Singapore Airlines and Air China have reached a major milestone in their cooperation by recently signing a memorandum of understanding (MoU) to establish a commercial joint venture. This agreement expands the existing codeshare partnership between the two airlines on flights connecting China and Singapore, within China, and beyond, while providing for coordinated flight schedules, common fare products, joint marketing initiatives, and revenue sharing.
The two airlines – both members of Star Alliance – began code-sharing on select flights as early as 2016. Today, they operate code-share flights on routes between Singapore and Beijing, Chengdu, Chongqing, and Shanghai. However, the new agreement is not merely an extension of the existing network; it aims to establish a much more integrated commercial framework covering schedule planning, pricing, loyalty programs and certain operational areas.
The new agreement signed between the two airlines marks a significant evolution in airline partnerships in the Asia-Pacific region. The two airlines are moving toward a more sophisticated joint venture framework, designed to transform connectivity, fare coordination, and network planning on one of the world’s busiest air corridors.
Specifically, a key focus of the agreement is on improving the coordination of flight schedules: by more effectively aligning departure and arrival times, the two carriers hope to reduce layover times, increase the efficiency of the network, and offer passengers a smoother transit experience.
The airlines also plan to expand their cooperation beyond the current routes between Singapore and Beijing, Chengdu, Chongqing, and Shanghai to potentially cover other routes between Singapore and mainland China, domestic Chinese routes, and destinations beyond both countries.
Toward enhanced loyalty:
One of the most closely watched aspects of this agreement concerns the integration of Singapore Airlines’ and Air China’s loyalty programs. Building on their long standing relationship as members of Star Alliance, the two carriers intend to deepen cooperation between their KrisFlyer and PhoenixMiles loyalty programs, which will allow members to enjoy enhanced rewards and more opportunities to earn and redeem miles when traveling on routes operated under their codeshare agreement.