SkyTeam alliance member Garuda Indonesia (GA) and Star Alliance member Singapore Airlines (SIA) on May 29 announced plans to enter into a joint venture (JV) arrangement that would deepen the cooperation between the two carriers, increase passenger capacity between Singapore and Indonesia, and offer customers more travel options between the two countries.

Subject to regulatory approvals, the proposed joint venture will cover routes between Singapore and Denpasar, Jakarta, and Surabaya.

This will expand on the Memorandum of Understanding (MoU) that the two airlines signed in November 2021.

It would allow Garuda Indonesia and Singapore Airlines to potentially coordinate schedules between Singapore and Indonesia, offering customers more seamless flight connectivity between the two countries and beyond.

The carriers will also explore the implementation of new initiatives, including joint fare products and an alignment of corporate programmes to enhance the value proposition to customers.

Garuda Indonesia and Singapore Airlines first started codesharing in 2010 on flights between Singapore and Denpasar in Indonesia.

In 2014, the agreement expanded to include flights between Singapore and Surabaya, as well as on flights operated by SIA’s former regional subsidiary, SilkAir.

In 2019, the two carriers expanded the codeshare agreement to include flights between Singapore and Jakarta.

The partnership deepened in 2021 when both carriers signed a Memorandum of Understanding (MoU) that built on their longstanding warm ties, allowing both carriers to explore a wide-ranging commercial partnership that provides their customers with additional options and an enhanced travel experience.

The scope of the 2021 MoU includes the potential alignment of frequent flyer programmes, joint marketing activities, and initiatives to promote inbound tourism into Indonesia, subject to regulatory approval. Both carriers are also committed to finding new growth opportunities in the air freight segment, as well as cooperation in maintenance, repair, and overhaul activities.

Garuda has also expanded its codeshares with SIA, and is codesharing on SIA’s services to London, Mumbai, and Johannesburg

“With the existence of more than a decade of collaboration between these two national flag carriers, this joint venture agreement, as a further milestone of the partnership expansion initiative, will certainly strengthen the commitment between the two carriers simultaneously, delivering a seamless and valuable flying experience to both our customers across the globe,” commented Irfan Setiaputra, president and chief executive officer, Garuda Indonesia.

“This joint venture will be a win-win arrangement that elevates the long-standing partnership between Garuda Indonesia and Singapore Airlines. It reflects our firm commitment to grow the aviation markets in Indonesia and Singapore, facilitating a greater level of business and people connections and promoting both countries as regional tourism destinations. Our customers will also enjoy even more benefits, including an improved level of network connectivity, enhanced travel convenience, and additional fare options,” said SIA CEO, Goh Choon Phong.