Proposed Commercial Cooperation Framework between Singapore Airlines Limited and TATA SIA Airlines Limited

Reference:

CCCS 400-110-2020-001

Notifying Parties:

The parties to the agreement are

  • Singapore Airlines Limited (“SIA”); and
  • TATA SIA Airlines Limited (“UK”)

(collectively, the “Parties”)

Notifying Date:

30 November 2020

Summary of transaction:

Note: The summary information posted on this Public Register on the nature and objectives is provided by the Parties. CCCS makes no representation as to the accuracy or veracity of the summary information posted.

The Parties have entered into a Commercial Cooperation Framework Agreement, to bring about a metal-neutral alliance in respect of services between Singapore and India (“Proposed Cooperation”). The scope of the Proposed Cooperation includes among other things, 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 India and between India and certain agreed markets).

Subject to the agreement of the Parties, the Proposed Cooperation will extend to include SilkAir (Singapore) Private Limited and potentially to the operations of Scoot Tigerair Pte Ltd (both wholly-owned subsidiaries of SIA).

The Proposed Cooperation is expected to result in significant consumer and economic benefits, and efficiencies. Including, inter alia,:

  • the increased likelihood of an expedited and more sustainable reinstatement of capacity in the current COVID-19 circumstances;
  • improved connectivity for both Singapore and India, with consequential benefits to both countries’ aviation industry and tourism sector in the current COVID-19 circumstances;
  • increased potential for the Parties to add capacity and/or introduce new routes;
  • improved fare availability at all fare levels as a result of inventory and pricing coordination;
  • more competitive fares through the reduction of double marginalisation;
  • significant benefits to both SIA and UK’s corporate account customers; and
  • benefits for members of both SIA and UK’s frequent flyer programmes.

The Proposed Cooperation relates to the provision of international air passenger transport services. The scope of the proposed cooperation will include all services operated by the respective parties between Singapore and India.

The Parties submit that they overlap on 16 Origin-Destination routes (the “Overlapping Routes”) in the provision of air passenger transport services between Singapore and India, prior to COVID-19, both on a direct and non-direct basis as set out in Table 1 below.

Table 1: Parties’ Overlapping Routes

Parties' Overlapping Routes
 Direct routes
 1.  SIN-BOM vv
 2.  SIN-DEL vv
 Non-direct routes
 3.  SIN-AMD vv
 4.  SIN-ATQ vv
 5.  SIN-BBI vv
 6.  SIN-BLR vv
 7.  SIN-CCU vv
 8.  SIN-COK vv
 9.  SIN-GAU vv
 10.  SIN-GOI vv
 11.  SIN-HYD vv
 12.  SIN-IXZ vv
 13.  SIN-LKO vv
 14.  SIN-MAA vv
 15.  SIN-TRV vv
 16.  SIN-VNS vv

Decision:

Decision Date: 5 March 2024

Read the Media Release.

The Grounds of Decision will be made available in due course.