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Virgin Australia welcomes ACCC draft approval of Singapore Airlines alliance

13/10/2011

Virgin Australia group of airlines (ASX: VBA) today welcomed the ACCC’s draft approval of its proposed alliance with Singapore Airlines.

The proposed alliance will enable the two airlines to provide guests with an expanded network of destinations, seamless connections, a more convenient flight schedule and more opportunities to earn frequent flyer points and access lounges.

Virgin Australia group of airlines CEO John Borghetti said: “We welcome the ACCC’s draft approval of our proposed alliance with Singapore Airlines. The alliance will enable us to deliver an attractive and competitive service for travellers in Australia and Asia.”

“The proposed Singapore Airlines alliance is a key plank in Virgin Australia’s strategy to build an international network of airline partners that offers global coverage. “The alliance would also be very positive for Australian tourism, including Regional Australia, as both airlines will promote Australia in many cities throughout Asia”, Mr Borghetti said.

The ACCC is expected to make its final ruling following public comments on the proposal. The two airlines are also awaiting approval from the Competition Commission of Singapore (CCS).