Singapore Airlines And ANA Rumoured To Be Entering Joint Venture This Month
While the existing joint ventures between the two airlines include intercontinental routes, this updated partnership will focus exclusively on Asia for the time being.
In efforts to get ahead in the increasingly crowded Southeast Asian market, the joint venture is rumoured to go beyond the aviation companies' current code-sharing agreement, allowing the two airlines to coordinate schedules and fares within Asia, including service between Japan and Singapore—not unlike Japan Airlines and Malaysia Airlines, which entered a joint venture partnership last year.
The existing code-sharing agreement lets ANA and Singapore Airlines sell seats on the other airline’s flight paths; which allows ANA customers to book itineraries with connections in Singapore or to cities ANA doesn’t fly to, without having to buy a separate ticket.
However, code-sharing does not allow carriers to adjust flight timetables to make multi-airline itineraries and connections easier nor coordinate fares to reflect demand. Without a closer partnership, this would be considered an act of collusion and is banned under antitrust law.
The partnership marks ANA’s first joint venture with an Asian partner, and its third overall after entering into partnership with fellow Star Alliance members, United Airlines (to the US) and Lufthansa (to Germany). While both ANA and Singapore Airlines will reap benefits from the partnership, Singapore Airlines served over 20 million passengers in 2018, double ANA’s total; and more than any airline in Southeast Asia.
Should the partnership go through, airline passengers can expect even more flight options in terms of schedules and a more consistent customer experience across both Singapore Airlines and ANA.