The Competition Commission of Singapore (CCS) has formally granted its approval to a proposed joint-venture between Singapore Airlines (SQ, Singapore Changi) and Lufthansa (LH, Frankfurt International).

The two parties signed a wide-ranging partnership agreement in November 2015, aimed at expanding codeshare ties, aligning corporate programmes to strengthen the proposition to corporate customers, and deepening commercial cooperation in key markets in Europe, Southeast Asia, and Australia. In addition to Singapore Airlines and Lufthansa, the agreement also extends to SIA's subsidiary SilkAir (Singapore Changi), and Lufthansa's subsidiaries Swiss (LX, Zurich) and Austrian Airlines (OS, Vienna).

In its ruling issued last week, the CCS said it had approved the partnership following a series of concessions the Singaporean and German carriers made in order to assuage the regulator of antitrust concerns in several areas.

As such, the commitments include (i) maintaining and subsequently increasing passenger seat capacity on the Singapore-Frankfurt and Singapore-Zurich routes; and (ii) carrying a minimum number of Singapore passengers (i.e. passengers where the point-of-sale for the ticket is Singapore) on these two routes.

"The commitments would ensure an increase in capacity and frequency on flights between the Singapore–Frankfurt and Singapore–Zurich routes, and would lead to increased passenger numbers and tourists to Singapore, and accordingly benefit Singapore’s economy," the CCS said.

"Hence, CCS concludes that, as long as the commitments are complied with, the Proposed JV will result in net economic benefits to Singapore. CCS reserves the right to investigate the Proposed JV should the Parties fail to comply with their commitments."

Both Singapore Airlines and Lufthansa have hailed the CCS's decision as another step that will enable them to build an integrated alliance, with an expanded network and seamless travel connectivity for customers.

The joint-venture has already garnered approvals from the Australian Competition and Consumer Commission (ACCC).