Pact is likely to result in a net public benefit, Commission rules.
The Australian Competition and Consumer Commission has just issued its final decision on re-authorisation of the alliance between Singapore Airlines and Virgin Australia.
The five-year renewal is half of the decade-long reauthorisation requested by the carriers, with the ACCC deciding on the shorter period “in light of the ongoing evolution of services between Australia and the United Kingdom and Europe and between Australia and Asia, including Virgin Australia’s proposed expansion of services into Asia, and the dynamic nature of the aviation industry”.
Virgin Australia ceo John Borghetti welcomed the decision, saying “together with our alliance partner Singapore Airlines, we look forward to continuing to provide Australian travellers with choice and competition on routes from Australia to Asia and Europe”.
He said benefits of the alliance have included more services such as the introduction of direct flights from Singapore to Cairns, Darwin and this week Canberra, as well as more capacity and greater frequencies on key routes, more destinations and an improved customer experience.
The pact has also resulted in a “world-first points conversion initiative” which allows members of Velocity Frequent Flyer and KrisFlyer to convert points between both programs, he said.
More details in Monday’s issue of Travel Daily.