Singapore's Competition Watchdog conditionally approves commercial cooperation between Singapore Airlines and all Nippon Airways, telling the important steps in the proposed partnership.
The decision of Singapore's Competition and Consumer Commission (CCCS) announced on March 21 is also a reversal of previous concerns that the alliance between the two Star Alliance members would limit competition for flights between Singapore and Tokyo.
Commercial cooperation was first announced in January 2020, just before the Covid-19 pandemic hit. At the time, the two airlines were proposing a “metal neutral” agreement. This is expected to expand partnerships outside of Singapore and Japan to “major markets” such as Australia, India, Indonesia and Malaysia.
It covers “affiliations between a wide range of joint fare products, frequent flyer programs, and aligned corporate programs.”
CCCS has stated that both SIA and ANA have “slight market share” on flights between Singapore and Tokyo, and that in 2023 there is “evidence of expansion by existing competitors.”
SIA and ANA submitted that the cooperation would lead to benefits such as “improving connectivity” and “enhancing air travel” for services between Singapore and Japan. They also submit that leads to more competitive fares. “It results from the elimination of a combination of double alienation and better fares.”
The CCCS then discovered that price and capacity adjustments for flights between Singapore and Tokyo “limit the competition.” They also found that the benefits listed by SIA and ANA are “inadequate to outweigh competitive concerns.”
To this end, SIA and ANA provided four commitments, including maintaining seat capacity “on a tally basis.” CCCS says they are fully satisfied that the commitment can alleviate competitive concerns and have given them conditional approval.
SIA welcomes the CCCS decision and says it once again emphasizes that the partnership will “provide more travel benefits, seamless flight connectivity and access to a wider network.”
“Sia and Ana will release the details at the right time,” adds Sia.
