Competition watchdog seeks public feedback on SIA-Malaysia Airlines deal

The competition watchdog is seeking public feedback regarding the recently announced tie-up between SIA and Malaysia Airlines. The public can send their views on the deal to the Competition and Consumer Commission of Singapore (CCCS) until Dec 18. SIA announced an agreement with Malaysia Airlines on Oct 30 that would "significantly strengthen" the partnership between the two groups. It involves sharing revenue on flights between Singapore and Malaysia, expanding codeshare routes and participating in joint marketing activities to develop tourism. The CCCS will assess if the deal infringes section 34 of the Competition Act, which prohibits tie-ups that prevent, restrict or distort competition within any market in Singapore. SIA and Malaysia Airlines said that while they do provide overlapping routes between Singapore and seven Malaysian destinations, the scope of the CCCS analysis should focus on the overlapping direct routes between Singapore (Changi and Seletar Airports) and Kuala Lumpur (KL International and Sultan Abdul Aziz Shah Airports) and between Singapore (Changi) and Kuching (Kuching International Airport). They stated their deal is "unlikely" to be anti-competitive as the overlapping direct routes will "continue to face intense competition" from low-cost carriers and alternative modes of transport like cars and coaches.<br/>