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Singapore clears Singapore Airlines, Lufthansa deal with conditions

Staff Writer |
The Competition Commission of Singapore (CCS) has accepted voluntary commitments from Singapore Airlines Limited and Deutsche Lufthans in clearing their proposed joint venture.




The commitments includemaintaining and subsequently increasing passenger seat capacity on the Singapore-Frankfurt and Singapore-Zurich routes; and carrying a minimum number of Singapore passengers on these two routes.

CCS is of the view that the competition concerns identified by CCS on these two routes will be addressed with these commitments, and the Proposed JV will result in net economic benefits to Singapore.

On February 5, 2016, CCS received a notification for decision with regard to the proposed JV which relates to the provision of international scheduled air passenger services between certain Asia/Asia Pacific countries (specifically Singapore, Indonesia, Malaysia and Australia) and certain European countries (specifically Germany, Austria, Switzerland and Belgium).

Under the Proposed JV, the Parties will cooperate in respect of pricing, inventory management, sales and marketing.

The proposed JV will also involve schedule coordination, capacity coordination and revenue sharing on the following routes involving non-stop or direct services: Singapore–Frankfurt; Singapore–Munich; Singapore–Dusseldorf; and Singapore–Zurich.


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