There is a conditional approval between Malaysia Airlines and Singapore Airlines.
The Competition and Consumer Commission of Singapore (CCCS) allegedly gave conditional permission to a collaboration deal between Malaysia’s and Singapore’s flag carriers yesterday.
The agreement was signed by both airlines in 2019 and was conditionally passed yesterday after the CCCS completed an evaluation and accepted a set of “proposed obligations” from both airlines, according to the Singapore-based news organisation Straits Times.
According to reports, the deal between Malaysian Airlines (MAS) and Singapore Airlines involves sales and marketing coordination, revenue sharing, and code-sharing.
The carriers can sell seats on one other’s flights under a code-share arrangement.
The airlines agreed that their agreement would be reviewed by the CCCS after flights on “overlapping direct routes” between Singapore and Malaysia showed evidence of returning to pre-pandemic levels of activity, according to the Straits Times.
Flights between Singapore, Kuala Lumpur, and Kuching are an example of overlapping direct routes.
Additionally, it was suggested that various other indicators would be used to assess the signals of increased aircraft activity.
Meanwhile, the CCCS was quoted as noting that, while it acknowledged concerns raised by third parties, the commitment made by the two airlines would allow for a more thorough review of these concerns once the aviation industry had recovered.
According to reports, these issues include the industry’s competitiveness.
Low-cost carriers Firefly and Scoot — MAS’ sibling airlines and a subsidiary Singapore Airlines, respectively — are apparently included in the arrangement.
