VIRGIN AND SINGAPORE AIRLINES DEAL IN THE WINGS

Written on the 7 June 2011

VIRGIN AND SINGAPORE AIRLINES DEAL IN THE WINGS

VIRGIN Australia (ASX:VBA) and Singapore Airlines have signed a landmark agreement which will enable code sharing on international and domestic flights, reciprocal frequent flyer program benefits and lounge access.

The deal will also see the airlines co-ordinate schedules and engage in joint sales, marketing and distribution activities.

Through the Singapore Airlines network, Virgin Australia customers will have access to and extra 70 destinations, while Singapore Airlines customers will have access to another 30 destinations via Virgin’s network.

The two airlines will lodge an application in coming weeks for authorisation with the Australian Competition and Consumer Commission to enable them to co-operate across a broad range of commercial functions.

Virgin Australia group of airlines CEO John Borghetti (pictured), says when Singapore Airlines first launched in Australia, it ‘revolutionised’ international air travel for Australians, providing a world class service to Asia, Europe and beyond.

“Asia is clearly a critical market for us as we build our international alliance network. Singapore Airlines’ extensive network throughout Asia will be particularly attractive to our international business and leisure travelers and this partnership, along with our other alliances; will mean Virgin Australia can now offer global flight coverage,” he says.

“With the recent re-positioning of our brand and the launch of our product enhancements, including domestic business class, Virgin Australia and Singapore Airlines are ideally suited as airline partners.”

Singapore Airlines CEO Goh Choon Phong, says the airline has been committed to the Australian market for more than 40 years.

“With regulatory approval, the partnership will enable us to offer more choice to domestic and international air travel. Together with Virgin Australia, we will provide the public with access to an enlarged network, offering a first rate, integrated travel experience,” he says.

“The partnership presents a significant opportunity for Singapore Airlines to drive growth and will enhance the attractiveness of Australia as a travel destination while also opening up new horizons for travelers from Australia.”

Virgin Australia recently rebranded after dropping the Virgin Blue banner.

VBA shares remained unchanged today at $0.28


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