SIA, Malaysia Airlines partnership gets green light with conditions on pricing

The Competition and Consumer Commission of Singapore (CCCS) has given conditional approval to a proposed commercial partnership between Singapore Airlines (SIA) and Malaysia Airlines, after accepting a set of commitments designed to address competition concerns.

The approval follows an application made in March 2023, with the scope of the cooperation later clarified in November to apply only to the two carriers’ full-service operations.

Following its assessment, CCCS found that the proposed coordination of price and capacity between SIA and Malaysia Airlines could restrict competition on the Singapore–Kuala Lumpur route.

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To address this, both airlines committed to maintaining existing seat capacities on the route and pledged to increase capacity based on performance targets. They will also submit annual data on their low-cost carriers and appoint an independent auditor to monitor compliance.

Between February and March this year, CCCS consulted industry stakeholders to assess the adequacy of the commitments. No objections were raised. The regulator also took into account ongoing market changes, including Jetstar Asia’s upcoming exit from the route.

CCCS approved the cooperation on 7 July, contingent on the accepted commitments being upheld.

"As Singapore becomes increasingly integrated with the global economy in a post Covid-19 world, competition in Singapore's aviation industry has intensified, with recent entries and exits in the market. Nevertheless, the JV can lead to airlines coming together to offer better connectivity and options for consumers," said Alvin Koh, chief executive of CCCS.

He added, "The proposed commitments offered by Singapore Airlines and Malaysia Airlines allows for flexibility to react to market developments and ensure that more flights will be added along the Singapore-Kuala Lumpur route as travel demand increases, which would translate to more travel options and better prices for passengers in the long run. CCCS will continue to monitor developments in this sector to ensure that competition can yield good outcomes for consumers."

The decision comes as CCCS expands its role to include consumer protection functions under the Competition (Amendment) Act 2025. From 1 July, CCCS assumes oversight of consumer product safety and legal metrology, previously managed by Enterprise Singapore, including the Consumer Product Safety Office (CPSO) and Weights and Measures Office (WMO). The consolidation positions CCCS as Singapore’s central agency for fair trading practices, product standards, and measurement accuracy.

As CCCS strengthens its regulatory oversight across the consumer landscape, players in the aviation space are also ramping up their brand and customer engagement efforts. Recently, Malaysia Airlines launched a new global campaign titled "Time for premium escapades", offering travellers exclusive business class fares across both domestic and international routes.

SIA, on the other hand, recently became the first major airline to partner with OpenAI. The collaboration will integrate advanced generative AI tools into the airline’s customer service channels and internal operations.

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