Air India and Singapore Airlines plan joint business agreement for India–Singapore flights

Air India and Singapore Airlines are signing a joint business agreement to enhance connectivity and service offerings on flights between India and Singapore, subject to regulatory approvals and definitive agreements.
Air India and Singapore Airlines plan joint business agreement for India–Singapore flights
A What happened
Tata Group-owned Air India and Singapore Airlines are signing a joint business agreement to enhance connectivity and service offerings on flights between India and Singapore. The pact could include expanding both carriers' corporate travel programmes. The airlines said the agreement is subject to regulatory approvals and the signing of definitive agreements. The partnership is planned on the principle of aircraft neutrality, with revenue or profit sharing on select routes on a predetermined basis.

Key insights

  • 1

    Aircraft-neutral revenue sharing is central to the planned partnership: The planned partnership is based on aircraft neutrality, with revenue or profit shared on a predetermined basis on select routes, decoupled from which airline operates the flight.

  • 2

    Corporate travel programmes are a potential expansion area: The pact could include expanding both carriers' corporate travel programmes, described as a source of high-yield revenue for airlines.

Takeaways

Air India and Singapore Airlines are moving toward a revenue-sharing, aircraft-neutral partnership for India–Singapore routes, pending regulatory approvals and definitive agreements.

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