In a bid to stem the Gulf carriers' continued dominance in the Asia-Europe market, Star Alliance members Singapore Airlines (SQ, Singapore Changi) and Lufthansa (LH, Frankfurt International) have signed a wide-ranging partnership agreement that will see the two airline groups operating key routes between Singapore and Europe on a joint-venture basis, in addition to significantly expanding codeshare ties and deepening commercial co-operation.
Under the deal, flights between Singapore Changi and both Frankfurt International and Munich, as well as flights between Singapore and Zurich, are to be operated under revenue-sharing arrangements. The Singaporean carrier's new service to Düsseldorf, set to launch in July 2016 as the first new route announced by SIA with its incoming A350-900 fleet, will also be covered. The two airline groups also intend to co-operate in key markets in Europe, Southeast Asia and Australia, co-ordinating their respective schedules, offering joint fare promotions, aligning corporate programmes, and exploring enhancements to their existing frequent-flyer programme relationship.
Aside from covering Singapore Airlines and Lufthansa, the agreement includes Singapore Airlines' subsidiary SilkAir (SLK, Singapore Changi), and Lufthansa subsidiaries Austrian Airlines (OS, Vienna) and Swiss (LX, Zurich).
The expanded codeshare agreement will provide Singapore Airlines' customers with access to and from points in Austria, Belgium, Germany, and Switzerland, via the transfer hubs of Frankfurt, Munich and Zurich, with more than twenty new codeshare routes. Lufthansa and Swiss will in turn codeshare with Singapore Airlines and regional arm SilkAir on more routes serving destinations in Southeast Asia and the Southwest Pacific. Codeshare co-operation is expected to be expanded to more destinations in future.
Other elements of the agreement that require additional levels of regulatory approval may be implemented progressively through 2016.
