Virgin Australia announces partnership with SQ

Singapore Airlines and Virgin Australia have announced an alliance agreement that will see them codeshare on each other’s networks, offer reciprocal frequent flyer program benefits, and coordinate flight schedules between Singapore and Australia.

From August 1, the two airlines will interlines on each other’s networks, giving their passengers access to 70 international destinations on Singapore’s network and a total of 30 destinations through Virgin Australia’s Australia-Pacific network. Full codesharing and other arrangements will be put in place later in the year pending ACCC approval. Various “sales, marketing and distribution activities” will also be coordinated between the two carriers.

“Asia is clearly a critical market for us as we build our international alliance network,” Virgin Australia CEO John Borghetti said. “Singapore Airlines’ extensive network throughout Asia will be particularly attractive to our international business and leisure travellers and this partnership, along with our other alliances, will mean Virgin Australia can now offer truly global flight coverage. 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 agreed, saying that the proposed agreement with Virgin would “provide the public with access to an enlarged network, offering a first rate, integrated travel experience”.

Comments (4)

Cynical

June 7, 2011 at 5:43 pm

So Singapore Airlines will finally get the SY-LAX route through the back door anyways!

Peter

June 8, 2011 at 5:36 am

Do i see Virgin Australia linking up with the Star Alliance network within the next 12-18 months ?

Darren

June 8, 2011 at 3:48 pm

Peter’s comments about Virgin Australia and Star Alliance highlight some interesting possibilities – what might happen to the Delta Airlines tie-up with Virgin Australia in the medium to longer-term if this happens?

Of course, strategic bilateral alliances between airlines in competing global alliances are not uncommon (Air France and Qantas, South African Airways and Qantas, etc), however, these are usually limited to specific routes and are rarely about greater mutual network access.

Also, is Etihad Airways (another Virgin Australia partner) likely to join Star Alliance as well?

Interesting times ahead – whatever happens at the end of the day, a move by Virgin Australia towards membership in a global alliance is likely to outweigh any negative press or attention received if it eventually opts to re-arrange or cancel relationships with a strategic partner or two.