Scoot and Tigerair proposed alliance cleared

The way looks clear for budget airlines Scoot and Tigerair Singapore to extend their partnership. According to both carriers, they have obtained the green light from the Competition Commission of Singapore (CCS) on Friday (Aug 8).

The two carriers have been granted anti-trust immunity, which will allow closer cooperation in scheduling, pricing, sales and marketing and other matters.

Scoot is a wholly owned unit of Singapore Airlines (SIA) while Tiger lists SIA as its largest shareholder. Tigerair focuses on shorter-haul journeys, while Scoot's emphasis is on medium to long haul routes. The two carriers first announced a partnership in October 2012.

Earlier this year, they sought clearance from the CCS for the alliance to enter a second phase. According to the CCS, both airlines operate largely complementary networks of flights.

The competition watchdog says although some parts of the proposed cooperation would raise competition concerns, these would be offset by resulting net economic benefits to Singapore passengers.

SOURCE