CCCS says that it reviewed information provided by the applicants and third party feedback and identified some competition concerns. This includes the fact that SIA and ANA possess substantial market shares offering direct flights on the Singapore-Tokyo routes and have sustained a high combined market share in recent years.
However, CCCS assessed that the impact on competition arising from expansion is not conclusive.
SIA and ANA said that the proposed cooperation would lead to a few benefits including improved connectivity between Singapore and Japan, with consequential benefits to Singapore’s aviation industry and tourism, and significant benefits to corporate account customers and greater reciprocal frequent flyer benefits for members of SIA and ANA.
Shares in SIA closed flat at $6.80 on March 21.
