KUALA LUMPUR, May 11 — A partnership agreement between the flag carrier airlines of both Malaysia and Singapore was reportedly given a conditional approval by the Competition and Consumer Commission of Singapore (CCCS) yesterday.
Singapore-based news organisation Straits Times reported last night that the agreement had been signed by both airlines in 2019, and was conditionally passed yesterday after the CCCS conducted an assessment and accepted a set of “proposed commitments” from both airlines.
Reportedly, the agreement between Malaysian Airlines (MAS) and Singapore Airlines includes collaboration in terms of sales and marketing, as well as revenue sharing, and code-sharing.
A code-share agreement allows for the carriers to sell seats on each other’s flights.
Straits Times also reported that the commitment undertaken by the airlines was that their agreement was subject to review by the CCCS, once flights within “overlapping direct routes” between Singapore and Malaysia showed signs of returning to pre-pandemic levels of activity.
An example of such overlapping direct routes was given as flights between Singapore, Kuala Lumpur and Kuching.
Additionally, it was reported that the signs of recovery of flight activity would be measured by several different indicators.
Meanwhile, the CCCS was reported as saying that although it noted concerns raised by third-parties, the commitment undertaken by the two airlines would allow for increased assessment of these concerns once there was sustained recovery in the aviation industry.
These concerns reportedly include impact on the competitiveness of the industry.
The agreement also reportedly includes low-cost carriers Firefly and Scoot — the sister airlines of MAS and a subsidiary Singapore Airlines, respectively.