Both also in a revenue-sharing agreement, which will support joint capacity growth, when implemented

 

SINGAPORE Airlines (SIA) and Indonesia flag carrier Garuda Indonesia have signed an agreement on Monday (May 20) 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 &ndash when launched &ndash will allow GarudaMiles and KrisFlyer members to earn and redeem miles on codeshare flights operated by both airlines. 

 

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 &ldquo significant step&rdquo towards plans for a proposed commercial joint venture arrangement that covers Garuda Indonesia and Singapore Airlines flights between Singapore and Indonesia. 

 

SIA and Garuda Indonesia announced last year they planned to enter into a joint venture arrangement 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.

 

Goh Choon Phong, chief executive officer of SIA said on Monday that the partnership with Garuda Indonesia will improve the connectivity between Indonesia and Singapore.

 

&ldquo 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,&rdquo he said.

 

&ldquo 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.&rdquo