Singapore Airlines proposes joint venture with Japan's ANA

SINGAPORE Airlines (SIA) and Japan's All Nippon Airways (ANA) on Friday signed a joint venture (JV) framework agreement, with a view to boost the Singapore and Japan air hubs and improve flight connectivity for passengers.

If given the green light by authorities, the proposed JV is expected drive passenger traffic and offer more flight options for customers.

The tie-up will see both carriers strengthening their cooperation on services between Singapore and Japan, as well as in key markets including Australia, India, Indonesia and Malaysia.

SIA and ANA will also be able to offer customers more access to their flights in their respective route networks, joint fare products, and tie-ups between frequent flyer programmes.

In addition, the two airline groups will align their programmes for corporate clients.

The proposed JV goes beyond SIA and ANA's existing partnership, which focuses on codeshare flights, mileage programmes, lounge access and coordination on check-in baggage and connecting flights.

The airlines are also Star Alliance members.

Yuji Hirako, president and chief executive officer (CEO) of ANA, said the latest tie-up will help the two carriers further differentiate themselves from competitors.

Goh Choon Phong, CEO of SIA, said the partnership will also give customers increased flight frequencies and travel convenience.

SIA will become the third airline JV partner for ANA, if the deal is authorised. ANA's other JV partners are US-based United Airlines and Germany's flag carrier Lufthansa Group.

Meanwhile, SIA has JVs with Air New Zealand, Lufthansa and Denmark's flag carrier SAS.

SIA has also applied to partner Malaysia Airlines to share revenue on flights, expand their codeshare routes, and participate in joint marketing activities. Singapore's competition watchdog on Dec 18 ended its public consultation on the proposed cooperation.