Garuda Indonesia And Singapore Airlines Secure Regulatory Approval For Innovative Commercial Alliance

Reading Time: 2 minutes

Regulators have approved the commercial partnership between Garuda Indonesia and Singapore Airlines, paving the way for an innovative and strategic collaboration.

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

This green light allows the airlines to enhance their strategic collaboration across various commercial activities, which will benefit both carriers and the countries of Indonesia and Singapore. The partnership may include operating joint revenue-sharing flights between the two nations, synchronizing flight schedules to offer travelers more choices and seamless connectivity, and launching joint sales and marketing campaigns to provide additional value to customers of both airlines.

Since the agreement was signed in May 2023, Garuda Indonesia and Singapore Airlines have been working on several initiatives, including allowing GarudaMiles and KrisFlyer members to earn and redeem miles on codeshare routes. They have also initiated joint marketing efforts to boost tourism.

Currently, the airlines codeshare on numerous routes, such as flights between Singapore and Indonesian cities like Bali, Jakarta, Medan, and Surabaya, as well as long-haul routes between Singapore and Johannesburg, London (Heathrow), and Mumbai.

Mr Irfan Setiaputra, President and Chief Executive Officer, Garuda Indonesia, said: “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,” Mr Irfan explained.

Mr Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said: “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 programmes, 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.”