CCS Consults on the Proposed Joint Venture between Airbus Asia and SIA

(Please click here for the PDF)

1. The Competition Commission of Singapore (“CCS”) is seeking feedback on the proposed joint venture between Airbus Services Asia Pacific Pte. Ltd. (“Airbus Asia”) and Singapore Airlines Limited (“SIA”) (together, “the Parties”).

2. CCS received an application for decision on 29 October 2014 from the Parties with regard to the proposed joint venture for the provision of pilot training services in the Asia-Pacific region pursuant to a Joint Venture agreement between the Parties dated 13 August 2014.

3. The application is made, under section 57 of the Competition Act, in relation to section 54 of the Competition Act which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

4. CCS understands from the application that the Airbus group of companies (“Airbus Group” to which Airbus Asia belongs) is active, inter alia, in the manufacture and sale of commercial aircrafts, telecommunications equipment, civil and military helicopters, space vehicles, guided weapons and drones, amongst others. SIA is a provider of aviation services, in particular, passenger and air cargo transportation services, aircraft engineering and maintenance services, training services, and air charters, tour wholesaling and related activities.

5. The Parties submitted that they may possibly be considered as potential competitors in respect of the provision of pilot training services for Airbus aircraft in the Asia-Pacific region.

6. The Parties are of the view that the joint venture, when carried into effect, will not result in a substantial lessening of competition due to the low combined market shares of the Parties in the relevant market(s), the competitiveness of the pilot training services market and the availability of a multitude of alternative sources of supply in the market(s).
   
   Public Consultation

7. CCS is inviting public feedback in relation to the proposed joint venture.

8. More information on the public consultation can be accessed from the CCS website under the section “Public Register and Consultation”. The closing date for submissions is on or before 14 November 2014. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

-       END    -

About The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.
For more information, please visit www.ccs.gov.sg.

For media clarification, please contact

Ms. Lim Le-Anne
Senior Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: lim_le-anne@ccs.gov.sg
DID: 6325 8304 / 9478 8824