Singapore Airlines and Garuda Indonesia have announced plans to enter a new joint venture arrangement to deepen cooperation on certain routes. Today’s announcement builds upon more than a decade of partnership between the two South Asian carriers after the last expansion in November 2021.

Mr Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said,

“This joint venture will be a win-win arrangement that elevates the long-standing partnership between Garuda Indonesia and Singapore Airlines. It reflects our firm commitment to grow the aviation markets in Indonesia and Singapore, facilitating a greater level of business and people connections and promoting both countries as regional tourism destinations. Our customers will also enjoy even more benefits, including an improved level of network connectivity, enhanced travel convenience, and additional fare options.”

The details

The joint venture which is still subject to regulatory approval, seems to be quite promising for both carriers. While the specifics are still being ironed out, an SIA spokesperson told Simple Flying the partnership will be quite broad-ranging and cover a lot of business aspects.

The main objective is the expansion of capacity between Singapore and Indonesia by increasing the scope of a 2021 MOU which includes codeshares, alignment of frequent flier programs, and joint marketing campaigns. Under the new proposed JV, both airlines could collaborate on offering a broad range of flight choices to customers.

In a statement, SIA has said the proposed partnership will include routes between Singapore and the Indonesian cities of Denpasar, Jakarta, and Surabaya. Passengers will have seamless connectivity between the mentioned destinations and could also book itineraries beyond Singapore and Indonesia, taking advantage of both carriers’ international networks.

It is worth noting that SIA or Garuda Indonesia have not listed the international connections offered as a result of this JV. When asked about more details, an SIA spokesperson told Simple Flying,

“We are at the preliminary stages of discussion, and will share information, if any, at an appropriate time.”

SIA and Garuda Indonesia

Both South Asian carriers first started codesharing on flights between Singapore and Denpasar more than a decade ago in 2010. A few years later in 2014, the initial agreement was expanded to include another route (Singapore – Surabaya), and flights operated by former SIA subsidiary SilkAir were also added. Another route, Singapore – Jakarta, was added to the partnership in 2019.

A major development came in 2021 when both carriers signed a Memorandum of Understanding (MoU) further expanding ties. The MoU allowed closer alignment of frequent flier programs and potentially finding new opportunities in air freight movement as well.

It will be interesting to see the result of this newly proposed joint venture and how it benefits customers of both airlines. Simple Flying will continue to report on the developments, as and when they are announced.

What do you make of this new Joint Venture announcement from Singapore Airlines and Garuda Indonesia? Please let us know your thoughts in the comments.

• 

  Singapore Airlines

  IATA/ICAO Code:

  SQ/SIA

  Airline Type:

  Full Service Carrier

  Hub(s):

  Singapore Changi Airport

  Year Founded:

  1972

  Alliance:

  Star Alliance

  CEO:

  Goh Choon Phong

  Country:

  Singapore

• 

  Garuda Indonesia

  IATA/ICAO Code:

  GA/GIA

  Airline Type:

  Full Service Carrier

  Hub(s):

  Jakarta Soekarno-Hatta International

  Year Founded:

  1949

  Alliance:

  SkyTeam

  CEO:

  Irfan Setiaputra

  Country:

  Indonesia