Singapore Airlines And Garuda Indonesia Backed Approval For A Joint Venture.

The joint venture agreement signed in May 2023 would allow Garuda Indoensia and Singapore Airlines to collaborate more extensively on various commercial activities.

These include operating joint revenue-sharing flights amidst the two countries, coordinating flight schedules to offer travellers more options and seamless connectivity, and launching joint sales and marketing initiatives to enhance customer value.

Garuda Indoensia and Singapore Airlines have received the green light from Singapore's Competition and Consumer Commission for their commercial joint venture agreement. This landmark approval paves the way for the two airlines to deepen their strategic partnership, promising significant benefits for carriers and the broader travel markets of Indonesia and Singapore.

Initially signed in May 2023, the joint venture agreement would allow Garuda Indoensia and Singapore Airlines to collaborate more extensively on various commercial activities. These include operating joint revenue-sharing flight schedules to offer travellers more options and seamless connectivity and launching joint sales and marketing initiatives to enhance customer value.

Since the start of the agreement, both airlines have been working on various initiatives, including enabling GarudaMiles and KrisFlyer members, their respective frequent flyer programs, to earn and redeem miles on codeshare routes and launching joint marketing campaigns to promote tourism. Currently, Garuda Indoensia and Singapore Airlines codeshare on multiple routes connecting Singapore with Indoensia cities such as Bali, Jakarta, Medan, and Surabaya, as well as on long-haul flights to destinations including Johannesburg, London, and Mumbai. Irfan Setiaputra, CEO of Garuda Indoensia, expressed his satisfaction with the approval. "We are very pleased to receive this approval as it marks significant progress towards our commitment to enhancing service quality and expanding our network through this deepening partnership. This joint venture will provide extensive value creation for our loyal customers," he said.

He also highlighted that the collaboration would offer passengers seamless services with more flight schedule options and easier mileage earning and redemption. He also emphasised the joint venture's potential for boosting Indonesian tourism and supporting the after-pandemic economic recovery. Goh Choon Phong, the CEO of Singapore Airlines, echoed these sentiments. "The robust strategic partnership between Garuda Indoensia and Singapore Airlines has enabled us to broaden our codeshare services over the last few years, offering our customers more flight choices. With the CCCS approval, we are poised to deepen our collaboration across a wider scope of commercial activities," he said.

Phong included that the enhanced partnership would improve connectivity between Indonesia and Singapore, benefiting business and leisure travellers and contributing to economic growth. The approval of the commercial joint venture between Garuda Indonesia and Singapore Airlines marks a prominent step in improving connectivity and service quality between Indonesia and Singapore. This collaboration is expected to provide more excellent value to customers, promote tourism, and support economic growth in the post-pandemic era.

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