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Competition watchdog to mediate SIA-Air New Zealand tie-up
Singapore Airlines cabin crew walk past check-in counters at Terminal 3 of Singaporeu00e2u20acu2122s Changi Airport August 20, 2013. u00e2u20acu201d Reuters pic

SINGAPORE, Feb 5 — The Competition Commission of Singapore (CCS) is seeking feedback on the proposed Strategic Alliance between Singapore Airlines Ltd (SIA) and Air New Zealand Ltd (Air NZ).

In a statement, CCS said it received a notification for decision on January 30, 2014, with regard to the proposed alliance between SIA and Air NZ.

The proposed alliance relates to the provision of international air passenger transport services, with a specific focus on the Singapore origin and destination (O&D) city pairs affected by the proposed alliance.

The notification is made in relation to Section 34 of the Competition Act which prohibits agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within Singapore.

The purpose of the proposed alliance is to improve the services offered by the Parties by, inter alia, among other things, expanding the Parties’ networks through code-sharing and offering a wider choice of journey options to passengers.

It is also to provide passengers with greater network and loyalty benefits than would be currently available under existing arrangements; and provide service enhancements for passengers such as seamless transfers, improved access to lounge facilities, improved recovery times in the event of a disruption, and improved benefits accrual and redemption by members of each party’s respective frequent flyer schemes when travelling on the other Party’s services.

The parties envisage that the Proposed Strategic Alliance will result in significant consumer and economic benefits, and efficiencies.

Both Air NZ and SIA are members of the Star Alliance. — Bernama

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