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Virgin and Singapore tie-up gets first green light

A Singapore Airlines Airbus A330

Virgin Australia and Singapore Airlines have been given approval for their proposed alliance from the Competition Commission of Singapore (CCS).

The CCS decision represents another step towards the two airlines being able to implement a deep and integrated alliance connecting Singapore Airlines’ global network with Virgin Australia’s wide range of Australian and Pacific destinations.
 
Singapore Airlines’ Executive Vice President Commercial Mak Swee Wah said: “We welcome the Competition Commission of Singapore’s approval and look forward to soon being able to offer customers the full benefits of our landmark alliance.

“In addition to codesharing on each other’s flights, the alliance will offer our customers seamless connections, convenient flight schedules, access to more airport lounges and greater opportunities to earn and redeem frequent flyer miles.”

Virgin Australia’s CEO John Borghetti added:  “The Competition Commission of Singapore’s decision to grant approval for this strategic alliance is welcome news for our airline.

“We believe the proposed alliance will enable us to offer a competitive, first-rate product to Australian and Asian travellers, as well as promote tourism in the two regions.

“Singapore Airlines is widely regarded as one of the best airlines in the world and, following the recent repositioning of our brand and the introduction of our new business and economy class product, Virgin Australia is a well-suited partner,” Borghetti said.

Singapore Airlines and Virgin Australia lodged an application with the relevant regulatory authorities in Singapore and Australia in June seeking approval to co-operate across a broad range of commercial functions. On October 13, the Australian Competition and Consumer Commission (ACCC) announced draft approval of the proposed alliance. The ACCC is now seeking further submissions before making its final decision.

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