ACCC: Singapore Airlines – Virgin Australia Alliance OK To Fly
The proposed alliance between Singapore Airlines and Virgin Australia is almost as good as a done deal as the Australian Competition and Consumer Commission (ACCC) announced on Thursday it is finalizing necessary paper works that will ultimately conclude and seal the integrated network aviation alliance between the two airlines.
This means frequent travellers of Singapore Airlines and Virgin Australia stand to gain access to convenient flight arrangements and itineraries, admittance to more airport lounges and unlimited chances to produce and exchange frequent flyer miles.
"The ACCC considers that this alliance is likely to result in material benefits to the public including enhanced products and services, in particular increased online connectivity for passengers," ACCC chairman Rod Sims said in a statement.
"The ACCC also considers that the alliance is likely to make Virgin Australia more competitive with other airlines, including Qantas."
The Singapore Airlines - Virgin Australia tie-up includes a code-sharing agreement, allowing the two carriers to sell seats on each other's services. Both carriers also plan to coordinate flight schedules to allow travellers transfer seamlessly from one carrier to another.
Earlier, the ACCC granted Virgin Australia's deals with Air New Zealand, Etihad and Delta. Virgin Australia's partnership with Singapore Airlines is the last among its plans of expanding its international reach as it gears to out win labor beleaguered Qantas and gain 20 per cent of Australia's corporate travel market.
Shares in Virgin rose 0.5 cents to 32 cents in early morning trading.