VIRGIN LODGES BID FOR SIA ALLIANCE

Travel Weekly

Virgin Australia and Singapore Airlines have set out plans to provide a “viable” alternative to Qantas as the carriers look for regulatory approval for their Asia alliance.

In a 107-page submission to the Australian Competition and Consumer Commission (ACCC), Virgin said in order to attract more corporate business it needs to “offer an international network that is comparable with that of Qantas”

“Under the alliance Virgin Australia will be better placed to challenge Qantas’ leading position for air travel to and from Australia,” the airline said.

Approval would enable it to “provide more choice and better value for customers” in the supply of both corporate and government contracts.

The additional traffic and competition would also enable the airlines to “investigate new route opportunities”, while the marketing opportunities would provide a boost to tourism.

An Air Pass product will be launched for international tourists to encourage and promote travel beyond the major gateway cities in Australia, the ACCC were told.

Virgin said there would be no impact on its existing deals with Etihad, Air New Zealand and Delta with the carrier vowing it has no intention to codeshare on Singapore Airlines’ routes where it already has codeshare arrangements with Etihad.

The application said reciprocal lounge access for frequent flyer members and an interline deal will start from August 1.

Interested parties have until July 15 to comment on the proposal with the ACCC expected to hand down a draft determination in September or October and a final ruling likely in November or December.