Competition watchdog accepts capacity commitments by SIA, Lufthansa in proposed joint venture

Competition watchdog accepts capacity commitments by SIA, Lufthansa in proposed joint venture

The joint venture involves co-operation between SIA and Lufthansa regarding scheduled air passenger services between some European countries - specifically Germany, Austria, Switzerland and Belgium - and Singapore, Indonesia, Malaysia and Australia in Asia-Pacific.

A photo taken on November 25, 2010 shows a Singapore Airlines Airbus A380

SINGAPORE: The Competition Commission of Singapore (CCS) on Monday (Dec 12) said it has accepted voluntary commitments from Singapore Airlines (SIA) and Deutsche Lufthansa, in clearing their proposed joint venture.

The joint venture involves co-operation between SIA and Lufthansa regarding scheduled air passenger services between some European countries - specifically Germany, Austria, Switzerland and Belgium - and Singapore, Indonesia, Malaysia and Australia in Asia-Pacific.

These commitments include:

  • Maintaining seat capacity levels on the Singapore-Frankfurt and Singapore-Zurich routes at levels that existed prior to the proposed joint venture;
  • Increasing seat capacity on the Singapore-Zurich and Singapore-Frankfurt routes by an additional specified number of seats by a certain date;
  • Carrying a minimum number of Singapore passengers on the Singapore-Frankurt and Singapore-Zurich routes in each calendar year; and
  • Appointing and independent auditor to monitor compliance with the voluntary commitments and report periodically to CCS.

CCS had sought public feedback in April this year after receiving a notification of the proposed joint venture on Feb 5, 2016, in line with what competition commissions in other countries do in such cases.

With these commitments, CCS said it is of the view that the competition concerns that were previously identified on these routes will be addressed, and that the proposed joint venture will result in economic benefits to Singapore.

"In particular, the commitments would ensure an increase in capacity and frequency on flights between the Singapore–Frankfurt and Singapore–Zurich routes, and would lead to increased passenger numbers and tourists to Singapore, and accordingly benefit Singapore’s economy," CCS said.

Source: CNA/dl

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