Virgin may eye Star Alliance on back of tie up with Singapore...

Virgin may eye Star Alliance on back of tie up with Singapore Airlines

UPDATED Steve Creedy, Aviation writer From: The Australian June 07, 2011 9:48AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these?
QANTAS has suffered another blow after Singapore Airlines and Virgin Australia announced they were forming a long-term alliance today.

The proposed alliance will allow the airlines to codeshare on each other?s international and domestic flights and give them the ability to ?earn and burn? points with each other?s frequent-flyer schemes.

The code-sharing agreement will help Virgin attract more business travellers, who often travel at short notice and therefore pay a premium on fares, and it will provide Virgin with more international passengers for local domestic routes, a benefit Qantas enjoys.

They also want to co-ordinate schedules between Singapore and Australia and engage in joint sales, marketing and distribution.

A joint statement from SIA and Virgin said: ?The alliance will connect Singapore Airlines?s extensive international network with Virgin Australia?s wide range of Australian and Pacific destinations.

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?Through the Singapore Airlines network, Virgin Australia customers will have access to some 70 more destinations.

"Through the Virgin Australia network, Singapore Airlines customers will have access to some 30 more destinations.?

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

Authorisation will allow the airlines to build a deep and integrated alliance with seamless-service offerings to the travelling public, they said.

The move, coming just a day after Qantas announced it would team up with Malaysia Airlines, raises the prospect that Virgin could join the powerful Star Alliance.

Star has not had an Australian member since the collapse of Ansett in 2001.

As part of the agreement, the two airlines have agreed that the SIA customer will be able to 'interline' - using the same ticket on different airlines - through Virgin from August 1 and top-tier frequent flyers will have access to each other?s lounges.

Singapore is a major player on international routes into and out of Australia and has a stake in domestic player Tiger Airways.

Virgin flagged that it was looking for an Asian partner but had indicated it would not make an announcement until later this year.

Singapore Airlines chief executive Goh Choon Phong said the airline had been committed to the Australian market for more than 40 years.

?With regulatory approval, the partnership will enable us to offer even more choice for 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 said.

?The partnership presents a significant opportunity for Singapore Airlines to drive growth in a manner consistent with our focus on service excellence, product innovation and network connectivity. It will enhance the attractiveness of Australia as a travel destination while also opening up new horizons for travellers from Australia.?

Virgin Australia boss John Borghetti said Asia was clearly a critical market as the airline built its international alliance network.

Singapore Airlines?s 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," he said.