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Thursday, April 17, 2014
SIA-Air New Zealand proposed alliance gets CCS nod
The Competition Commission of Singapore (CCS) has given the green light for the proposed strategic alliance between Singapore Airlines (SIA) and Air New Zealand to go ahead.
In a statement on Thursday, CCS said it finds that the proposed strategic alliance could raise competition concerns, but these would be offset by net economic benefits to Singapore.
Its decision followed a review of the submissions provided by the parties concerned and various stakeholders, including the Civil Aviation Authority of Singapore and Changi Airport Group.
Under the proposed tie-up announced in January, the two carriers plan to increase services between Singapore and New Zealand to tap the growing tourism traffic in the Asia Pacific and the Southwest Pacific markets.
It will allow Air New Zealand passengers to access codeshare travel on the SIA network to Europe, Africa and other parts of Southeast Asia.
In return, SIA customers can travel across Air New Zealand's domestic network and other Pacific destinations.
In response to Thursday's decision by the CCS, SIA said it is pleased that CCS has cleared the proposed alliance.
The strategic alliance remains subject to approval from New Zealand’s Minister of Transport.
SOURCE
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