VIRGIN Australia will be dissolving ties with Malaysia Airlines (MAS) as it seeks regulatory approval for its recently forged alliance with Singapore Airlines (SIA) (TTG Asia e-Daily, June 7).
Virgin and SIA intend to formalise the partnership, established earlier this month, through an application lodged with the Australian Competition and Consumer Commission (ACCC).
The two carriers have requested the ACCC’s approval for an initial 10-year term to “ensure adequate time to achieve a return on investment”.
Virgin is also looking to cease its reciprocal frequent flyer and interline arrangements with MAS, and launch new arrangements with SIA.
Virgin and SIA have agreed to codeshare and cooperate on pricing, scheduling, marketing and sales on Australia-Singapore routes, as well as international and domestic connecting flights.
MAS will be joining the oneworld alliance in late 2012 (TTG Asia e-Daily, June 6) and intends to seek closer cooperation with Qantas.
