CCCS Issues Guidance Note for Airline Alliance Agreements

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Following a public consultation from 22 Jan 2018 to 12 Feb 2018, the Competition and Consumer Commission of Singapore has issued its finalised Guidance Note for Airline Alliance Agreements. Airline alliances are common in the aviation sector as a means for airlines to lower costs and compete more effectively by expanding their network structures and exploiting economies of scale. Whilst these alliances can enhance operational efficiencies and generate consumer benefits, they may raise competition concerns under Section 34 of the Competition Act which prohibits agreements that restrict competition in Singapore. This Update by Rajah & Tann Singapore LLP provides a summary of the Guidance Note.