To Unlock A Joint Venture, Garuda Indonesia And Singapore Airlines Propose A Commercial Partnership Agreement.

A joint venture between Garuda Indonesia (GA) and Singapore Airlines (SIA) was announced. By doing this, the two airlines would be able to enter into commercial Partnership and provide consumers with more alternatives for travelling between Singapore and Indonesia.

Commerical Partnership and A Joint Venture Agreement.
© Garuda Indonesia | Garuda Indonesia President and CEO Irfan Setiaputra and SIA CEO Goh Choon Phong on 26th November 2021.

The proposed joint venture will operate routes between Singapore and Denpasar, Jakarta, and Surabaya, subject to regulatory approval. The Memorandum of Understanding (MoU) that the two airlines signed in November 2021 will be expanded upon in this.

Mr Irfan Setiaputra , President and Chief Executive Officer, Garuda Indonesia, explained,

“With this initiative, both airlines agreed to further explore more advantages for both our customers, allowing them to enjoy various flight schedules with enhanced value services within the networks of Garuda Indonesia and Singapore Airlines.” 

Mr Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said:

“It reflects our firm commitment to grow the aviation markets in Indonesia and Singapore, facilitating a greater level of business and people connections and promoting both countries as regional tourism destinations.”

Garuda Indonesia and Singapore Airlines Commerical Partnership. 

On flights between Singapore and Denpasar, Indonesia, Garuda Indonesia and Singapore Airlines began codesharing in 2010. The agreement was expanded in 2014 to include flights operated by SilkAir, SIA’s former regional subsidiary, between Singapore and Surabaya.

Airlines code
© Ecns.cn

The two airlines added flights between Singapore and Jakarta to their codeshare agreement in 2019. In 2021, both carriers signed a Memorandum of Understanding (MoU) that built on their long-standing warm ties and gave them the opportunity to investigate a wide-ranging commercial partnership that gives their customers more options and a better travel experience. This partnership grew in depth.

GA is now codesharing on SIA’s services to London, Mumbai, and Johannesburg in addition to expanding its codeshares with SIA.

Mr Irfan Setiaputra, added

“this deepening relationship may also strengthen tourist flows between Indonesia and Singapore,

“which makes it easier for international tourists to create their remarkable South East Asia journey .”

Mr Goh Choon Phong, said

“Our customers will also enjoy even more benefits, including an improved level of network connectivity, enhanced travel convenience, and additional fare options.”

Garuda Indonesia and Singapore Airlines Joint Venture Agreement

Subject to regulatory approval, the 2021 MoU covers the potential alignment of frequent flyer programs, joint marketing efforts, and initiatives to promote Indonesian inbound tourism. In addition, both companies are committed to collaborating on activities related to maintenance, repair, and overhaul as well as locating new growth opportunities in the air freight sector.

Garuda Indonesia freight sector
© Garuda Indonesia | Facebook

Garuda Indonesia and Singapore Airlines could be able to synchronise flight schedules between Singapore and Indonesia thanks to this. Customers would find it simpler to fly to and from Indonesia and other nations as a result.

In order to increase the incentive to customers, the carriers will also look at the implementation of new drives, such as shared passage goods and corporate project arrangements.

Mr Irfan Setiaputra, said:

“The joint venture agreement is also a part of our effort to improve our company’s performance through our network strategy by optimising our network through partnership with our strategic airline partners, especially Singapore Airlines.”

Mr Goh Choon Phong, Concluded that:

“This joint venture will be a win-win arrangement that elevates the long-standing partnership between Garuda Indonesia and Singapore Airlines.”

What do you think of Garuda Indonesia and Singapore Airlines Partnership Agreement? Let us know in the comments below!

 

 

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Samuel Ayobami Ojerinola
Samuel Ayobami Ojerinola
Aviation Reporter - With a deep background in travel including previous work for LoveHolidays, Omega and HRG, Samuel contributes news and analysis here at Travel Radar. Samuel also holds a BA degree in Travel & Tourism Management from the University of West London.
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