Virgin Australia to end pact with MAS

MELBOURNE -- Virgin Australia will seek to end its relationship with Malaysia Airlines as it pursues a partnership with Singapore Airlines.

This comes after MAS announced earlier this month that it would join the oneworld airline alliance and seek closer cooperation with national flag carrier Qantas Airways.

The Australian Associated Press (AAP) said Tuesday Virgin and SIA have lodged an application with the Australian Competition and Consumer Commission (ACCC) to form the alliance.

The two airlines want ACCC approval to codeshare and cooperate on pricing, scheduling, marketing and sales on Australia-Singapore services and international and domestic connecting flights.

They also plan to bid for corporate and government travel contracts, and offer reciprocal benefits to members of their respective frequent flyer programmes including lounge access and the ability to earn and burn points.

Virgin and SIA said they were looking at new routes, but specific city pairs were blanked out in the public version of their application.

They also said they would look at adding additional capacity and using larger aircraft between Australia and Singapore.

The application also confirmed Virgin was looking to wind up its reciprocal frequent flyer and interline arrangements with MAS.
Virgin and SIA said they would spend money improving IT, booking and check-in systems, and on product alignment and marketing.

They have asked for approval for an initial 10-year term to "ensure adequate time to achieve a return on that investment".
SIA has 92 return services a week between Singapore and Australia. -- Bernama