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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, pursuant to which the Parties agree to cooperate in relation to, among other things, scheduling, pricing, sales and marketing, and other commercial areas (including expanded codesharing and special prorate arrangements) to bring about a metal-neutral alliance in respect of services between Singapore and Indonesia. The proposed cooperation is expected to result in significant consumer and economic benefits, and efficiencies. Including, inter alia:
- An enhanced air travel product for Singapore to Indonesia services;
- Expanded virtual networks of the airlines, thereby providing an increased number of service offerings to passengers;
- More competitive fares through the reduction of double marginalisation and better fare combinability;
- Significant benefits to corporate account customers;
- Benefits to both airlines’ frequent flyer programme members;
- Potential scheduling benefits and time savings; and
- Improved connectivity for both Singapore and Indonesia, with consequential benefits to both countries’ aviation industry and tourism.
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 Indonesia.
The Parties submit that the relevant market should comprise direct air passenger services between Singapore and Indonesia, and in particular each origin and destination city pair of the overlapping direct routes, namely between:
- Singapore to Jakarta (SIN-CGK vv);
- Singapore to Denpasar (SIN-DPS vv); and
- Singapore to Surabaya (SIN-SUB vv).
For completeness, the proposed cooperation also extends to various overlapping indirect routes (i.e., where only one party operates a direct flight, and the other operates a one-stop flight):
- Singapore to Balikpapan (SIN-BPN vv);
- Singapore to Medan (SIN-KNO vv);
- Singapore to Praya (SIN-LOP vv);
- Singapore to Manado (SIN-MDC vv);
- Singapore to Pekanbaru (SIN-PKU vv);
- Singapore to Makassar (SIN-UPG vv); and
- Singapore to Yogyakarta (SIN-YIA vv).
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