ACCC gives green light to Virgin Australia, Singapore deal

The ACCC has issued a draft decision proposing to grant authorisation for Virgin Australia and Singapore Airlines to enter into an integrated network aviation alliance.

Under the alliance, the airlines will cooperate on all aspects of their Australia –Singapore services and any international and domestic connecting routes, including joint pricing and scheduling and joint marketing and sales.

"The ACCC considers that this alliance is likely to result in material benefits to the public including enhanced products and services, in particular increased online connectivity for passengers," ACCC chairman Rod Sims said.

"The ACCC also considers that the alliance is likely to make Virgin Australia morecompetitive with other airlines, including Qantas."

The ACCC will now seek further submissions from the applicants and interestedparties in relation to this draft determination prior to making a final decision.

“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," said the airline's John Borghetti.

Singapore Airlines Regional Vice-President South West Pacific Subhas Menon said: "We are pleased with the ACCC's draft approval...  our partnership with Virgin Australia will enable us to deliver a best-in-class travel experience across Australia."

Virgin Australia needed this Asian network link. It's Etihad-generated network out of the Middle East has not yet delivered the loads that it would like - but it's early days yet, and the airline must be picking up a lot of Qantas business while that carrier is enmeshed in industrial disputes that show no sign of ending.