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Singapore Airlines to launch Jakarta-Sydney, further intensifying SE Asia-Australia competition

Analysis

Singapore Airlines (SIA) will launch services from Jakarta to Sydney in Nov-2016, resulting in new competition for rivals Garuda Indonesia and Australia's Qantas Airways. SIA's entrance on the Jakarta-Sydney route is a strategic move and highlights its desire to pursue new areas of growth.

The Indonesia-Australia market is a logical market for SIA as it seeks to diversify its business. Indonesia and Australia are already SIA's two largest international markets and Garuda and Qantas are already among its biggest competitors.

Competition within Asia Pacific, including the Southeast Asia-Australia market, has been intensifying. In the current highly competitive and challenging environment airlines are constantly jockeying and exploring new options to improve their position.

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