Singapore’s competition watchdog gives green light to SIA-ANA cooperation for Singapore-Tokyo route

Singapore’s competition watchdog on March 21 said it has conditionally approved a proposed commercial cooperation between Singapore Airlines and All Nippon Airways (ANA) after accepting their commitments to not infringe competition laws. The decision comes 20 months after the Competition and Consumer Commission of Singapore (CCCS) received an updated joint application from the two airlines on providing flight services between the Republic and Japan. In assessing the proposal, CCCS noted in a statement that SIA and ANA have “substantial market shares” offering direct flights between Singapore and Tokyo, and have “sustained a high combined market share in recent years”. This is even as SIA and ANA are the main competitors on the Singapore-Tokyo and Tokyo-Singapore routes, CCCS noted, citing third-party feedback. “While there is evidence of expansion by an existing competitor in recent years, CCCS assessed that the impact on competition arising from the expansion is not conclusive,” the watchdog said. Significant barriers to entry and expansion also continue to exist, it added, making it difficult for both new and existing players to compete effectively with the two airlines. The carriers said their proposed cooperation would lead to several benefits. Among them is improved connectivity for both Singapore and Japan, with “consequential benefits” to the South-east Asian country’s aviation industry and tourism. The collaboration would also increase offerings for travellers while bringing “more competitive fares arising from the elimination of double marginalisation and better fare combinability”, the airlines said in their application.<br/>