SIA and Garuda have also entered into a revenue-sharing agreement, which will support joint capacity growth when implemented. — The Straits Times
SINGAPORE: Singapore Airlines (SIA) and Indonesia flag carrier Garuda Indonesia have signed an agreement to explore revenue sharing arrangements for flights between Indonesia and Singapore, and to partner on their frequent flyer programmes.
The companies said in a joint media release that the frequent flyer partnership – when launched – will allow GarudaMiles and KrisFlyer members to earn and redeem miles on their codeshare flights.
The two airlines have also entered into a revenue-sharing agreement, which will support joint capacity growth when implemented.
The airlines said this marks a “significant step” towards plans for a proposed commercial joint venture arrangement that covers Garuda and SIA flights between Singapore and Indonesia.
SIA and Garuda announced last year they planned to enter into a joint venture that would increase passenger capacity between Singapore and Indonesia.
Subject to regulatory approvals, the proposed joint venture would cover routes between Singapore and Denpasar, Jakarta, and Surabaya, the airlines previously said.
SIA chief executive officer Goh Choon Phong said on Monday that the partnership with Garuda will improve the connectivity between Indonesia and Singapore.
“This will help to meet the increasing demand for air travel between the two countries and beyond, as well as facilitate the growth of tourism and economic activities,” he said.
“Furthermore, by deepening the synergies between our frequent flyer programmes, we can enhance the benefits for our loyal customers, offering them more opportunities to earn and redeem miles when travelling with both airlines.” — The Straits Times/ANN
