Virgin Blue Holdings Ltd (ASX: VBA) chief executive John Borghetti reiterated his belief on Tuesday that Australian-based carriers must forged useful alliances that would enable them to provide affordable international networks to passengers and all the possible attending perks.

Also, Mr Borghetti told reporters in Sydney that the company was very disappointed by indications floated by US federal regulators that Virgin Blue's proposed partnership with Delta Airways would not prosper as the alliance failed to convince the US government that it could deliver ample benefits to consumers to gain immunity from US anti-trusts laws.

The Virgin Blue chief executive said that the decision by US authorities would be a major drawback for Australia as a whole as he noted that the country requires a second major airline that could offer sufficient competition in the international network.

Mr Borghetti stressed that it would be next to impossible for any Australian-based airline to create an extensive global network on its own as he added that "without them, tourism, competition and our economy will be the losers."

The airline suffered another setback on Friday last week when the Australian Competition and Consumer Commission threw out the proposed Virgin Blue and Air New Zealand alliance for the trans-Tasman routes, citing that the proposal would likely lead to reduced competition.

Mr Borghetti lamented that the ACCC decision was unfortunate as he asserted that the proposal was set to be utilised by Virgin Blue to enhance its competitive strength in both corporate and leisure travelling markets in order for the airline to make considerable profit in the trans-Tasman routes.