LONDON – Earlier this week saw Thai & Singapore Airlines sign a Memorandum of Understanding (MoU) to forge a new strategic partnership.
This will mainly be in the form of a codesharing arrangement between the two sides.
In the initial phase of codesharing, Thai and Singapore will codeshare each other’s flight services between Singapore and Bangkok.
Thai will also codeshare on Singapore’s services to Cape Town and Johannesburg as well as Houston, Los Angeles, New York’s JFK & Newark, San Francisco, Seattle, and Vancouver.
This deal is also subject to regulatory approval as well.
Goh Choon Phong, the CEO of Singapore Airlines, said the following on this agreement:
“SIA and THAI have had a close relationship for many years, which we aim to strengthen through this comprehensive agreement.”
“Both airlines have a loyal customer base, as well as extensive operations within South East Asia and around the world.”
“This is a win-win opportunity to support the growth of our respective hubs and enhance the options and service offerings for our customers.”
Also commenting on the deal was Suvadhana Sibunruang, Thai’s Acting CEO:
“THAI and Singapore Airlines have shared a long-term relationship, and I am glad that this cooperation between the two airlines will certainly cater to the demand of travelers between Thailand, Singapore, and beyond.”
“It will also enable the expansion of THAI’s network to more service points in the United States, Canada, South Africa, Europe, India, and South West Pacific routes.”
“The codeshare arrangements will greatly benefit our customers in a range of service areas, including the frequent flyer program, customer experiences, lounge access, and airport ground services.”
“The collaboration strengthens both the airlines’ networks as members of Star Alliance.”
Strong Benefits for Thai…
Given Thai’s limited long-haul network compared to Singapore Airlines, this is going to open up new revenue streams for the carrier, especially going into the U.S.
Such revenue streams could enable the carrier to invest in their own routes eventually and even include this in the new Singapore partnership.
As for Singapore, this would boost its presence in Asia even further than they already have, and it can definitely take advantage of revenues from Bangkok.
It’s going to be interesting to see how else this codeshare will develop and whether it will take more of a domestic focus as opposed to internationally.
It remains clear that Thai will stand to benefit significantly from this partnership, and as mentioned, it will be interesting to see where it goes next.
On the Singapore side, it will be more interesting to see what other destinations they could tap into on the Thai network.
For now, all eyes are on both sides to see how this is going to develop and whether this could be the beginning of a fruitful relationship between the two sides.