Scoot and Tigerair win anti-trust immunity for their alliance

Scoot (subsidiary of Singapore Airlines) (Singapore) and Tigerair (Singapore) have been granted anti-trust immunity by the Competition Commission of Singapore for their new alliance.

The two airlines issued this joint statement:

Singapore-based budget airlines Scoot and Tigerair Singapore (Tigerair) are pleased to announce that the Competition Commission of Singapore (CCS) has granted the carriers anti-trust immunity (ATI), following their notification for decision to the CCS on January 28, 2014.

The approval follows a thorough review by the CCS which included a public consultation. Both carriers operate highly complementary networks, with Tigerair focusing on shorter-haul journeys while Scoot’s emphasis is on medium-long haul routes of four or more hours. On relevant routes operated by both Tigerair and Scoot, the ATI will enable the airlines to coordinate schedules and pricing which promises to offer customers a better spread of flight choices, and thus greater flexibility when organising their itineraries.

The alliance will also enable Scoot and Tigerair to collaborate closely on connecting traffic via Changi airport, supporting the Singapore aviation hub and broader economy. Scoot’s customers from its network in China, such as Tianjin and Nanjing, will be able to enjoy fuss- free connections onto Tigerair’s extensive network in South East Asia and India. Conversely, Tigerair’s customers will have a greater choice of destinations currently served by Scoot’s medium haul operations.

Commenting on the ATI approval, Group CEO of Tigerair, Mr Lee Lik Hsin, said “We are extremely delighted to have been granted ATI by the CCS. Besides allowing us to further strengthen our alliance with Scoot, this development will also empower both Scoot and ourselves to deliver even greater flexibility and value to our customers through the coordination of schedules and routes. This is not just a positive development for Tigerair and Scoot – it is also win-win partnership between the alliance and our customers.”

Scoot’s CEO, Mr Campbell Wilson, said “We are very pleased that the CCS has granted immunity, in so doing recognising the value closer co-operation will bring to the residents, hub and economy of Singapore. We look forward to working more closely with Tigerair, building on the foundation already laid, to fully realise these benefits and bring even greater connectivity, choice and convenience for all our guests.”

The ATI also allows for closer cooperation in other areas such as sales, pricing, scheduling and systems integration. Scoot and Tigerair have an existing interline cooperation and the ATI approval allows the airlines to build upon the current arrangements.

Taken together, Scoot and Tigerair Singapore operate a total of 33 aircraft, comprising 6 Boeing 777-200s and 27 Airbus A320/319s, serving a total of 46 destinations in 15 countries from Singapore and offer more than 450 weekly flights and about 169,000 seats every week.

On the financial side, Tiger Airways Holdings Limited (Tigerair) reported an operating loss of $16.4 million (Singapore dollars) for the fiscal quarter ended June 30, 2014 (1QFY15), compared to an operating loss of $6.2 million recorded in the previous corresponding quarter (1QFY14).

Top Copyright Photo: Nik French/AirlinersGallery.com. Ex-Singapore Airlines Boeing 777-212 ER 9V-OTC (msn 28509) of Scoot departs from Tokyo (Narita).

Scoot: