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Singapore: CCS finds promising results in airline joint ventures

By  |  March 18, 2014

The Competition Commission of Singapore is reportedly championing the effects of airliners’ joint ventures as its recent market study in the industry has found consumer benefits from the deals.

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    The study, commissioned by the CCS, looked at case studies from the Japan Airlines and American Airlines partnership, as well as the United Airlines, Continental Airlines and All Nippon Airways partnership. The CCS announced Tuesday that the study found the ventures can result in lower airfares, among other positive effects for consumers.

    The regulator acknowledged that joint ventures are inherently anticompetitive, however, often leading to price-fixing, market sharing or other similar behaviors. But, the CCS said, when the benefits outweigh such anticompetitive risks, the venture should be given antitrust immunity.

    The study was conducted by consultants ICF SH&E, according to reports.

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