SIA signs landmark agreement with United Airlines

More travellers from the United States could soon be passing through Changi Airport to other parts of the region following a landmark agreement between Singapore Airlines (SIA) and US carrier United Airlines.

The move could also lead to an additional option for Vaccinated Travel Lane (VTL) flights to Singapore, and in the long term, pave the way for lower fares and more flights between Singapore and the US, said experts.

SIA had announced the partnership with United Airlines in an internal circular last month.

It said the carriers had signed a memorandum of understanding to work on supporting the resumption of connectivity between Singapore and the US.

"This milestone signals the start of a deeper partnership between both airlines, which could offer enhanced options and benefits for customers in line with the applicable laws and regulations," said SIA.

It said the move is part of its strategy to build partnerships with major airlines around the world, which would help increase connectivity to and through Singapore, and support the recovery of Singapore's air hub.

SIA said both airlines will aim to progressively code-share on each other's services from Singapore and the US.

The collaboration could extend to Scoot in subsequent phases.

The code-share arrangement refers to the practice where one airline sells seats on a flight operated by the other airlines. This allows travellers to benefit from the airlines' respective frequent flyer or corporate travel programme.

SIA told The Straits Times that specifics of the agreement will remain confidential, but more details will be announced in due course.

It said partnerships with other airlines enable SIA to gain access to additional destinations.

As at September, SIA has 34 code-share partners and access to more than 200 additional destinations through these partnerships.

Mr Mayur Patel, head of Asia at flight data and analytics provider OAG Aviation, said the agreement between SIA and United Airlines will allow the US carrier to restart its non-stop Singapore-to-San Francisco services.

This will provide an alternative choice for passengers looking to travel into Singapore under the Vaccinated Travel Lane scheme.

"United Airlines and SIA are fierce competitors across the Pacific but the new code-share could open the door to a broader and potentially game-changing partnership," Mr Patel added.

He said the partnership could also lead to a joint venture.

This joint venture, if it goes through, would support expanded capacity between Singapore and the US, said Mr Patel.

Mr Joshua Ng, director of Alton Aviation Consultancy, said the agreement will improve SIA's position in the US market.

He said travellers will be able to see the benefits of the agreement early next year, as international travel recovers.

"Travellers will be able to see and book an expanded set of itinerary options via the SIA reservation systems," Mr Ng added.

"These itinerary options will allow for more flexible connections, more direct and shorter routes via SIA's and United Airlines' non-stop flights between Singapore and the US, and also likely lower fares in the target markets."