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Summary of transaction:
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Note: The summary information posted on this Public Register on the nature and objectives is provided by the Parties. CCS makes no representation as to the accuracy or veracity of the summary information posted.
Singapore Airlines Limited (“SIA”) and Deutsche Lufthansa AG (“LH”) (collectively “the Parties”) have entered into a joint venture arrangement (“Proposed JV”) relating to the provision of scheduled air passenger services between certain European Countries (specifically Germany, Austria, Switzerland and Belgium (the “LH Home Markets”)) and certain Asia/Asia Pacific countries (specifically Singapore, Indonesia, Malaysia and Australia (the “SQ Home Markets”)). The Proposed JV extends to services operated by SilkAir (Singapore) Private Limited (“MI”), Swiss International Air Lines AG (“LX”), and Austrian Airlines AG (“OS”), being airlines affiliated to the Parties.
The Proposed JV relates to the provision of international scheduled air passenger services, specifically, the supply of international scheduled air passenger transport services between the SQ Home Markets and the LH Home Markets. Cooperation between the parties is specific to services which have an origin in the LH Home Markets and a destination in the SQ Home Markets, or vice versa. Services that do not have both an origin and destination in the LH Home Markets and the SQ Home Markets are not subject to the Proposed JV. Similarly, services where the transit point is not within the LH Home Markets or the SQ Home Markets, and services involving sectors operated by a third party carrier (i.e. a carrier that is not SQ, MI, LH, LX, or OS), are not subject to the Proposed JV.
The Proposed JV contemplates cooperation in respect of pricing, inventory management, sales and marketing. In addition, and in respect of routes involving non-stop or direct services operated between the SQ Home Markets and the LH Home Markets (including services between Singapore – Frankfurt; Singapore – Munich; and Singapore – Zurich), the Proposed JV would involve schedule coordination, capacity coordination and revenue sharing.
The objective of the Proposed JV is to enhance passenger air services between the LH Home Markets and the SQ Home Markets. The Proposed JV is expected to channel more passenger traffic through Singapore, which will give rise to significant benefits to the travelling public with regard to the expansion of traveling options and services, increased network connectivity, better scheduling of services, and harmonised service offerings.
The Proposed JV is also expected to generate significant economic benefits to Singapore, including the improvement and consolidation of Singapore as the premier air hub in South-East Asia, and potential increases in tourism and other such benefits.
The Proposed JV is intended to be implemented as soon as the Parties receive the necessary legal and regulatory approvals.
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Decision
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On 12 December 2016, CCS accepted voluntary commitments from the Parties and cleared the Proposed JV.
Media Release
Annex A - full set of commitments from the Parties
Read the Grounds of Decision.
On 2 August 2023, CCCS commenced a further review of the Proposed JV in view of the Parties’ joint application to CCCS for decision under section 44(1) of the Act as accepted by CCCS on 9 December 2022 (the “2022 Application”). The 2022 Application indicates a significant expansion of the scope of the SQ-LH JV and consequently, CCCS has reasonable grounds for believing that there has been a material change of circumstance since it gave the 2016 Decision. Further details on the 2022 Application may be found here. CCCS’s decision dated 12 December 2016 continues to remain in effect until the further review is complete and a new decision is issued. CCCS’s further review does not amount to a release, waiver or suspension of the voluntary commitments provided by the Parties. The Parties are expected to continue to comply with the commitments provided to CCCS, or to comply with any conditions imposed by CCCS for the suspension of these commitments, until such time as a further decision is reached by CCCS.
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