Announcement

Collapse
No announcement yet.

SQ, LH Sign Joint Venture

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • SQ, LH Sign Joint Venture

    So apparently there was a bit more to the new DUS flight than just a new destination...

    http://www.singaporeair.com/jsp/cms/...s/ne151111.jsp

    SIA And Lufthansa Group Forge Extensive Partnership Involving JV On Key Routes

    “We are very pleased to have reached agreement for this extensive partnership, which will bring about significant benefits to consumers through enhanced connections and more codeshare destinations. Singapore Airlines has had longstanding ties to Lufthansa, which is an ideal partner with an excellent network and strong customer focus. This agreement deepens ties with the wider Lufthansa Group, providing a solid foundation for numerous commercial co-operation opportunities,”

    11 November 2015 (Joint Release With Lufthansa) - Singapore Airlines (SIA) and Lufthansa have signed a wide-ranging partnership agreement[1] 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.

    Flights between Singapore and both Frankfurt and Munich, as well as flights between Singapore and Zurich, are to be operated under revenue-sharing arrangements. New SIA-operated flights between Singapore and Düsseldorf, which are to be launched in July 2016, will also be covered under such arrangements.

    The two airline groups also intend to co-operate in key markets in Europe, Southeast Asia and Australia, co-ordinating schedules to provide customers more convenient connections between route networks, offering joint fare promotions, 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[2] 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, with more than 20 new codeshare routes. Lufthansa and Swiss will in turn codeshare with SIA 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.

    Some of the benefits of the agreement will be introduced in the coming months, such as the new codeshare services. Other elements of the agreement that require additional levels of regulatory approval may be implemented progressively through 2016.

    “We are very pleased to have reached agreement for this extensive partnership, which will bring about significant benefits to consumers through enhanced connections and more codeshare destinations. Singapore Airlines has had longstanding ties to Lufthansa, which is an ideal partner with an excellent network and strong customer focus. This agreement deepens ties with the wider Lufthansa Group, providing a solid foundation for numerous commercial co-operation opportunities,” said Singapore Airlines CEO Mr Goh Choon Phong.

    “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.”

    Added Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG: “We can look back already on a long and fruitful partnership with Singapore Airlines. And we’re now intensifying this close collaboration between two world-leading premium air carriers with a new joint venture that is in the best interests of all our customers, in Europe and in Southeast Asia. Because by working even closer together, we can both offer even better connections and even better services.”

    Mr Spohr continued: “Our intensified partnership with Singapore Airlines is an excellent addition to our global joint venture network, and is a cornerstone of our Asia Strategy. And all these strategic partnerships will help the Lufthansa Group further consolidate its leading position in all key markets.”

  • #2
    That's exactly what CAPA was calling Lufthansa and Singapore Airlines to do back in August this year!

    Gulf airlines continue Southeast Asia push. Should Lufthansa & Singapore Airlines respond with a JV?

    http://centreforaviation.com/analysi...th-a-jv-238555

    I am glad that this has come through and I hope this will allow LH and SQ to draw some ground back from ME3.

    Moreover, I would like to see Tigerair, Scoot, Germanwings and Eurowings being integrated as the result of this joint venture. Dusseldorf is hub for Germanwings and Eurowings, 2 LCC carriers. I think if SQ can interline with them at least or allow members to earn Krisflyer miles with them this will significantly increase the number of European destinations SQ customers can get to easily, thus increasing attractiveness for customers to catch SQ to Europe.

    On the other side, I would really love to see Miles & More customers able to earn and burn miles on Silkair flights, and perhaps a push for Austrian Airlines to fly to Singapore then connect to many other South East Asian destinations and resorts from Singapore.

    Comment


    • #3
      Originally posted by Metropolitan Airlines View Post
      Moreover, I would like to see Tigerair, Scoot, Germanwings and Eurowings being integrated as the result of this joint venture. Dusseldorf is hub for Germanwings and Eurowings, 2 LCC carriers. I think if SQ can interline with them at least or allow members to earn Krisflyer miles with them this will significantly increase the number of European destinations SQ customers can get to easily, thus increasing attractiveness for customers to catch SQ to Europe.
      I find it really interesting that MI is specified, which is not a member of *A, yet LH specifies only OS and LX which are already members of *A. Miles & More customers now have status/accrual recognised when flying MI it would seem, but Krisflyer members already had recognition of status on OS and LX, as well as earning *A miles.

      LH's decision to strip DUS of all destinations except EWR, FRA and MUC means that residents in the area have no choice but to fly a LCC or fly via FRA or MUC. And as you rightly point out, no connections can occur out of DUS which would earn miles or recognise status. Elite Gold passengers would have to be told at their point of departure that their extra baggage allowance is void because it wouldn't be recognised by 4U or EW, unless they agree to apply the "majority of journey" rule, which from LH, I'd want in writing to show to overzealous 'rules enforcers' en route.

      I suspect this agreement has three functions- firstly to stay friends with LH while adding a third German port and stop them from trying to block approval, secondly to shore up connections for a future MUC flight that does not continue to MAN, and thirdly to make it easier to book the LH/LX/OS connections that have existed for many years but would add wildly differing price increments to the base fare (I've had anything from +5% to +450% when booking on the SQ website).

      It's good news for SQ and us, the passengers, as LH do have an excellent network out of FRA, MUC & ZRH, although I can't say I'm as convinced as the CEO of LH's "strong customer focus". LH could learn an awful lot from SQ!

      Comment


      • #4
        In addition to better connectivity and hopefully we will see some integration to 4U and EW, I hope SQ can launch VIE in the future and connect with OS.

        OS is particularly good at connections in Eastern, Central and South Eastern Europe; should demand justifies I think this will be a pretty good move.

        Comment


        • #5
          This has been in the works for some time, and I'm glad they finally reached an agreement. I'm looking forward to the exciting network development opportunities the JV will enable in the years to come.

          Comment


          • #6
            I'd keep well away from LH for the foreseeable until they sort out their disputes with two different unions who keep coming out on strike.

            Comment


            • #7
              Originally posted by MAN Flyer View Post
              I'd keep well away from LH for the foreseeable until they sort out their disputes with two different unions who keep coming out on strike.
              …especially since it's been going on for 2+ years.
              HUGE AL

              Comment


              • #8
                I've just noticed something new on the SQ website.

                In the left-most column of 'Plan travel' there are now links to Intercity transfers including to LH/Deutsche Bahn's AIRail which will be available from FRA, MUC and soon of course, DUS.

                While FRA has an exclusive ICE station and DUS has a skytrain across to a limited selection of ICE trains that stop at the airport (DUS has two heavy rail stations as well as a soon to be built light rail connection), MUC would require passengers to travel on a local suburban train first, followed by an ICE. Not sure how well that will work out with ticketing and luggage...

                According to SQ's website: "Most importantly, you can rest assured that you’ll be travelling on trains that are always on time, all the time." They must have really believed the marketing spin from DB in that meeting!

                Comment


                • #9
                  SQ-LHG JV approved by CCS.
                  http://www.channelnewsasia.com/news/...a/3360854.html

                  I'm interested to see where the additional SIN-FRA capacity being promised will come from. I would think relaunching SIN-MUC on LH metal would be a greater priority.

                  Comment


                  • #10
                    Originally posted by ek&sq View Post
                    SQ-LHG JV approved by CCS.
                    http://www.channelnewsasia.com/news/...a/3360854.html

                    I'm interested to see where the additional SIN-FRA capacity being promised will come from. I would think relaunching SIN-MUC on LH metal would be a greater priority.
                    LH aren't really interested in operating long-haul out of any airport other than FRA. Their product out of FRA is very decent. What they operated as a "product" between MUC & SIN deserved to be taken over by an airline like SQ who knows how to do it properly.

                    Comment


                    • #11
                      I simply wouldn't want to fly LH long-haul if I can have SIA (or actually most other airlines) instead. They believe to be 5-star but are years behind in service.
                      And before extending any service or promoting any mutual agreements, they should simply get the existing coorporation going. Even as they're now both on Amadeus for some years now, it's still a contant "sorry we can't do that, this is an SQ booking/flight" from LH while SQ tells you "you'll need to check with LH on this".

                      Most recent example... SQ flight booked including the short connections from Berlin to FRA/MUC. Those under an SQ code share number but of course operated by LH. Then tried to register some sports luggage with LH (SQ can only do their own metal), but was told LH can't confirm that on their own metal because its booked under an SQ flight number. At the end, SQ had to reissue the ticket so that it showed the connections under LH numbers. Guess what the comments of the SQ agents on the phone were :-)

                      Comment


                      • #12
                        Tell the Germans that they are inefficient, they don't like to hear that... For added spice, tell them to consult the Dutch to help them sort out their problems!
                        God must have been a ship owner, he placed the raw materials far from where they are needed and covered two-thirds of the earth with water...

                        Comment


                        • #13
                          I'm hoping the implementation of this agreement will result in reasonable pricing when connecting to LH. Right now, despite the SQ website offering connections on LH flights to Spain the pricing tends to range from non-competitive to a total joke. 2k min for a return Y SIN-MAD booking and 9-10k for J.

                          There is no way they can compete with the ME3 at these rates. QR is typically available SIN-MAD for 1.5k in Y and 5-6k in J with a comparable product. SQ doesn't have any non-stop advantage so quite a steep difference to justify.

                          Comment


                          • #14
                            Originally posted by Spaniard View Post
                            I'm hoping the implementation of this agreement will result in reasonable pricing when connecting to LH. Right now, despite the SQ website offering connections on LH flights to Spain the pricing tends to range from non-competitive to a total joke. 2k min for a return Y SIN-MAD booking and 9-10k for J.

                            There is no way they can compete with the ME3 at these rates. QR is typically available SIN-MAD for 1.5k in Y and 5-6k in J with a comparable product. SQ doesn't have any non-stop advantage so quite a steep difference to justify.
                            Nothing has changed then! At least for me after years of insane prices to fly into DUS, now I can do it with SQ. Added bonus is not having to deal with transfers at FRA.

                            Comment

                            Working...
                            X