Watchdog boosts Virgin Australia-SIA alliance hopes
Australia’s competition watchdog, the ACCC, has given draft approval to the proposed alliance between Virgin Australia and Singapore Airlines.
Virgin Australia group CEO John Borghetti said an alliance with Singapore Airlines is a key plank in Virgin Australia’s strategy to build an international network of airline partners that offers global coverage.
“The alliance would also be very positive for Australian tourism, including regional Australia, as both airlines will promote Australia in many cities throughout Asia,” Borghetti said.
Singapore Airlines and Virgin Australia lodged an application with the ACCC in June under which the airlines propose to:
– Codeshare on each other’s international and domestic flights;
– Offer reciprocal frequent flyer programme benefits and lounge access;
– Coordinate schedules between Singapore and Australia and beyond to provide seamless connections; and
– Engage in joint sales, marketing and distribution activities.
The ACCC is expected to make its final ruling following public comments on the proposal.
The two airlines are also awaiting approval from the Competition Commission of Singapore.
Ian Jarrett
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