On 8 August 2014, the Competition Commission of Singapore (the "CCS") announced that it has cleared the proposed cooperation between Scoot Pte. Ltd. and Tiger Airways Singapore Pte. Ltd. (collectively, the "Parties"). The proposed cooperation, in improving the overall quality of service offered to passengers, would involve the Parties working together on matters such as scheduling, pricing, sales and marketing, and service policies.
The CCS agrees that the Parties operate largely complementary networks of flights. The CCS notes that although some parts of the proposed cooperation could raise competition concerns, these would be offset by net economic benefits to Singapore passengers. In arriving at its conclusion, the CCS considered the significance of fifth freedom air traffic rights between Singapore and various destinations within the Parties' networks in bringing about an increase in passenger numbers. Other benefits that the CCS also assessed included improvements in scheduling and efficiency on routes, expanded connectivity across the Parties' networks and expansion of the Parties' existing networks.
Allen & Gledhill was involved as Singapore antitrust counsel to the Parties in securing the clearance. This is the second airline clearance decision since the CCS market study on the airline industry in February 2014. The first such clearance decision was also secured by Allen & Gledhill LLP in April this year.
The following materials are available from the CCS website www.ccs.gov.sg: