CCCS seeks public views on SIA and Garuda Indonesia’s proposed cooperation

The public consultation is open from 14 to 27 March 2024.

The Competition and Consumer Commission of Singapore (CCCS) will conduct a public consultation from 14 to 27 March 2024 to seek views on the proposed Singapore-Indonesia Commercial Cooperation Framework Agreement between Singapore Airlines (SIA) and Garuda Indonesia.

CCCS is studying whether the agreement would infringe section 34 of the Competition Act 2004, which prohibits agreements or concerted practices by undertakings which prevent, restrict, or distort competition within any market in Singapore.

Under the agreement, both parties will jointly work on scheduling, pricing, sales, marketing, and other commercial areas to establish a metal-neutral alliance between their services in Singapore and Indonesia.

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The commission will also assess Scoot and QG which are subsidiaries of SIA and Garuda respectively. 

SIA and Garuda have 10 overlapping routes in both direct and indirect air transport services in Singapore and Indonesia. Both parties also stated that the direct overlapping routes form the relevant markets for the purposes of the competitive analysis of their proposal.

The parties said that the agreement is “unlikely to result in any adverse effects” as they will continue to face intense competition from low-cost carriers on direct overlapping routes. The low barriers to entry of said routes also welcome potential competitors.