Market watchers view SIA-Air India’s commercial cooperation favourably

[SINGAPORE] Industry watchers view favourably the recently announced commercial cooperation of Singapore Airlines (SIA) with its 25.1 per cent-owned associate Air India that will allow the two airlines to improve connectivity between Singapore and India.

SIA’s brand premium is unlikely to be diluted as a result of the tie-up as both carriers continue to maintain their respective brands.

Lorraine Tan, director of Asian equity research at Morningstar, said it probably makes sense for SIA to be involved in the raising of Air India’s reputation, given the investment that SIA has sunk in.