Singapore Airlines says Malaysia Airlines tie-up is ‘best’ approach amid hurdles in aviation mergers
- Southeast Asia’s airline industry is dominated by loss-making national carriers but domestic politics has made airline mergers a tough sell
- The SIA and MAS tie-up includes a revenue-sharing agreement and will offer frequent fliers on both airlines more benefits
“We did observe the consolidation taking place elsewhere [but] I am not holding my breath in our part of the world owing to various considerations. Many of the airlines involved here are national carriers,” said Goh, speaking at the airline’s 2019-2020 half-year financial results meeting on Wednesday.
Citing the MAS deal as the best approach in the meantime, Goh added: “I think until the regulatory environment in this part of the world allows for more liberal consolidation, this will be a good interim solution.”
The global trend towards airlines merging has not extended to Asia, where the domestic political considerations of national governments have made such cross-border mergers and takeovers less feasible, and remain confined within countries and territories.
On Monday, Anglo-Spanish International Airlines Group, which is one of Europe’s three largest groups, agreed on a US$1.1 billion deal for Spain’s Air Europa.
