News
Singapore clears SIA -Lufthansa joint venture
December 16th 2016
The Competition Commission of Singapore (CCS) has issued formal approval of the joint venture between Singapore Airlines (SIA) and Lufthansa Group on routes to Australia, Indonesia, Malaysia and Singapore and in Europe to Austria, Belgium, Germany and Switzerland. Read More »
The partnership aims to expand codeshare ties, align corporate programs and deepen commercial cooperation in key areas of pricing, inventory management, sales and marketing.
SIA subsidiary, SilkAir, and LH Group subsidiaries, Austrian Airlines and Swiss Air Lines International (SWISS), are included in the agreement.
The CCS has attached two conditions to its approval. SIA and LH must maintain and subsequently increase passenger seat capacity on the Singapore-Frankfurt and Singapore-Zurich routes where they hold more than 80% of the traffic. The partners also must carry a minimum number of Singapore passengers where the point of sale for the ticket was Singapore. The CCS said an independent auditor will be appointed to monitor compliance with these conditions.
In September, Lufthansa signed a joint venture agreement with fellow Star Alliance member, Air China, for all services between Austria, Belgian, Germany, Switzerland and the Mainland from 2017. Lufthansa now has three joint ventures in the region: All Nippon Airways (ANA) as well as Air China and SIA.
