Following the signing of this agreement, both parties will submit an application to the Competition Commission of Singapore (CCS) for anti-trust immunity.
Approval would allow the airlines to build upon their existing interline cooperation, which currently enables passengers from outside Singapore to purchase itineraries involving the services of both airlines, for example Jakarta to Singapore (operated by Tigerair), and onward from Singapore to Tianjin (operated by Scoot).
The present cooperation mainly benefits travellers who live outside of Singapore, but the proposed enhancements will serve the interests of Singapore residents as well.
These could potentially include the joint operation, sales and marketing of parallel routes, which will offer customers increased flexibility and flight options. It could also include alignment of policies, conditions, pricing and scheduling, to pave the way for a seamless integration of systems and improved connectivity.
Commenting on the submission, Tigerair Group CEO Mr Koay Peng Yen said “Over the past year, Tigerair and Scoot have worked well together to provide joint itineraries to our customers. The market response has been good, and I look forward to bringing this partnership to even greater heights and providing more connectivity and convenience to our customers.”
Scoot’s CEO, Mr Campbell Wilson, added “Scoot and Tigerair are natural partners, operating largely complementary networks side-by-side at Changi Terminal 2. Our interline cooperation over the past year has revealed strong demand for joint itineraries from customers outside Singapore, and it’s clear there is similar demand from Singaporeans for greater alignment. We’re therefore excited at the potential CCS approval would unlock.”
The CCS process is expected to take a few months and include public consultation.
For SGX Interested Person Transaction declaration purposes, Tigerair is an associate of Temasek Holdings, which is the holding company of Singapore Airlines, the parent company of Scoot. Singapore Airlines owns 32.7% of Tigerair.