Flirty Virgin swaps partners

Virgin Australia is ready to dump its relationship with Malaysia Airlines ahead of a more extensive tie-up with Singapore Airlines.

Virgin and SIA have lodged an application with the Australian Competition and Consumer Commission (ACCC) to form an alliance covering code sharing, new routes, pricing, scheduling, marketing and sales on Australia-Singapore services and international and domestic connecting flights.

They also plan to offer reciprocal benefits to members of their respective frequent flyer programmes, including lounge access.

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

The latest moves set the stage for a heavyweight battle over south-east Asia between the SIA-Virgin Australia alliance and the Qantas-MAS team.

Virgin Australia said there was no prospect of a broader relationship with Malaysia Airlines followed the latter's decision to join oneworld.