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SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 7:52 am

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.
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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 9:23 am

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.

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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 10:05 am

I was thinking the same Dalecary. It would be a pity to see another fine airline depart Australia but that is the story of modern aviation.

I also wonder if this will pave the way for Star membership. Star could do with a major middle-eastern/gulf carrier. And EK looks more likely to join Oneworld or maybe even Skyteam than star.
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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 10:09 am

How many A320's have GF crashed, 2 or 3 ??
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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 10:11 am


How many A320's have GF crashed, 2 or 3 ??

What does that have to do with this???????
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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 10:54 am

Hey Hkgspotter1,

The answer to your question is 1, and I agree with BA, what does that have to do with this thread?
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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 1:35 pm

SPA agreements between airlines are no big deal- any one here who has worked in the tariffs dept. can confirm this. It must have been a slow news day at the Straits Times!
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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 7:42 pm

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.
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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 7:45 pm

A second GF 320 was written off in a minor accident.

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RE: SIA Signs Deal With Gulf Air

Fri Jan 18, 2002 11:07 pm

I think SPAs are less common in Asia though, so perhas this is more significant. How frequently does GF fly into SIN?

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RE: SIA Signs Deal With Gulf Air

Sat Jan 19, 2002 12:43 am

Hi GF slies to Singapore 3x times weekly

Flt No. Days Dep Arr
GF 148 1,3,6 20:30 09:15(+1) A340-300 Nonstop

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