Australian Competition and Consumer Commission

12/03/2021 | Press release | Distributed by Public on 12/02/2021 15:51

ACCC proposes to re-authorise Singapore Airlines and Lufthansa's alliance

The ACCC proposes to reauthorise Singapore Airlines and Lufthansa to continue to coordinate on the provision of air passenger services on routes between Singapore Home Markets (in Asia and Oceania) and Lufthansa Home Markets (in Europe). The ACCC has authorised these arrangements since 2016. Singapore Airlines and Lufthansa propose to expand the number of countries which they coordinate operations between by an additional 3 countries in Asia and 30 countries in Europe.

The ACCC considers that the coordination is likely to result in public benefits in the form of an enhanced product and service offering, and cost savings and efficiencies. There is unlikely to be detriment to the public, with strong competitors remaining on the routes in question.

Authorisation provides businesses with legal protection for arrangements that may otherwise risk breaching the law but are not harmful to competition and/or are likely to result in overall public benefits.

The ACCC proposes to grant re-authorisation until for a further five years.

The ACCC has also granted interim authorisation to enable Singapore Airlines and Lufthansa to continue to coordinate on the provision of scheduled air passenger services while the ACCC continues to consider the application as their existing authorisation is due to expire on 10 December 2021.

The ACCC now invites submissions in relation to this draft determination by 17 December 2021, before making its final decision.

Further information about the ACCC's draft determination is available on the ACCC public register at: Singapore Airlines Limited and Deutsche Lufthansa AG

Published date:
3 December 2021

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