SIA, Garuda to deepen commercial partnership through proposed JV

SINGAPORE Airlines : C6L 0% (SIA) and Garuda Indonesia plan to deepen their commercial ties through a joint venture (JV) covering flight connectivity and other new initiatives, they said on Monday (May 29).

The proposed JV will cover routes between Singapore and Denpasar, Jakarta and Surabaya, subject to regulatory approvals, SIA and Garuda said in a joint statement. It builds on a memorandum of understanding (MOU) inked in 2021 between the airlines.

Garuda and SIA could potentially coordinate schedules between Singapore and Indonesia to boost flight connectivity. New initiatives include joint fare products and aligning corporate programmes.

Garuda president and chief executive Irfan Setiaputra said the deeper relationship between the two airlines could strengthen tourist flows between both countries.

“Our customers will also enjoy even more benefits, including an improved level of network connectivity, enhanced travel convenience, and additional fare options,” noted SIA chief executive Goh Choon Phong.

SIA and Garuda’s partnership dates back to 2010, when they first started codesharing between Singapore and Denpasar, Indonesia. This agreement was later expanded in 2014 to include flights between Singapore and Surabaya, along with flights operated by SilkAir – SIA’s former regional subsidiary.

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The codeshare agreement was expanded again in 2019 to include flights between Jakarta and Singapore. Garuda is also codesharing on SIA’s services to London, Mumbai, and Johannesburg.

Both airlines signed an MOU in 2021 to explore a “wide-ranging commercial partnership”. The MOU’s scope includes the potential alignment of frequent flyer programmes, joint marketing activities, as well as initiatives to promote inbound tourism into Indonesia – subject to regulatory approval.

Both airlines are also looking at new growth opportunities in the air freight segment and also when it comes to maintenance, repair, and overhaul activities.