By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Sinagapore Airlines and Lufthansa to expand Joint Venture in Asia
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Sinagapore Airlines and Lufthansa to expand Joint Venture in Asia

Sinagapore Airlines and Lufthansa to expand Joint Venture in Asia

Giacomo Amati
Last updated: 7 April 2022 12:42
By Giacomo Amati
4 Min Read
Share
SIA A350 moments after taking-off. @ Andrea Ongaro / Travel Radar
SIA A350 moments after taking-off. @ Andrea Ongaro / Travel Radar
SHARE

Joint Ventures have been an efficient tool to leverage revenues on specific routes for quite some time now. The benefits of establishing a Joint Venture (JV) with a partner airline are diverse; Singapore Airlines and Lufthansa seem to be willing to further leverage this strategy to increase their revenues in Asia.

Lufthansa A350 moments before landing. @ Luke Sobiechowski / Travel Radar
Lufthansa A350 moments before landing. | © Luke Sobiechowski / Travel Radar

SIA and LH to seek Anti Trust Immunity (ATI) from Malaysa

Singapore Airlines and Lufthansa have applied to the Malaysian Aviation Commission (MAVCOM) to further extend their JV, thus significantly expanding their network in Europe.

The application submitted by the two airlines relates to cooperation in schedule coordination, capacity management, pricing, sales marketing, frequent flyer programs, and revenue sharing. MAVCOM had previously accepted a 3-years JV in September 2019 related to scheduled air services between the two airlines’ home markets, i.e., Asia (Singapore, Australia, Indonesia, Malaysia)  and Europe (Austria, Belgium, Germany, Switzerland).

As for now, the two airlines aim at adding 35 more cities to Lufthansa’s home market in Europe, including cities in the UK, France, Italy, Spain, and Portugal.

The two carriers sustaining the JV would not lead to any significant reduction in competition, given the presence of strong competitive forces linked to competing airlines (such as Gulf airlines) and the low barriers to entry and expansion on the routes covered by the proposed JV.

SIA A350 moments before landing @ Andrea Ongaro / Travel Radar
SIA A350 moments before landing | © Andrea Ongaro / Travel Radar

What do airlines need to establish a JV?

Airlines applying for a JV first need to discuss the topic of metal neutrality, i.e., the fact that it doesn’t matter which airline is actually flying a route between two countries. Indeed, both carriers will share the revenue on that particular route. In the above-mentioned JV case, metal neutrality means that it doesn’t matter if a passenger is flying Lufthansa or Singapore Airlines between Frankfurt and Singapore; the revenue on this route will be equally shared between SIA and LH.

Moreover, the airlines involved in JV have to cooperate in developing a harmonized network, one which enables the carriers to optimise their capacity, measured in Available Seat Kilometers (ASKs). More flights mean more people will likely fly with either one of the airlines’ members of the JV.

When in a JV, airlines will also work together to optimise revenue management and pricing of the tickets to attract the largest amount of passengers, who should pay the right amount of money, depending on their purpose of the flight and willingness to pay.

Lastly, the product and services offered by the two airlines must be aligned for the customers to be satisfied with whichever airline they are flying. To put it another way, a JV between a premium carrier and a low-cost carrier would never work.

What do you think of SIA and LH’s strategy to foster their JV in the Europe-Asia market? Let us know in the comment below! 

 

You Might Also Like

TAP Air Portugal reaches landmark number of passengers for flights from Portugal to Brazil
Qantas Resumes Flights to London After Two Year Absence
AirAsia CEO and Chairman Step Back
Air New Zealand Confirms New York Route Launch
Investigation Into Unpaid Import Duties On Private Jets In Nigeria
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Giacomo Amati
ByGiacomo Amati
Follow:
Aviation Reporter - Giacomo has been passionate about commercial aviation since his very childhood. Currently, he is pursuing a Master in Air Transport Management at the University of Surrey, UK. His expertise within the industry entails an internship with Emirates Airlines in Milan Malpensa airport and a bachelor's thesis on the financial status of the former Italian national carrier, Alitalia. Besides aviation, Giacomo loves foreign languages, German being his favourite one, and travelling.
Previous Article Non-EU Airlines Owe Compensation for Delays Non-EU Airlines Owe Compensation for Delays, EU Court Rules
Next Article rolls royce one of the most reputable companies in the world testing their ultrafan engine in derby Aviation Firms Nab Five Spots on World’s Most Reputable Companies 
Subscribe
Login
Notify of
guest

guest

0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

JFK Airport
A Traveler’s Guide to Fast Track Options at JFK Airport
Airlines Aviation
Person sat next to the window on a plane
Why Pilot Training is the Best Investment for Your Teen’s Future
Aviation Careers
Airbus A321 Air Astana P4-OAS
Air Astana to Expand Network in the Middle East and Asia
Airlines Aviation Route Development
Emrecan Ergin, Vice President, Middle East and Africa at PPG Group
Plaza Premium Group Appoints the New Vice President, Emrecan Ergin
Airports Aviation Careers
EasyJet aircraft
easyJet Launch Five-Star Luxury Holiday Package Collection
Airlines Aviation Route Development Travel
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up