CCCS Consultation on Singapore Airlines-Vietnam Airlines Joint Venture

Media Releases

CCS Consults on the Proposed Cooperation between Singapore Airlines Limited and Vietnam Airlines JSC

8 April 2026

(View media release in PDF)

1.        The Competition and Consumer Commission of Singapore (“ CCS ”) is seeking public feedback from 8 April 2026 to 22 April 2026 on the proposed commercial cooperation between Singapore Airlines Limited (“ SIA ”) and Vietnam Airlines JSC (“ VN ”) (the “ Proposed Cooperation ”).

2.        CCS accepted a joint application for decision from SIA and VN (collectively, the “ Parties ”) on the Proposed Cooperation on 6 April 2026. CCS is now assessing whether the Proposed Cooperation would infringe section 34 of the Competition Act 2004, which prohibits agreements or concerted practices by undertakings which prevent, restrict or distort competition within any market in Singapore.

The Parties

SIA

3.        SIA is a Singapore-based airline offering scheduled air passenger services to 79 destinations using a fleet of 145 passenger aircraft. SIA is a public company listed on the Mainboard of the Singapore Exchange Securities Trading Limited. The principal activities of SIA comprise (through itself and its subsidiaries) the provision of scheduled international air passenger and air cargo transportation services, engineering services, training of pilots, air charters, and tour wholesaling and related services.

4.          SIA also has a wholly-owned subsidiary, Scoot Pte. Ltd. (“ Scoot ”), which is a is a medium and long-haul low-cost airline based in Singapore operating flights to 76 destinations using a fleet of 53 passenger aircraft.

VN

5.         VN is the flag carrier of Vietnam, and its main business is the air transportation of passengers, cargo, baggage, parcels, postal items, and mail. VN currently operates 72 international routes to 39 destinations across 22 countries. On its domestic network, VN operates 40 routes to 22 destinations. In total, VN operates 112 routes to 61 destinations across its network. VN has one wholly owned subsidiary, Vietnam Air Service Company. VN also owns nearly 99% of Pacific Airlines Joint Stock Aviation Company (“ Pacific Airlines ”), which is a low-cost airline based in Vietnam operating flights to 9 destinations within Vietnam using a fleet of 3 passenger aircraft.

The Proposed Cooperation

6.        Under the Proposed Cooperation, the Parties will form a joint venture for services between Singapore and Vietnam. The Parties will cooperate on, among other things, scheduling, pricing, sales and marketing, and other commercial areas (including expanded codesharing cooperation and enhanced special prorate agreements), to create a metal-neutral alliance [1] for services between Singapore and Vietnam. The scope of the Proposed Cooperation will not include the Parties’ respective low-cost subsidiaries, i.e., Scoot and Pacific Airlines.

7.        The Parties have submitted that they overlap on five Origin-Destination routes (the “ Overlapping Routes ”) in the provision of international air passenger transport services between Singapore and Vietnam, both on a direct [2] and non-direct basis [3]. The Parties have also submitted that the direct Overlapping Routes form the relevant markets for the purposes of the competitive analysis of the Proposed Cooperation.

8.        According to the Parties, the Proposed Cooperation is unlikely to result in any adverse effects on competition as:

a.     The Parties will continue to face intense competition from low-cost carriers on the direct Overlapping Routes; and

b.     Existing low barriers to entry on the direct Overlapping Routes would facilitate entry by potential competitors.

9.        In addition, the Parties have submitted that subject to applicable competition laws, the Proposed Cooperation is expected to result in significant consumer and economic benefits, as well as efficiencies such as:

a.     An enhanced air travel product for services between Singapore and Vietnam;

b.     Expanded virtual networks of the airlines, thereby providing an increased number of service offerings to passengers;

c.     More competitive fares through the reduction of double marginalisation and better fare combinability;

d.     Scheduling benefits and time savings through reductions in transit time;

e.     Significant benefits to corporate account customers;

f.       Benefits for members of both airline’s frequent flyer programme (“ FFP ”), extending beyond Star Alliance FFP/ Skyteam FFP arrangements, [4] and improving existing bilateral cooperation; and

g.     Improved connectivity for both Singapore and Vietnam, with consequential benefits to both countries’ aviation industry and tourism.

Public Consultation

10.     CCS is inviting public feedback in relation to the Proposed Cooperation. The closing date for submissions is on 22 April 2026, 5 pm. CCS is interested to hear views on the impact of the Proposed Cooperation on competition. Public feedback can be provided via the official online form, or by emailing us at ccs_consultation@ccs.gov.sg. If the submission or correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

11.     More information on the public consultation can be accessed and downloaded from the CCS website at www.ccs.gov.sg under the section “Public Consultation”.

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About the Competition and Consumer Commission of Singapore

The Competition and Consumer Commission of Singapore (“ CCS ”) is a statutory board of the Ministry of Trade and Industry. Our mission is to make markets work well to create opportunities and choices for businesses and consumers in Singapore.

CCS administers and enforces the Competition Act 2004 and the Consumer Protection (Fair Trading) Act 2003, to guard against anti-competitive activities and unfair trade practices. Additionally, CCS ensures that businesses observe fair trade measurement practices by administering the Weights and Measures Act 1975, and ensures the supply of safe consumer goods by enforcing and implementing the Consumer Protection (Trade Descriptions and Safety Requirements) Act 1975 and its associated Regulations.

For more information, please visit www.ccs.gov.sg.

[1] A metal-neutral alliance refers to a cooperative arrangement between airlines in which partners jointly plan and manage capacity, pricing and inter-airline financial settlement, so that all participating airlines share equally in the profits, such that the airlines become effectively indifferent as to which plane or ‘metal’ carries a passenger.

[2] The overlapping direct routes comprise Singapore-Ho Chi Minh City and Singapore-Hanoi.

[3] The overlapping non-direct routes (i.e., where VN operates indirect services with one stop, and SIA operates direct services on its own or through Scoot) comprise Singapore-Da Nang, Singapore-Phu Quoc, and Singapore-Nha Trang.

[4] SIA is part of the Star Alliance while VN is part of the SkyTeam Airline Alliance.

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