The Competition and Consumer Commission of Singapore (CCCS) has granted conditional approval for a proposed commercial partnership between Singapore Airlines and Malaysia Airlines, after both airlines addressed competition concerns.
On 24 March, 2023, CCCS received an application from the airlines addressing whether the proposed partnership would be anti-competitive under the Competition Act 2004. The investigation found that the price and capacity coordination between the airlines would restrict competition on their Singapore-Kuala Lumpur (and vice versa) route.
To address concerns, both airlines have committed to: maintain weekly seat capacity levels at existing levels prior to the proposed cooperation; propose an increase in capacity levels when meeting certain performance targets; report operation data of their LCCs on the Singapore-Kuala Lumpur route annually; and appoint an independent auditor to monitor their compliance with the commitments.
“The proposed commitments offered by Singapore Airlines and Malaysia Airlines allows 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,” said Alvin Koh, Chief Executive of CCCS.
The proposed cooperation will see the two airlines work together on various areas of their businesses, including scheduling, pricing, sales and marketing, and other commercial areas. It will also see the expansion of the existing codeshare agreement.
