Singapore Airlines and Scandinavian Airlines have signed a joint venture agreement to cover development of air services between Scandinavia and Singapore.
The CEOs of Singapore Airlines and Scandinavian Airlines, Goh Choon Phong and Rickard Gustafson, signed the joint venture agreement in Singapore on May 11.
Signing of the JV agreement follows the signing of a memorandum of understanding in January, covering routes between Singapore and Scandinavia.
According to the two Star Alliance carriers, the signing of the joint venture agreement means they can move forward to plan further actions within a wide-ranging partnership.
The partnership will go beyond existing codeshare ties to include the coordination of flight schedules, joint sales activities and enhanced network connectivity.
Scandinavian Airlines and Singapore Airlines will now seek regulatory approval for their planned joint venture from the competition authorities in Singapore and Europe.
The carriers expect the partnership to lead to growth in existing air services between Singapore and Scandinavia, and, subject to market conditions at the appropriate time, pave the way for a new route between Singapore and Stockholm.
SIA currently operates three weekly flights between Singapore and Copenhagen in a codeshare partnership with SAS.
“This agreement is a win-win for SIA and SAS, and benefits our customers by making air travel more convenient between Asia and Scandinavia,” says Goh. “We look forward to co-ordinating schedules to enable more seamless connections to points in Northern Europe, as well as Asia and Southwest Pacific, through our respective hubs.
Adds Goh: “When market conditions allow for it we also look forward to expanding frequency between Singapore and Copenhagen, and adding new destinations in Scandinavia.”
“We are pleased that the joint venture agreement is now signed and we can proceed with expanding our partnership and thereby also improve the service and benefits for Scandinavian travellers,” says SAS President and CEO Gustafson.
“Singapore Airlines will be a vital part of our Asia strategy and we look forward to jointly explore further opportunities in this exciting and important market,” Gustafson adds.