SIA, Garuda to deepen ties and grow regional routes

Hong Kong – Singapore Airlines (SIA) and Garuda Indonesia are seeking to deepen ties with a commercial pact to coordinate on fares and flight schedules, the carriers announced on Monday.

Singapore’s flag carrier and Indonesia’s main airline said the arrangement, which expands on a memorandum of understanding that the two signed in November 2021, will likely cover routes between Singapore and Denpasar in Bali, Jakarta, and Surabaya, a port city in Java.

The arrangement also envisages the implementation of new initiatives, including joint fare products and corporate programmes.

The deepening ties, which are subject to regulatory approvals, are a win for SIA as the carrier widens its influence across South-east Asia at a time when many of the region’s other airlines are still recovering from the financial stresses of Covid-19.

SIA struck a similar arrangement with Malaysia Airlines

in November 2022, and another via a strategic partnership with Thai Airways International in December.

The partnerships will funnel, ultimately, more passengers from the region onto SIA’s long-distance flights between Europe and Asia, reinforcing its role as South-east Asia’s dominant carrier.

They may also help solidify Changi Airport’s position as the prime aviation hub in the region, augmenting the case for the

massive new Terminal 5,

which is expected to begin construction in 2025.

SIA’s chief executive Goh Choon Phong said the relationship was also a firm commitment to increase flights between the two countries, and regionally.

Garuda’s president and CEO Irfan Setiaputra hailed the agreement, saying that the deal was linked to the Indonesian carrier’s efforts to boost its own performance. BLOOMBERG