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Garuda Indonesia-Singapore Airlines JV receives regulatory nod from CCCS

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Garuda Indonesia-Singapore Airlines JV receives regulatory nod from CCCS
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Josh Smith Editor | AviationPros

Garuda Indonesia and Singapore Airlines (SIA) today received the Competition and Consumer Commission of Singapore’s (CCCS) approval for their commercial joint venture agreement.

With this approval, the airlines will be able to deepen their strategic partnership across a wider range of commercial activities. These activities potentially include operating joint revenue-sharing flights between the two countries, coordinating flight schedules to offer travelers more options and seamless connectivity between Singapore and Indonesia, and exploring joint sales and marketing initiatives that provide greater value to both airlines’ customers.

Since Garuda Indonesia and Singapore Airlines signed an agreement to deepen their partnership in May 2023, the carriers have been working on initiatives including giving GarudaMiles and KrisFlyer members the option to earn and redeem miles on codeshare routes. They have also embarked on joint marketing initiatives to promote tourism activities.

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The airlines currently codeshare on a wide range of flights, including routes between Singapore and Indonesian cities such as Bali, Jakarta, Medan, and Surabaya. They also share long-haul routes between Singapore and Johannesburg, London (Heathrow), and Mumbai.

Irfan Setiaputra, president and chief executive officer of Garuda Indonesia, stated: “We are very pleased to receive this approval, as it marks significant progress towards our commitment to enhance service quality as well as broaden both Garuda Indonesia and Singapore Airlines’ networks through a deepening partnership. The joint venture initiative that we are preparing today has been one of the strategies to ensure extensive value creation for our loyal customers. Having regulatory approval as the first step in a commercial agreement will provide more opportunity for developing well-executed strategic ideas.”

“Moreover, we hope that this joint venture agreement can provide seamless services for passengers with more flight schedule options and ease in earning and redeeming mileage. Also, this collaboration may deliver concrete action to contribute to boosting Indonesian tourism activities, which will support the post-pandemic economic recovery progress,” Irfan added.

Goh Choon Phong, chief executive officer of Singapore Airlines, commented: “The robust strategic partnership between Garuda Indonesia and Singapore Airlines has enabled us to broaden our codeshare services over the last few years, offering our customers more choices on flights. With the CCCS’s approval, we are poised to deepen our collaboration across a wider scope of commercial activities. Along with the ongoing work to strengthen the links between our frequent flyer membership programs, this will provide our customers with even more options and enhanced value. 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.”

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