Competition watchdog looking into cooperation between SIA and Vistara on flights to India

Vistara is a joint venture between SIA and Indian company Tata Sons and began operating flights in 2019. PHOTO: REUTERS

SINGAPORE - Singapore's competition watchdog is seeking public feedback on whether a proposed cooperation pact between Singapore Airlines (SIA) and Vistara for flights to and from India could adversely affect passengers.

The application for collaboration between the two airlines, submitted to the Competition and Consumer Commission of Singapore (CCCS) in November, could merge 16 routes that the two airlines now ply separately, including flights from Singapore to Indian cities including Mumbai, New Delhi, Kolkata and Hyderabad.

Concerns that the reduction in flights could affect ticket prices and seat capacity can be submitted to the CCCS till Dec 21.

Vistara is a joint venture between SIA and Indian company Tata Sons and began operating flights in 2019. The agreement between SIA and Vistara to work together on scheduling, pricing, selling, and marketing related to flights between Singapore and India was inked on Feb 13, before the coronavirus crippled the air industry.

The CCCS said the two airlines argued that the cooperation is unlikely to distort competition on the 16 routes in question due to the many existing competitors already plying them.

They said their passenger share, taken together, is still "not significant" compared to the overall number of passengers flying the routes on other airlines, and believed that it remains easy for potential competitors to enter the fray, given low barriers to entry to Singapore-India routes.

Amid the coronavirus, they also said cooperation increased the likelihood of a faster and more sustainable resumption of flights. Reduction of redundant costs could also make fares more competitive.

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