Virgin Australia seeks SIA partnership and waves off MAS
Virgin Australia and Singapore Airlines (SIA) have applied to form an alliance that will see them codesharing and cooperating on prices and schedules.
The application to the Australian Competition and Consumer Commission (ACCC) sees the end of Virgin Australia’s frequent flyer and interline deal with Malaysia Airlines (MAS) which announced this month it would be joining the oneworld alliance.
MAS is also looking for some sort of partnership with flag carrier Qantas Airways.
If the ACCC green lights the SIA partnership, the two airlines will work together on sales and marketing for Australia-Singapore services as well as international flights and will launch bids for corporate and government travel contracts.
They will also offer reciprocal benefits to both airlines’ frequent flyer passengers.
The two airlines will look at new routes, although won’t say which ones at this stage, plus adding capacity to routes between Australia and Singapore.
The deal, similar to its relationship with Middle Eastern carrier Etihad, is part of Virgin’s plan to boost its worldwide network without committing capital on new planes.
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by Dinah Hatch
Dinah
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