by Adam Dunning September 23rd, 2011
Virgin Australia’s chief executive has said the carrier has a strong case for a possible alliance with Singapore Airlines.
According to a Dow Jones report, Mr John Borghetti said on Friday that the Virgin Australia’s proposal for its tie up with Singapore Airlines had a strong chance of getting approval from Australia’s Competition and Consumer Commission (ACCC). He said that the alliance would actually improve competition and would provide a boost for tourism because it would allow both carriers to look at new possible routes.
The two airlines filed an application with the ACCC in June of this year, each requesting to codeshare flights for the other carrier on both international and domestic routes. The airlines also requested to be able to offer frequent flyer miles and benefits on either carrier, coordinate scheduling for flights between Australia and Singapore to provide easier connections and to be able to sell joint tickets on a single itinerary.
Dow Jones reports that officials from the ACCC are set to submit a preliminary decision sometime this month or next. If approved, SIA and Virgin will also engage in joint marketing and distribution efforts.
The news could spell trouble for Qantas, which continues to struggle competing with Asia-based global carriers and has recently been targeted by Virgin in the effort of poaching its domestic business class passengers.