The Competition and Consumer Commission of Singapore (CCCS) has conditionally approved a proposed commercial cooperation between Singapore Airlines (SIA) and Malaysia Airlines, contingent on commitments aimed at preserving competition between Singapore and Kuala Lumpur.
The regulator announced the decision on July 7 following a review that began in March 2023 when the airlines formally submitted the proposed tie-up for assessment. The approval allows the two flag carriers to deepen their partnership under a joint venture (JV) structure, but only after CCCS accepted measures to address antitrust concerns.
At the center of the CCCS’s scrutiny was the potential impact of the partnership on the Singapore–Kuala Lumpur (SIN-KUL) route, one of Southeast Asia’s busiest international air corridors. The regulator found that coordination between the two full-service airlines on pricing and capacity could substantially reduce competition.
To mitigate these concerns, SIA and Malaysia Airlines have committed to maintaining pre-cooperation weekly seat capacity levels on the sector and pledged to increase capacity once certain performance metrics are met. The airlines will also provide annual reports on the operations of their LCC subsidiaries on the SIN-KUL route and appoint an independent auditor to monitor compliance.
The commitments were subject to a public consultation process from Feb. 11 to March 4, 2025. According to CCCS, no objections were raised by stakeholders. The regulator also considered recent market changes, including the planned permanent exit of Jetstar Asia from the SIN-KUL market, in determining that the commitments sufficiently addressed its concerns.
“As Singapore becomes increasingly integrated with the global economy in a post COVID-19 world, competition in Singapore’s aviation industry has intensified, with recent entries and exits in the market. Nevertheless, the JV can lead to airlines coming together to offer better connectivity and options for consumers,” CCCS CEO Alvin Koh says.
“The proposed commitments offered by Singapore Airlines and Malaysia Airlines allows for flexibility to react to market developments and ensure that more flights will be added along the Singapore-Kuala Lumpur route as travel demand increases, which would translate to more travel options and better prices for passengers in the long run.”
OAG Schedules Analyser data shows that Singapore Airlines operates nearly 23,000 two-way weekly seats on the SIN-KUL route, accounting for 20.9% of total capacity. Malaysia Airlines offers around 22,500 seats, representing a 20.5% share, while Scoot, SIA’s low-cost subsidiary, provides approximately 17,000 seats, giving it a 15.5% share.
AirAsia remains the dominant player with 27.6% of the market.
Other carriers on the route include Batik Air Malaysia with 8.3%, Jetstar Asia with 4.6%, and Ethiopian Airlines with 2.6%. However, Jetstar Asia is set to cease operations on July 31, which will reduce competition on the sector.
The JV between SIA and Malaysia Airlines builds on a collaboration first established in October 2019, when the carriers agreed to cooperate on scheduling, pricing, sales, marketing and codesharing to boost traffic between their home markets and beyond.
The CCCS granted conditional approval for the original proposal in May 2022, taking into account the market conditions during the pandemic. A key stipulation required the airlines to resubmit the agreement for reassessment once air travel demand recovered.
In March 2023, the carriers filed an updated application, followed by a revision in November that year to exclude their respective LCC subsidiaries—Scoot and Firefly—which were initially included in the 2019 agreement.
Related Content
