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Proposed Joint Venture between Deutsche Lufthansa AG and Singapore Airlines Limited

Reference:

CCS 400/001/16

Notifying Parties:

The parties to the agreement are:

  1. Singapore Airlines Limited; and
  2. Deutsche Lufthansa AG.

Notifying Date:

5 February 2016*

*CCS accepted the notification as complete on 24 March 2016 upon receiving the Parties’ clarifications on the scope of notification.

Summary of transaction:

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

Singapore Airlines Limited (“SIA”) and Deutsche Lufthansa AG (“LH”) (collectively “the Parties”) have entered into a joint venture arrangement (“Proposed JV”) relating to the provision of scheduled air passenger services between certain European Countries (specifically Germany, Austria, Switzerland and Belgium (the “LH Home Markets”)) and certain Asia/Asia Pacific countries (specifically Singapore, Indonesia, Malaysia and Australia (the “SQ Home Markets”)). The Proposed JV extends to services operated by SilkAir (Singapore) Private Limited (“MI”), Swiss International Air Lines AG (“LX”), and Austrian Airlines AG (“OS”), being airlines affiliated to the Parties.

The Proposed JV relates to the provision of international scheduled air passenger services, specifically, the supply of international scheduled air passenger transport services between the SQ Home Markets and the LH Home Markets. Cooperation between the parties is specific to services which have an origin in the LH Home Markets and a destination in the SQ Home Markets, or vice versa. Services that do not have both an origin and destination in the LH Home Markets and the SQ Home Markets are not subject to the Proposed JV. Similarly, services where the transit point is not within the LH Home Markets or the SQ Home Markets, and services involving sectors operated by a third party carrier (i.e. a carrier that is not SQ, MI, LH, LX, or OS), are not subject to the Proposed JV.  

The Proposed JV contemplates cooperation in respect of pricing, inventory management, sales and marketing. In addition, and in respect of routes involving non-stop or direct services operated between the SQ Home Markets and the LH Home Markets (including services between Singapore – Frankfurt; Singapore – Munich; and Singapore – Zurich), the Proposed JV would involve schedule coordination, capacity coordination and revenue sharing.

The objective of the Proposed JV is to enhance passenger air services between the LH Home Markets and the SQ Home Markets. The Proposed JV is expected to channel more passenger traffic through Singapore, which will give rise to significant benefits to the travelling public with regard to the expansion of traveling options and services, increased network connectivity, better scheduling of services, and harmonised service offerings.

The Proposed JV is also expected to generate significant economic benefits to Singapore, including the improvement and consolidation of Singapore as the premier air hub in South-East Asia, and potential increases in tourism and other such benefits.

The Proposed JV is intended to be implemented as soon as the Parties receive the necessary legal and regulatory approvals.

Decision

On 12 December 2016, CCS accepted voluntary commitments from the Parties and cleared the Proposed JV.

Media Release
Annex A - full set of commitments from the Parties

Read the Grounds of Decision.

Updated Date

Last Updated on 13 August 2018