The Competition Commission of Singapore has given the green light for the proposed cooperation between Scoot and Tigerair airlines, it said on Friday.
The clearance would allow both carriers 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," it said.
Scoot is a wholly owned unit of Singapore Airlines, which is also the largest shareholder of Tigerair.
Tigerair focuses on shorter-haul journeys, while Scoot mainly covers medium to long haul routes.
The two carriers first announced a partnership in October, 2012. Earlier this year, they sought clearance from the Competition Commission of Singapore for further cooperation.
The commission said that it has found after a review 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 to Singapore passengers," it said.
Examples of such benefits assessed by the antitrust watchdog include improvements in scheduling and efficiency on routes, expanded connectivity across the carriers' networks and expansion of their existing networks, it added. Endi
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