Singapore Airlines (SIA) and Japan's largest airline All Nippon Airways (ANA) has announced the signing of a joint venture on Friday (Jan. 31).

The two airlines already have an existing codesharing partnership and are both members of Star Alliance.

However, the new joint venture promises to provide customers with more seamless flight connectivity between the two carriers, and access to a wider network.

More seamless access to flights, better corporate programs

According to a media release from SIA the joint venture, subject to regulatory approvals, will allow SIA and ANA to further strengthen their cooperation on services between Singapore and Japan, as well as in key markets such as Australia, India, Indonesia and Malaysia. 

The airline claimed that the joint venture would go beyond the existing partnership between the two airlines, which focused on codeshare flights, mileage programs, lounge access, and coordination on check-in baggage and connecting flights.

"Both airline groups would also be able to jointly offer customers more seamless access to flights in their respective route networks, a broad range of joint fare products, tie-ups between frequent flyer programs and aligned corporate programs to strengthen their proposition to corporate clients," said the airline.

Existing joint ventures

SIA currently has joint ventures with Air New Zealand, the Lufthansa Group and Scandinavian Airlines (SAS).

In addition, SIA has also applied to form a joint venture with Malaysia Airlines in 2019.

On the other hand, ANA currently has joint ventures with United Airlines and the Lufthansa Group.

If the proposed joint venture is approved, SIA will become ANA's third joint venture partner.

What does it mean to form a joint venture?

According to Business Traveller, a joint venture, which usually needs to be government-approved, allow airlines to jointly coordinate their schedules, sales, marketing and customer service, in order to provide more travel options than they would otherwise be able to.

This could mean the launch of new routes, which may not be viable if only operated by one carrier.

Joint ventures also allow customers to book connections on multiple airlines through just one booking channel, and enjoy reciprocal frequent flyer benefits such as lounge access, miles earning and redemption.

Top image from Singapore Airlines and ANA.