Scoot and Tiger Airways mulling anti-trust immunity application

Two airlines willing to seek regulatory approval to deepen joint services.

With Scoot and Tiger Airways Singapore announcing a Memorandum of Understanding which will lead toward "deep and wide-ranging cooperation," both firms acknowledged that such moves could snag in the face of Singapore's competition law.

"As the cooperation deepens in future, there could be a need for applications for anti-trust immunity, and this will be sought from the relevant regulatory authorities at the appropriate time as required," they said.

In a joint release, the two budget airlines said the initial phase of this partnership will see each carrier marketing joint itineraries between Phuket, Ho Chi Minh City and Kuala Lumpur, destinations served by Tiger; and Sydney and Gold Coast, served by Scoot. Customers may purchase a single itinerary for travel from Australia, via Singapore, to Tiger’s destinations.

The joint itineraries originating from Australia are available for sale from 2 October 2012 for travel from 15 October 2012 onwards. Itineraries originating from Asia will be available for sale and travel from 2 November 2012 onwards.

In this initial trial, customers can purchase flight itineraries originating from Australia to popular South East Asia destinations. They will be issued a single ticket that contains all flight details. Passengers will be entitled to 15kg check-in baggage allowance on the interline itinerary.

On arrival in Singapore, customers will have to pass through immigration and collect their bags before checking into the second leg of their flight.

In the later phase, customers will be able to purchase flight itineraries originating from South East Asia. The airlines will also enhance this service with a direct connection process. Customers will be able to proceed with their onward journey without passing through immigration and without having to retrieve their checked baggage.

“This is an exciting development,” said CEO of Scoot, Campbell Wilson, “Both carriers operate highly complementary networks, with Scoot focusing on medium-long haul routes of five or more hours, and Tiger focusing on shorter-haul journeys. Both airlines operate sideby-side at Singapore Changi Airport Terminal 2, and share a common philosophy of offering fuss-free service at unbeatable value.”

“With Tiger’s move to our new den at Changi Airport Terminal 2, it’s the perfect time to leverage the strength of our networks to our customers’ benefits,” said Tiger Airways Group CEO Koay Peng Yen, “Tiger Singapore operates up to 90 flights daily. The joint itineraries and new services that we will be rolling out will greatly expand the travel options for both Tiger and Scoot customers."