SINGAPORE (Dec 12): The Competition Commission of Singapore has cleared the proposed joint venture between Singapore Airlines and Deutsche Lufthansa to cooperate on pricing, inventory management and sales of tickets on Europe to Southeast Asian routes

The two flag carriers have agreed to maintain and subsequently increase seat capacity on German routes from Singapore and carry a minimum number of local passengers.

The commission says after considering feedback from third-parties, it "finds that the commitments provided by the parties would be sufficient to mitigate the identified competition concerns and would provide assurance that the benefits of the proposed JV to Singapore would materialise."

Shares of SIA are down 2 cents at $9.74 likely due to higher crude oil prices.

By comparison, the Straits Times Index is down 0.5%.