Virgin Blue Holdings Ltd (ASX:VBA) and Middle East-based airline Etihad are planning to bolster their alliance in a bid to improve efficiency, according to The Australian.
In September The Australian Competition and Consumer Commission offered its preliminary approval of the planned 10-year tie-up which would see both airlines cooperate on joint pricing and scheduling on services.
However The Australian reports more plans are in the pipeline such as joint lounge facilities at Sydney International Airport.
The plans were revealed by Virgin CEO John Borghetti and Etihad CEO James Hogan at their first joint interview since the announcement of the alliance.
Mr Hogan says that whether it be training, purchasing, engineering support, or aircraft acquisitions, all those options are on the table.
In the 2010 financial year Virgin Blue posted a $21.3 million net profit.
VBA Price at posting:
45.5¢ Sentiment: None Disclosure: Held
