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The Competition and Consumer Commission of Singapore (CCCS) approved the commercial joint venture agreement between Garuda Indonesia and Singapore Airlines (SIA) on Friday, 5 July.
The approval enables the airlines to strengthen their existing partnership and delve into a wider range of mutually beneficial commercial initiatives for their respective nations.
Such initiatives include operating joint revenue sharing flights between the two countries, coordinating flight schedules to offer travellers more options and seamless connectivity between Singapore and Indonesia and beyond.
Both parties also hope to explore joint sales and marketing initiatives that provide greater value to their respective customers.
A working partnership
Prior to the approval of the commercial joint venture, Garuda Indonesia and SIA signed an agreement to deepen their partnership in May 2023.
Since then, the carriers have worked on several programmes, including giving GarudaMiles and KrisFlyer members the option to earn and redeem miles on codeshare routes. They have also embarked on joint marketing initiatives to promote tourism activities.
The airlines today codeshare on a wide range of flights, including between Singapore and Indonesian cities of Bali, Jakarta, Medan, and Surabaya, as well as on long-haul routes between Singapore and Johannesburg, London (Heathrow), and Mumbai.
Executives welcome approval
Garuda Indonesia president and CEO Irfan Setiaputra said: “We are very pleased to receive this approval, as it marks significant progress towards our commitment to enhance service quality as well as broaden both Garuda Indonesia and SIA’s networks through a deepening partnership. The joint venture initiative that we are preparing today has been one of the strategies to ensure extensive value creation for our loyal customers. Having regulatory approval as the first step in a commercial agreement will provide more opportunity for developing well-executed strategic ideas.’
Setiaputra also expressed hopes that the joint venture agreement could provide seamless services for passengers, offering more flight schedule options and ease in earning and redeeming mileage. The collaboration may likewise deliver concrete action to contribute to boosting tourism in Indonesia to support the country’s post-pandemic economic recovery.
SIA CEO Goh Choon Phong said: “The robust strategic partnership between Garuda Indonesia and Singapore Airlines has enabled us to broaden our codeshare services over the last few years, offering our customers more choices on flights. With the CCCS’s approval, we are poised to deepen our collaboration across a wider scope of commercial activities.
“Along with the ongoing work to strengthen the links between our frequent flyer membership programmes, this will provide our customers with even more options and enhanced value.”
Goh added that the partnership underscores both airlines’ commitment to improving connectivity between Indonesia and Singapore and beyond.
By doing so, Garuda Indonesia and SIA can boost both business and leisure travel while contributing to regional economic growth.
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