Singapore Airlines and Garuda Indonesia receive approval for joint venture
SINGAPORE - Singapore Airlines (SIA) and Indonesian flag carrier Garuda Indonesia have received approval from the Competition and Consumer Commission of Singapore for a joint venture (JV) agreement.
The two companies said on July 5 that the JV will allow them to collaborate on a wider range of commercial activities that will benefit both airlines, Singapore, and Indonesia.
These activities may include operating joint revenue-sharing flights between the two countries; coordinating flight schedules to offer travellers more options; “seamless connectivity” between Singapore, Indonesia and other countries; and exploring joint sales and marketing initiatives that provide greater value to both airlines’ customers.
SIA and Garuda first announced their plans to enter into a JV agreement in May 2023, to increase passenger capacity between Singapore and Indonesia.
In May 2024, both airlines signed an agreement to explore revenue-sharing arrangements for flights between the two countries, allowing their frequent flyer members to earn and redeem miles on codeshare flights.
These flights include routes between Singapore and Bali, Jakarta, Medan and Surabaya in Indonesia, and long-haul routes between Singapore and Johannesburg, London, and Mumbai.
Both airlines have also embarked on joint marketing initiatives to promote tourism.
Mr Irfan Setiaputra, Garuda’s president and chief executive officer, said the approval “marks significant progress” in its commitment to enhancing service quality and broadening both airlines’ networks.
The JV is one of the group’s strategies for creating value for its customers, through the provision of “seamless services for passengers with more flight schedule options, and ease in earning and redeeming mileage”, he said.
He added that the collaboration will help to boost Indonesia’s tourism and support its post-pandemic economic recovery.
SIA chief executive Goh Choon Phong said: “This partnership underscores both airlines’ commitment to improving connectivity between Indonesia and Singapore and beyond, boosting both business and leisure travel, and contributing to economic growth.”
Shares of SIA closed at $6.98 on July 5, down three cents or 0.4 per cent, before the announcement.
