Proposed Joint Venture between Singapore Airlines Limited and Scandinavian Airlines System

Case Title

Proposed Joint Venture between Singapore Airlines Limited and Scandinavian Airlines System

Notifying Date:

29 June 2012

Notifying Parties:

The parties to the Agreement are:

(1) Singapore Airlines Limited (“SIA”);

(2) Scandinavian Airlines System Denmark-Norway-Sweden (“SAS”);

Summary of the nature and objective of the agreement

The Proposed JV is intended to increase competition for international scheduled air passenger services from Singapore and various Scandinavian destinations through the complementary networks of SIA and SAS [Group]. Under the Proposed JV Agreement, the Parties intend to enhance their code-share on each other’s international flights between Singapore and Scandinavia and beyond where practicable; coordinate flight schedules between Singapore and Scandinavia, harmonise service and product offerings on their flights between Singapore an Scandinavia; and engage in joint sales, marketing and promotional activities.

The purpose of the Proposed JV is to bring about mutual benefits to SIA and SAS, as well as benefits to the travelling public especially those who are travelling between Singapore and Scandinavia. It is envisaged that the Proposed JV will result in better connections at more competitive fares, better scheduling, the expansion of services and products available to passengers, enhanced opportunities to earn and utilize frequent-flyer points, and various other efficiencies.

The proposed JV is intended to be implemented as soon as the Parties received regulatory approval from the Competition Commission of Singapore.

The Proposed JV primarily relates to the provision of international scheduled air passenger services, specifically, the supply of international scheduled air passenger transport services between Singapore and Denmark, Norway, Sweden and Finland on a point-to-point basis.

Decision

On 31 October 2012, CCS issued the parties with a Clearance Decision on their proposed alliance.

Click here for the decision.