SINGAPORE AIRLINES and VIRGIN AUSTRALIA have signed an agreement paving the way to a long-term alliance. The agreement is subject to regulatory approval. It will allow the carriers to coordinate schedules between Singapore and Australia and beyond as well as codeshare on each other's international and domestic flights. In addition, it will allow them to offer reciprocal frequent flyer program benefits and lounge access, engage in joint sales, marketing and distribution activities. The carriers said that through the alliance, Virgin Australia customers will have access to over 70 more destinations via SIA's network. SIA passengers will have access to 30 more destinations via Virgin Australia. "The 2 Airlines will lodge an application with the relevant regulatory authorities to enable them to co-operate across a broad range of commercial functions," said the carriers, which hope the deal is approved by end-2011. "Approval will allow the Airlines to build a deep and integrated alliance with seamless service offerings to the travelling public". The new alliance does not extend to transpacific flights operated by Virgin Australia's long-haul associate V AUSTRALIA. "We do not have the underlying rights for those flights and the alliance will not include codesharing on US flights," said SIA's CEO. However, he said he hopes that SIA's partnership with Virgin Australia will help the Star Alliance strengthen its case to be allowed to fly beyond Australia to the United States. SIA cannot operate these transpacific flights because of a lack of rights from the Australian government. "We are always for greater liberalization," he said. "We hope this alliance will show our commitment to the Australian market".
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