Competition watchdog approves SIA and training firm's joint venture

The JV will offer pilot training in Boeing aircraft types.

The Competition Commission of Singapore (CCS) approved the proposed joint venture between Singapore Airlines Limited (SIA) and CAE International Holdings Limited (CAE) to form a commercial flight training centre for Boeing aircraft types.

According to a press release, the centre will offer three types of pilot training for B744, B777, B787, and B737MAX.

CCS said the JV, if carried into effect, will not lead to a substantial lessening of competition in the relevant markets.

Relevant markets that CCS covered include the provision of pilot training services for Boeing aircraft types in Asia and the supply of training devices, including simulation software, for the aircraft.

CCS concluded that CAE and SIA are not actual competitors at present, and thus, do not have a high combined share in the relevant markets.

The proposed JV would also likely result in an increase in the capacity made available to third parties both within Singapore and in the Asia Pacific region and could increase competition for the provision of pilot training services for the aircraft.

CAE does not appear to have the market power to restrict the supply of its training devices. Moreover, it has an interdependent relationship with its competitors, like airlines, trainers, and manufacturers.