Singapore_Air From United Kingdom, joined Nov 2000, 13752 posts, RR: 18 Posted (13 years 5 months 2 weeks 6 days 17 hours ago) and read 2387 times:
Straits Times Extract
SIA signs new agreement with Gulf Air
It's lower fares for SIA flights to Middle East
By Rebecca Lee
SINGAPORE Airlines (SIA) passengers headed towards the Middle East can now hope to do so at prices that are much easier on their wallets. This is thanks to an agreement signed last week between SIA and Gulf Air.
Called the special pro-rata agreement (SPA), the alliance allows the two carriers to put passengers on each other's flights at a lower-than-industry price.
SPAs are discount agreements often used by airlines, giving carriers an incentive for greater cooperation. The agreement will also help SIA passengers to call on more destinations in the Middle East without having to tear their hair out about details, such as reservations and connecting flights.
For instance, SIA passengers flying to Middle East cities not served by SIA can now fly from Singapore to Dubai, then take connecting Gulf Air flights to other Middle-Eastern destinations.
And Gulf Air passengers wanting to travel to Asian and Australian cities from Bahrain can stop in Singapore to connect to SIA's flights to other parts of the region.
The airline president, who was in Singapore as part of a South-east Asian trip to familiarise himself with a region that had the 'greatest potential' for growth, said he hoped the agreement with SIA would, one day, lead to a code-share arrangement. Airlines in such arrangements sell seats on each other's flights and use the same flight numbers.
Dalecary From , joined Dec 1969, posts, RR:
Reply 1, posted (13 years 5 months 2 weeks 6 days 15 hours ago) and read 2314 times:
is this a signal that GF will terminate it's flights to Australia? They have been significantly downgraded already from 6/wk to 3/wk and are in dire financial straits. Makes sense to me for them to utilise SQ from Singapore to Australia and other Asian destinations.
Airzim From Zimbabwe, joined Jun 2001, 1325 posts, RR: 1
Reply 7, posted (13 years 5 months 2 weeks 6 days 5 hours ago) and read 2227 times:
You guys are overreacting. SPA's are very very common between all sorts of different airlines.
Most foreign airlines that fly into LAX or SFO have SPA's with almost every US carrier since they rely on them to transport passsengers to the gateway. CO for example has agreements with CI, CX, QF, NZ, PR, BR, etc. I would hardley call CO and CX partners or potential alliance partners.
Essentially in airline standard fare break-up, CX will nego a special rate to carry pax from EWR,CLE,IAH to LAX to connect with Cathay. This is a fixed rate per segment. If no SPA or other agreements are in place, then fare construction on a IAH-HKG sector would be very expensive and limit CX's ability to sell seats out of Houston to HKG. Plus CX would always lose out to US based carriers such as NW and UA (even CO now) from IAH-HKG because the flight would be on their own equipement and fares could be filed on a O&D basis rather then adding two non interlined airlines together which generally gives a much higher fare.
The SPA guarantees the ability to get transit passengers for long haul operators that is pretty much it.
Also to counter the alliance argument, all Oneworld airlines now must have straight rate prorates within the alliance rather than SPA's. Straight rate is essentially mileaged based rather than a special nego rate so the percentage that CX carried a pax from HKG to LAX which then connected on AA to DFW would be paid to each carrier based on the percentage milage across the whole O&D.
So rather than GF and SQ getting in bed together, I would say it is the opposite.