Singapore competition watchdog grants conditional nod to Malaysia Airlines-SIA tie-up
The proposed cooperation will see the two airlines work together on scheduling, pricing, sales and marketing, and other commercial areas, including expanded codesharing and special prorate arrangements.
In a statement, CCCS said the airlines had submitted a set of proposed commitments to address the commission's concerns over price and capacity coordination that could restrict competition on the Singapore-Kuala Lumpur (and vice versa) route.
The proposed commitments include maintaining weekly seat capacity at current levels, increasing capacity upon meeting certain performance benchmarks, reporting annual operational data for their low-cost carriers (LCCs) on the route, and appointing an independent auditor to monitor compliance.
'Taking market developments into account, including the impending permanent cessation by Jetstar Asia Airways Pte Ltd, CCCS accepted the proposed commitments as being sufficient to address its competition concerns arising from the proposed cooperation,' the commission stated.
CCCS noted that no concerns were raised by industry stakeholders during the consultation period from February 11 to March 4, 2025.
CCCS chief executive Alvin Koh said such joint ventures could improve connectivity and offer more choices for travellers.
'The proposed commitments offered by Singapore Airlines and Malaysia Airlines allow for flexibility to react to market developments and ensure that more flights will be added along the Singapore-Kuala Lumpur route as travel demand increases, which would translate to more travel options and better prices for passengers in the long run,' he said.
Koh added that CCCS would continue to monitor developments in the sector to ensure competition delivers positive outcomes for consumers.
SIA and Malaysia Airlines submitted a joint application to CCCS on March 24, 2023, on whether the proposed cooperation would be an anti-competitive agreement under the Competition Act 2004.
A further submission was made on November 3, 2023, stating that the cooperation would be limited to their full-service carriers and would not extend to their affiliated LCCs, namely Scoot and Firefly.
CCCS is a statutory board of the Ministry of Trade and Industry that administers and enforces the Competition Act 2004 and the Consumer Protection (Fair Trading) Act 2003, to guard against anti-competitive activities and unfair trade practices. — Bernama
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