Virgin Australia and Singapore Airlines have announced their intent to form an interline and marketing partnership, the two carriers said Tuesday in Singapore and Sydney. The agreement, which is subject to approval by the Australian Competition and Consumer Commission, would allow the airlines to issue cooperative tickets on each other's flights, allow reciprocal frequent flier earning and elite benefits, and coordinate sales, marketing, and flight scheduling efforts to maximize throughput between the partners. Virgin Australia is Australia's second largest airline and oldest continuously operating low cost carrier. Singapore Airlines is one of the world's strongest airline brands with a reputation for sparkling onboard service.
Virgin Australia group of airlines CEO John Borghetti said: “We are delighted to be partnering with one of the most respected and innovative airlines in the world. When it first launched in Australia, Singapore Airlines revolutionised international air travel for Australians, providing a world class service to Asia, Europe and beyond.” Singapore Airlines is a major player in Australia, serving five destinations and is a popular choice for Australian travelers bound for Asia, the Subcontinent, the Middle East, and Europe.
The move brings about speculation over whether Virgin Australia and the other Virgin Group airlines are gearing up for joining an airline alliance. The alliance is not Singapore Airlines first deal with a Virgin Group owned or licensed carrier. Singapore bought a 49% stake in Virgin Atlantic in 1999, although the airline recently said it is open to sell its shares in the London-based airline should it find a suitable buyer. Virgin Australia also cooperates with Air New Zealand (like Singapore Airlines a Star Alliance member) on trans-Tasman services, and recently received approval from the US Department of Transportation for anti-trust immunity with SkyTeam affiliated Delta Air Lines. Archrival QANTAS is a member of the Oneworld Alliance.
Virgin Australia, formerly Virgin Blue, is in the process of rebranding V Australia and regional Oceania operator Pacific Blue under the new Virgin Australia banner. The combined carriers operate a total of 89 aircraft on routes within Australia, New Zealand, Oceania, Southeast Asia, and North America.
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