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.