SIA, Garuda ink MOU in 'wide-ranging commercial partnership'

SINGAPORE Airlines (SIA) C6L : C6L 0% and Garuda Indonesia have signed a memorandum of understanding (MOU) to explore a "wide-ranging commercial partnership" that provides customers additional options and improves their travel experience, the two national flag carriers said on Friday (Nov 26).

The scope of the partnership, subject to regulatory approval, includes the potential alignment of frequent-flyer programmes, joint marketing activities, and initiatives to promote inbound tourism into Indonesia.

"Both partners are also committed to finding new growth opportunities in the air-freight segment, as well as cooperation in maintenance, repair and overhaul activities," the parties said in a statement.

SIA and Garuda Indonesia reactivated their air-connectivity partnership arrangement between Singapore and Bali, Jakarta and Surabaya on Oct 1. Garuda Indonesia started flight network connectivity on SIA's services to London on the same day.

Garuda Indonesia will also code-share on SIA's flights to Mumbai from Jan 1, 2022, subject to regulatory approval.

The agreement on Nov 26 was signed by SIA chief executive Goh Choon Pong and Garuda Indonesia's president and chief executive Irfan Setiaputra. It comes a few days before the Nov 29 launch of a quarantine-free vaccinated travel lane between the two countries.

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Goh said the pact allows the parties to leverage each other's strengths and offer customers more options. "It would also enable us to work closely together to support initiatives that facilitate and grow tourism and economic activity as borders reopen," he said.

SIA and Garuda Indonesia have a "strong and long-standing relationship" that reflects warm bilateral ties between the two countries, he said.

Irfan expressed hopes that the commercial partnership will strengthen bilateral cooperation between Singapore and Indonesia.

"We are committed to supporting the acceleration of economic and tourism recovery by participating in ensuring the readiness of air-transport infrastructure, particularly in anticipation of the vaccinated travel lane programme between Indonesia and Singapore," he said.

SIA shares ended Friday down 3.81 per cent or S$0.20 at S$5.05.

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