also sufficient safeguards in place for the Parties to furnish the necessary information for CCCS’s assessment as to whether the trigger events are met," added the commission.


 

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!