Kaiser_AU

From The Strait Times:

"SINGAPORE - Singapore Airlines (SIA) and German carrier, Lufthansa, have signed a wide-ranging partnership that will see the two airlines cooperate on key routes between Singapore and Europe.

Flights between Singapore and both Frankfurt and Munich in Germany, as well as flights between Singapore and Zurich, will be operated under revenue-sharing arrangements.

New SIA-operated flights between Singapore and Düsseldorf, Germany, which will be launched in July will also be covered under such arrangements, the two carriers said in a joint announcement on Wednesday.

The two airline groups also intend to co-operate in key markets in Europe, South-east Asia and Australia, co-ordinating schedules to provide customers more convenient connections between route networks.

Also in the pipeline are joint fare promotions and aligning corporate programmes to strengthen the proposition to corporate customers and exploring enhancements to existing frequent-flyer programme ties.

In addition to SIA and Lufthansa, the agreement includes SIA subsidiary SilkAir, and Lufthansa subsidiaries Austrian Airlines and Swiss.

The expanded codeshare ties will provide SIA customers with convenient access to and from points in Austria, Belgium, Germany and Switzerland, via the transfer hubs of Frankfurt, Munich and Zurich.

Lufthansa and Swiss will in turn codeshare with SIA and regional arm SilkAir on more routes serving destinations in Asia.

SIA chief executive Goh Choon Phong said the extensive partnership will bring about significant benefits to consumers.

"This is yet another example of how partnerships can result in more for our customers, as we can jointly provide benefits that we would otherwise not be able to provide on our own," he added.

Mr Carsten Spohr, Lufthansa's chief executive, said: "By working even closer together, we can both offer even better connections and even better services."

http://www.straitstimes.com/singapor...ore-and-europe

http://www.swissinfo.ch/eng/lufthans...iance/41771376

Anyone have any thoughts on how this will pan out? ie. Would current SQ SIN-Europe flights still likely to be on SQ metal, or could we see these flights now being operated by LH, OS or LX metal?

lokijuh

No doubt a partnership of necessity to counter the rise and rise of the ME3, where the obvious competitive advantage is combined networks at either end coupled with a nice long-haul flight that isn't interrupted by a stop midway through the journey.

Thunderroad

Any guesses on what "exploring enhancements to existing frequent-flyer programme ties" could result in?

yewgene

Knowing SQ, probably none
We can probably predict yet another future thread here in this subforum that goes along the lines of "Why am I Denied *G privileges on my connecting MI flight from SIN?!"

lokijuh

Maybe a relationship with MI (in terms of earn, burn & status recognition) similar to that offered in partnership with VA?

Ability to upgrade on broader range of fares than currently?

Solitaire access to FCL in FRA, HON CIRC access to FCL in SIN? Haha...

Coathanger

I'd settle for FCT/FCL access for SQ R/F, though the Porsche transfers would be a bit much to hope for.

nichojo

Flying in F FRA-SIN next August. If I got to visit the FCT in FRA I would be in hog heaven. I've been once before and it is beyond amazing.

djjaguar64

Codeshare to me sounds more like a pricing monopoly.

jjjohn

that was what in my mind. increase profit margin.

lokijuh

At the end of the day, if carriers like SQ are still going to remain viable and competitive they need to start to do things like this, or they will suffer the (financial) fate of MH (or TG even). When you have three carriers with willing investors, that can connect all the major centres in Asia to most of the major centres in Europe with a single stop, and are reducing your profit to marginal levels on those routes, you've got to do something differently, especially given the number of destinations you can offer on your own is limited (and same for LH).

There's still plenty of competition between SE Asia and Europe, although perhaps now less at the premium end of the spectrum. The ones that spring to mind include QR, EY, EK, TG, AF/KL, TK, AI, GA, MH, BA and to a certain extent CX and CZ.

jjjohn

It is. SQ was responding very slow to the market change in the past few years. It had lost a huge market share to 3 ME on Kangaroo route, esp. to EK.

Rarely take SQ on long haul after relocating to Singapore. As their fare is always 30-50% expensive than others. TG got most of my business when I travel out of my own pocket. Often could get F with the price even lower than SQ J to Europe.

Only exception was my resent trip to LHR. It was a very last minute decision, and TG was just marginal cheaper than SQ.

djjaguar64

Yes, I have to agree, last year we needed to go to TPE from SIN and guess what we booked TG, which cost us S$600 each and received 100% mileage. SQ was I think about $900.

lokijuh

Initially I didn't use SQ much after relocating here either. But started getting sick of travelling via somewhere else (and as most of my travel is heading south travelling on TG is just not practical) , so have managed to do more SQ flights in recent times.

It's either using KF miles, or more a matter of booking them from somewhere else, with long long stopovers in SIN. Most recent is MEL-Japan return in economy with 4.5 month and 1 month stopovers in SIN in both directions. Best was ATH-MEL in business for about $4k SGD... with 1 month and 10 month stopovers in SIN, but alas that is now gone.

Kiwi Flyer

It is very normal for airlines to charge a lot higher fares out of their home markets than for other customers (which typically would need to connect).

E.g. in DXB EK fares are higher than competitors, in AKL NZ fares, etc.

jjjohn

Understand that, but always AF to CDG is cheaper than SQ, BA to LHR is also cheaper than SQ (well SQ F is much better than BA F)