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SIA and Lufthansa Get Green Light
for Take-Off
VOLUNTARY COMMITMENTS ACCEPTED
In clearing the proposed Joint
Venture (“JV”) between Singapore
Airlines Limited and Deutsche
Lufthansa AG, CCS has accepted
voluntary commitments from
both parties in December 2016.
Feedback from public consultation
showed that the price and capacity
coordination between the airlines
would raise competition concerns
on the Singapore-Frankfurt and
Singapore-Zurich routes, given that
SIA and Lufthansa are the only
TRANSPORT
THE COMMITMENTS
The voluntary commitments include, but are not limited to:
Increasing seat
capacity on the
Singapore-Frankfurt
and Singapore-
Zurich routes by an
additional specified
number of seats, by a
certain date.
Maintaining seat
capacity levels on the
Singapore-Frankfurt
and Singapore-Zurich
routes, at levels that
existed prior to the
proposed JV.
Appointing an
independent
auditor to monitor
compliance with the
above, and report
periodically to CCS.
Carrying a minimum number of Singapore passengers
on the Singapore-Frankfurt and Singapore-Zurich
routes, in each calendar year.
CASE TEAM MEMBERS
Terence Seah, Lim Wei Lu, Cindy Chang, Herbert Fung
two airlines that operate direct
flights on these two routes, with a
combined market share of more
than 80% for the sectors. CCS
believes that the commitments
from both parties will address
the competition concerns, and
that the proposed JV will provide
assurance that the benefits of the
JV to Singapore, in particular by
increasing passenger numbers
and tourists to Singapore,
would materialise.
In assessing the notification, the case team
had some competition concerns on a couple
of the routes but the voluntary commitments
offered by the parties to increase capacity on
the routes provided certainty that benefits
would be realised and thus mitigated those
concerns. Overall, passengers and the
Singapore economy should benefit from the
joint venture agreement.
MR TERENCE SEAH
Senior Assistant Director, Business & Economics Division
COMPETITION COMMISSION OF SINGAPORE
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