The Competition and Consumer Commission of Singapore (CCCS) has conditionally approved the joint venture between Singapore Airlines and All Nippon Airways (ANA).
Singapore Airlines and ANA hold a significant market share between Tokyo and Singapore, making them primary competitors. Although the impact on competition due to business expansion was not deemed decisive, significant barriers to entry and business expansion were noted.
In their application, the companies advocated that improved connectivity would benefit Singapore’s aviation industry and tourism, along with offering travelers more itinerary choices, competitive fares, advantages to corporate clients, and expanded mileage benefits.
Based on feedback from third parties, CCCS concluded that the competition between Tokyo and Singapore would be restricted, and the claimed benefits by the companies were insufficient to outweigh competitive concerns. The companies were required to maintain the total seat capacity between Tokyo and Singapore at specified levels, report on the operations and supply of their subsidiary low-cost carriers (LCCs), and appoint an independent auditor to submit an annual report.
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