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Proposed Strategic Alliance between Singapore Airlines Limited and Air New Zealand Limited

Reference:

CCS 400/003/14

Notifying Parties:

The parties to the agreement are:

(1) Singapore Airlines Limited; and

(2) Air New Zealand Limited.

Notifying Date:

30 January 2014

Summary of transaction:

Note: The summary information posted on this Public Register on the nature and objectives is provided by the applicants. CCS makes no representation as to the accuracy or veracity of the summary information posted.

Singapore Airlines Limited and Air New Zealand Limited (individually, a “Party” and collectively, the “Parties”) have agreed to form an alliance (“Proposed Strategic Alliance”) on 16 January 2014. The Proposed Strategic Alliance relates to the provision of international scheduled air passenger services, with a specific focus on the Singapore origin and destination (“O&D”) city pairs affected by the Proposed Strategic Alliance. The Parties seek a decision from CCS that the Proposed Strategic Alliance will not infringe Section 34 of the Competition Act, Chapter 50B.

The purpose of the Proposed Strategic Alliance is to improve the services offered by the Parties by, inter alia,:

                i.     expanding the Parties’ networks through code-sharing and offering a wider choice of journey options to passengers;

              ii.     provide passengers with greater network and loyalty benefits than would be currently available under existing arrangements; and

             iii.     provide service enhancements for passengers such as seamless transfers, improved access to lounge facilities, improved recovery times in the event of a disruption, and improved benefits accrual and redemption by members of each Party’s respective frequent flyer schemes when travelling on the other Party’s services.

The Parties intend to achieve their objectives under the Proposed Strategic Alliance by, inter alia, enhancing their current code-share arrangements, harmonising service standards, coordinating flight schedules and aligning airport operations.

The Parties submit that the Proposed Strategic Alliance is expected to result in significant consumer and economic benefits, and efficiencies. These include:

                i.     potential increase in capacity offered on the Auckland to Singapore O&D city pair;

              ii.     enhance customer experience by ensuring a constant end-to-end product offering;

             iii.     better connectivity to points beyond each of Auckland and Christchurch and beyond Singapore;

            iv.     greater number of seats available in each fare class, including lower fare classes; and

              v.     reinforce Singapore’s status as an air-hub.

Decision

On 17 April 2014, CCS issued the parties with a Clearance Decision on their proposed alliance. The Grounds of Decision can be found here.

Please click here for the media release.