Australia Approves Singapore Airlines-Virgin Australia Alliance
Karamjit Kaur – Straits Times Indonesia
Singapore Airlines has crossed the first hurdle towards a proposed tie-up with Virgin Australia.
The Australian Competition and Consumer Commission (ACCC) has given its green light for the alliance which will allow SIA to expand its presence Down Under.
The tie-up with Virgin Australia includes a code-sharing agreement, which means the two carriers will sell seats on each other’s services. Both carriers also plan to coordinate flight schedules so that travellers can transfer seamlessly from one carrier to another.
SIA’s regional vice-president for South West Pacific, Subhas Menon, said in an announcement on Thursday that the alliance will benefit both leisure and corporate travellers.
The tie-up, which comes as SIA faces increasing competition from both full-service as well as low-cost carriers, is still subject to regulatory approvals in both countries.
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