SIA gets green light for Lufthansa joint venture
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Singapore Airlines (SIA) will proceed with its plans to form a joint venture with Lufthansa on routes between Asia Pacific and Europe, after the Competition Commission of Singapore’s (CCS) approved the proposal.
The national carrier said it welcomed the CSS ruling, which allows the two airlines to enter commercial and operational partnerships, and to coordinate their services. The Australian Competition & Consumer Commission (ACCC) has also granted its approval for the partnership.
“The joint venture with Lufthansa Group will provide an attractive proposition to travellers, with unparalleled network connectivity between Europe and the Asia Pacific,” SIA’s CEO, Goh Choon Phong, said following the CSS approval.
“It is yet another example of how partnerships with other airlines enable us to provide more options to our customers which we would otherwise not be able to provide on our own.”
SIA and Lufthansa signed a wide-ranging partnership agreement in November 2015, aimed at expanding codeshare services, aligning corporate programmes and cooperating commercially on flights in Europe, Southeast Asia and Australia. Only last month, the two airlines announced plans to add routes to 20 European cities to their codeshare partnership.
Carsten Spohr, Lufthansa’s CEO, said the joint venture would allow the two airlines to compete in a “fiercely competitive environment”.
“Together the Lufthansa Group and Singapore Airlines will be able to offer even better connections and services throughout Europe and Southeast Asia than are already available. The partnership with Singapore Airlines is an excellent addition and an important pillar of our global joint venture network,” he commented.
In addition to SIA and Lufthansa, the agreement covers the airlines’ subsidiaries, SilkAir, SWISS and Austrian Airlines.
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