Scoot-Tigerair alliance clinches anti-trust immunity from competition watchdog

The country’s budget carriers are joining forces.

More budget airlines are now struggling to stay afloat, and Singapore-based low-cost carriers Scoot and Tigerair have recently been granted an anti-trust immnunity (ATI) that will allow the airlines to boost passenger traffic by coordinating schedules, routes, and pricing.

In a joint release, the airlines revealed that the Competition Commission of Singapore (CCS) has granted the carriers the ATI, following their notification for decision to the CCS on 28 January 2014.

Both carriers operate highly complementary networks, with Tigerair focusing on shorter-haul journeys while Scoot’s emphasis is on medium-long haul routes of four or more hours. On relevant routes operated by both Tigerair and Scoot, the ATI will enable the airlines to coordinate schedules and pricing.

The ATI also allows for closer cooperation in other areas such as sales, pricing, scheduling and systems integration. Scoot and Tigerair have an existing interline cooperation and the ATI approval allows the airlines to build upon the current arrangements.

Taken together, Scoot and Tigerair Singapore operate a total of 33 aircraft, comprising 6 B777s and 27 A320/319s, serving a total of 46 destinations in 15 countries from Singapore and offer more than 450 weekly flights and about 169,000 seats every week.