Thursday, December 1, 2011

Virgin Australia - Singapore Airlines Alliance Clears Last Hurdle

Virgin Australia and Singapore Airlines get their Christmas gift from Australian Competition and Consumer Commission (ACCC)! The regulatory body has given its all important nod to the airlines to form an alliance.

The alliance between these two major players will allow them to work together on issues like pricing, travel scheduling, marketing and sales on Australia-Singapore flights as well as international and domestic connections.

ACCC gave the final green signal to the alliance on Thursday, saying the deal between the two airlines is likely to increase competition for international air travellers. While this may not be very good news for Virgin Australia biggest rival, Qantas Airways, it sure is music to ears to those who wanted a bit of competition on the leg in hope of netting cheap flight tickets!

Virgin Australia’s CEO John Borghetti welcomed the approval. Mr Borghetti spoke about the benefits the travellers are set to enjoy with this alliance getting into motion. 70 additional destinations across Asia, India and Africa will added to the airline’s network as a result of a tie-up with Singapore Airlines.

Singapore Airlines’ one more initiative seems have an Australian connection. SIA’s long haul low-cost airline, Scoot announced that it is going to kick start its operations by offering flights to Sydney. The airline, launched last month, said it is going to offer daily flights to Sydney from Changi airport from mid 2012. This is yet another development that is going to please travellers looking for cheap flight tickets as the airline promised to offer 40 percent lower fare than full-service airlines at time of its launch.

Initially, Scoot will be operating its services with a fleet of four Boeing 777s.


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