SINGAPORE / JAKARTA—Regulatory Approval Awaited for Joint Venture Between Singapore Airlines and Garuda Indonesia.

Singapore Airlines and Garuda Indonesia are preparing to enter a joint venture that would significantly bolster their existing collaboration and potentially augment air traffic between Singapore and Indonesia.

If given the green light by regulators, the proposed joint venture would allow both national airlines to synchronize their flight schedules between the two countries. The joint venture would encompass routes between Singapore and several Indonesian cities, including Jakarta, Surabaya, and Denpasar.

According to a joint statement by both airlines, "The carriers will further consider the introduction of new initiatives such as mutual fare products and the harmonization of corporate programs to amplify the value offering to our customers."

This proposal surfaces more than a year after both airlines penned a memorandum of understanding to explore expanded partnership opportunities, particularly additional codeshares. Under this memorandum, Garuda incorporated its code on Singapore Airlines' flights to several global destinations, including London Heathrow, Johannesburg, and Mumbai.

Furthermore, the airlines pledged to "seek out new growth avenues" in various sectors like air freight and Maintenance, Repair, and Overhaul (MRO) services.

Singapore Airlines and Garuda have a standing codeshare agreement dating back to 2010, which covers several flights between Singapore and Indonesia.

Garuda's CEO, Irfan Setiaputra, stated, "The joint venture agreement represents an integral part of our strategic efforts to enhance our company's performance. We aim to optimize our network through solid partnerships with our strategic airline allies, with a special focus on Singapore Airlines."

Goh Choon Phong, the CEO of Singapore Airlines, added, "[This partnership] signifies our steadfast commitment to nurturing the aviation markets in both Indonesia and Singapore. It aims to facilitate increased business and people-to-people connections and boost both nations as prime regional tourism destinations."

While Garuda is a member of the SkyTeam alliance, Singapore Airlines is a part of the Star Alliance.