Airline codesharing has been around for decades and is a highly effective way for airlines to offer their customers seamless access to expanded networks and destinations. The system has also helped many airlines get back on their feet post-COVID, when returning stored aircraft to service was hampered by a shortage of maintenance capacity, particularly in Asia-Pacific.

More choices for passengers

Singapore Airlines has led Asian carriers in the post-pandemic restart, carefully managing capacity to be ahead of demand but at a level that keeps load factors high. With its vast international network of more than 70 destinations through its super-hub at Singapore Changi Airport (SIN), Singapore Airlines is an ideal airline partner with many suitors.

In May this year, SIA and Garuda Indonesia signed an agreement to strengthen their ties and form a deeper commercial partnership. The two Asian carriers already have a codeshare arrangement but see scope for more commercial opportunities, such as offering reciprocal benefits for their frequent flyer members when traveling on both airlines.

While the airlines are in agreement, these types of commercial partnerships need the sanction of national competition regulators, who must balance the inherent anti-competitive aspects that often exist with the greater good of the traveling public. Those approvals can often drag on, but in this case, the Singaporean authorities have swiftly approved the deal.

A truly global network

On Friday, July 5, 2024, SIA and Garuda Indonesia (Garuda) announced they had received approval for the agreement from the Competition and Consumer Commission of Singapore (CCCS). Having received the approval, SIA and Garuda can now deepen their strategic partnership on a wide range of commercial activities that will benefit their customers and the interests of Singapore and Indonesia.

Singapore Airlines Group CEO Goh Choon Phong said the robust strategic partnership between Garuda Indonesia and Singapore Airlines has enabled the airlines to broaden its codeshare services over the last few years, offering customers of both airlines more choices on flights.

"Along with the ongoing work to strengthen the links between our frequent flyer membership programmes, this will provide our customers with even more options and enhanced value. This partnership underscores both airlines' commitment to improving connectivity between Indonesia and Singapore and beyond, boosting both business and leisure travel, and contributing to economic growth."

Garuda Indonesia has been the national flag carrier for more than 70 years, and after a tough time during the pandemic lockdowns, it has emerged as a leaner, more agile and profitable airline. It has rebuilt its network to cover more than 35 domestic and 15 international destinations, and operating in the largest domestic market in Asia will make it a strong partner for SIA when the new partnership becomes operational.

Garuda President and CEO Irfan Setiaputra said regulatory approval marks significant progress and, as the first step in a commercial agreement, will provide more opportunities for developing well-executed strategic ideas.

"We hope that this agreement can provide seamless services for passengers with more flight schedule options and ease in earning and redeeming mileage. Also, this collaboration may deliver concrete action to contribute to boosting Indonesian tourism activities, which will support the post-pandemic economic recovery progress."

Since signing the agreement in May, the two airlines have been developing initiatives including giving GarudaMiles and KrisFlyer members the option to earn and redeem miles on codeshare routes. They are looking at potentially operating joint-revenue flights between Singapore and Indonesia and beyond and have embarked on joint marketing to promote tourism in both nations.

Today, SIA and Garuda codeshare on a wide range of flights, including between Singapore and the Indonesian cities of Bali, Jakarta, Medan and Surabaya. The seamless codeshare connectivity extends to long-haul routes between Singapore Changi and Johannesburg, Mumbai and London Heathrow.