SIA eyes larger chunk of Europe market with new Lufthansa JV

Codeshare and commercial ties will be expanded.

The flag carriers of Singapore and Germany have inked a wide-ranging partnership agreement that will allow both airlines to expand codeshare ties, increase schedule coordination and launch joint fare promotions.

Under the agreement, SIA and Lufthansa will operate key routes between Singapore and Europe on a joint-venture basis.

Flights between Singapore and both Frankfurt and Munich, as well as flights between Singapore and Zurich, are to be operated under revenue-sharing arrangements.

SIA's newly-launched flights to Dusseldorf, to be launched in July 2016, are also part of these arrangements.

Both carriers will also cooperate in key markets in Europe, Southeast Asia and Australia by coordinating schedules and launching joint fare promotions.

Some of the benefits of the agreement will be introduced in the coming months, such as the new codeshare services. Other elements of the agreement that require additional levels of regulatory approval may be implemented progressively through 2016.

In addition to SIA and Lufthansa, the agreement includes SIA subsidiary SilkAir, and Lufthansa subsidiaries Austrian Airlines and Swiss