Singapore Airlines Ltd. and PT Garuda Indonesia are seeking to deepen ties with a commercial pact to coordinate on fares and flight schedules, the carriers announced Monday.
Singapore’s flag carrier and Indonesia’s main airline said the arrangement, which expands on a memorandum of understanding the two signed in November 2021, will likely cover routes between Singapore and Denpasar in Bali, Jakarta, and Surabaya, a port city in Java.
The arrangement also envisages the implementation of new initiatives, including joint fare products and corporate programs.
The deepening ties, which are subject to regulatory approvals, are a win for Singapore Airlines as the city-state’s carrier widens its influence across Southeast Asia at a time many of the region’s other airlines are still recovering from the financial stresses of Covid.
Singapore Airlines struck a similar arrangement with Malaysia Airlines in November last year, and another via a strategic partnership with Thai Airways International Pcl in December.
The partnerships will funnel ultimately more passengers from the region onto Singapore Airlines’ long-distance flights between Europe and Asia, reinforcing its role as Southeast Asia’s dominant carrier.
They may also help solidify Changi Airport’s position as the prime aviation hub in the region, augmenting the case for the massive new Terminal 5, which is expected to begin construction in 2025.
Garuda President and Chief Executive Officer, Irfan Setiaputra, hailed the agreement, saying the deal was linked to the Indonesian carrier’s efforts to boost its own performance.
Singapore Airlines’ CEO Goh Choon Phong, said the relationship was also a firm commitment to increase flights between the two countries, and regionally.