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Singapore: Singapore Airlines, Lufthansa JV cleared

By  |  December 12, 2016

Singapore Airlines and Lufthansa have received the all-clear from the competition watchdog to jointly plan routes, schedules and fares.

The approval from the Competition Commission of Singapore, which came on Monday, also includes revenue-sharing on routes from Singapore to the European cities of Frankfurt, Munich, Dusseldorf and Zurich.

In February, SIA and Lufthansa had requested for permission to cooperate extensively on international passenger services between selected Asian and European points.

In assessing the application, the competition commission reviewed information provided by the airlines as well as feedback from third-parties in a public consultation.

Concerns were raised for two specific routes, Singapore-Frankfurt and Singapore-Zurich that only SIA and Lufthansa operate with direct flights.

With a combined market share of more than 80 per cent on the routes, the feedback from the public consultation was that the price and capacity coordination could lead to a cut in capacity and higher fares.

Full Content: The Straits Times

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