Agreement between Singapore Airlines Limited and Virgin Australia Airlines Pty Ltd

Case Title

Agreement between Singapore Airlines Limited and Virgin Australia Airlines Pty Ltd

Notifying Date:

22 June 2011

Notifying Parties:

The parties to the Agreement are:

(1) Singapore Airlines Limited (“SIA”);

(2) Virgin Australia Airlines Pty Ltd (“Virgin Australia”);

(3) SilkAir (Singapore) Private Limited;

(4) Virgin Australia International Airlines Pty Ltd;

(5) Pacific Blue Airlines (NZ) Limited;

(6) Pacific Blue Airlines (Australia) Pty Ltd;

(7) Velocity Rewards Pty Ltd as trustee of the Loyalty Trust.

Summary of the nature and objective of the agreement

The Proposed Alliance is intended to increase competition for air passenger services from Singapore and various Australia, Pacific and trans-Tasman destinations through connecting the complimentary networks of SIA and Virgin Australia. Under the framework agreement, SIA and Virgin Australia intend to: codeshare on each other’s international and domestic flights; offer reciprocal frequent-flyer programme benefits and lounge access; co-ordinate schedules between Singapore and Australia and beyond to provide seamless connections; and engage in joint sales, marketing and distribution activities.

The purpose of the Proposed Alliance is to bring about mutual benefit to SIA and Virgin Australia, as well as benefits to the travelling public especially those who are travelling between Singapore and Australia. It is envisaged that the Proposed Alliance will result in better connections at more competitive fares, the expansion of services and products available to passengers, more opportunities to earn and burn frequent flyer points, and various other efficiencies.

The Proposed Alliance is intended to be implemented in 2011. 

The Proposed Alliance primarily relates to the provision of air passenger services, specifically, the supply of international air passenger transport services between Singapore and Australia on a point-to-point basis.

Decision

On 19 October 2011, CCS issued the parties with a Clearance Decision on their proposed alliance. 

Click here for the decision.