Mr Lee Lik Hsin, Tigerair's group chief executive officer, said: "Besides allowing us to further strengthen our alliance with Scoot, this development will also empower both Scoot and ourselves to deliver even greater flexibility and value to our customers through the coordination of schedules and routes."
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Here is the press release from the Competition Commission of Singapore:
The Competition Commission of Singapore ("CCS") has cleared the notification for decision received from Scoot Pte. Ltd. ("Scoot") and Tiger Airways Singapore Pte. Ltd. ("Tigerair Singapore") (together, the "Parties"). The notification relates to the application of section 34 of the Com petition Act to the proposed cooperation between the Parties ("Proposed Cooperation").
The Proposed Cooperation would allow the Parties to coordinate in relation to, among others, scheduling, pricing, sales and marketing, service policies, and other matters to improve the overall quality of service offered to passengers on the Parties' respective operations.
After reviewing the submissions provided by the Parties and various stakeholders, CCS agrees with the Parties that they operate largely complementary networks of flights. Although some parts of the Proposed Cooperation would raise competition concerns, these would be offset by a resulting net economic benefit ("NEB") to Singapore passengers and therefore the Proposed Cooperation is excluded from the Section 34 Prohibition.
Examples of such benefits assessed by CCS are improvements in scheduling and efficiency on routes, expanded connectivity across the Parties' networks and expansion of the Parties' existing networks. In arriving at this conclusion, CCS considered the significance of fifth freedom air traffic rights between Singapore and various destinations within the Parties' networks in bringing about an increase in passenger numbers.
In an aviation market study on airline cooperation agreements concluded earlier this year, CCS found that previous cooperation agreements between airlines that were granted antitrust immunity by CCS have resulted in a NEB, particularly in terms of the increase in passenger numbers. Nonetheless, each airline cooperation agreement would need to be examined on a case-by-case basis.
Further information on the Parties and the analysis of the decision will be made available on CCS's public register at a later date.