Virgin Australia announces strategic alliance with Singapore Airlines

[KeithMEL]

Now I understand the sudden rush to get MH into OW.

There are numerous media reports on this but I believe the most comprehensive source is Virgin's ASX announcement:
http://www.asx.com.au/asx/statistics...idsId=01187061

Singapore Airlines and Virgin Australia group of airlines have signed a landmark agreement which will enable them to establish a long-term alliance.

Under the agreement, the two airlines propose 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.

...

Members of Singapore Airlines’ KrisFlyer frequent flyer programme will be able to earn and redeem miles on Virgin Australia flights, while Virgin Australia’s Velocity members will be able to earn and redeem miles on Singapore Airlines-operated flights.

...

Virgin Australia Velocity Gold members and Singapore Airlines KrisFlyer Gold members will have reciprocal access to each airline’s airport lounges.

[SQJunkie]

Thanks Keith for the quick news.
The game changes again!
Good for Aussies, but I think redemption availability will become more scarce.
And now SQ does not need to push for AUS-USA rights.

[kevin-sg]

It seems very strange for a premium airline to partner a low cost carrier...

[KeithMEL]

It seems very strange for a premium airline to partner a low cost carrier...

VAust is actually repositioning itself as a full service carrier. They now have Business Class domestically and regionally, and their long haul arm is already full service in all 3 classes.

And i'm sure KF EGs will enjoy VAust's trendy new domestic lounges (internationally they're still using partner airline lounges - mainly NZ):
http://www.ausbt.com.au/photo-galler...ounge-now-open

[SQ_fanatic]

VAust is actually repositioning itself as a full service carrier. They now have Business Class domestically and regionally, and their long haul arm is already full service in all 3 classes.

And i'm sure KF EGs will enjoy VAust's trendy new domestic lounges (internationally they're still using partner airline lounges - mainly NZ):
http://www.ausbt.com.au/photo-galler...ounge-now-open

But their domestic economy is essentially no frills. They still charge for baggage and inflight catering. No doubt comparing their pricing with Tiger, they are heading for the more premium segment and so the alliance with SQ is justified.

But it puzzles me that sometimes, economy VA flights are more expensive if not matching with Qantas Domestic. Wonders if these economy customers might just go for Qantas.

[Fryderyk HPH]

I could not seem to post the press release here...

So if you want to see the press release, please click on this link.

[KeithMEL]

But their domestic economy is essentially no frills. They still charge for baggage and inflight catering. No doubt comparing their pricing with Tiger, they are heading for the more premium segment and so the alliance with SQ is justified.

That depends on which fare one books into. And I think the arrangement with SQ will include baggage and meals on DJ flights if one is booked as part of an SQ ticket and/or codeshare arrangement.

[kevin-sg]

ahhh... thanks KeithMEL for the information... very sleek nice new DJ lounge
Yes, I do remember now that Virgin Blue is now re-branded to Virgin Australia with new white livery for her fleet... :-)

[Chesty]

That depends on which fare one books into. And I think the arrangement with SQ will include baggage and meals on DJ flights if one is booked as part of an SQ ticket and/or codeshare arrangement.

I believe that's correct. Also don't they include meals now on 2 of the 3 fare buckets for Y?

[KeithMEL]

I believe that's correct. Also don't they include meals now on 2 of the 3 fare buckets for Y?

There are Flexi fares which include meals (amongst other things), and Saver fares which don't. I think there should be an option for pax on Saver fares to pre-bundle things like IFE and meals, as not everyone needs the flexible fare rules of a Flexi fare but might want a more full service onboard experience. They might win over TT/JQ pax but QF Red E-deals will still be more compelling for some. Or even something in between Saver and Flexi like Virgin America's Main Cabin Select Instant Upgrade fares. But I think they want to get the market familiar with their new fare structure before additional complexities are introduced.

Then there are Premium fares which book into either Premium Economy or Business, depending on whether you get a refurbished aircraft or not.

Also, the new SOP in Economy is that pax on Flexi fares will be served their meals first, followed by another trolley run for Buy Onboard. I suppose SQ pax will be treated as though they're on Flexi fares.

[Gunners]

Press release in Sydney Morning Herald


http://www.smh.com.au/business/virgi...ml?from=smh_sb

[KeithMEL]

I really didn't see all these breathtaking changes coming though it's commonly accepted that SQ didn't waive restrictions on using the 'Virgin' brand for nothing in return. Before yesterday speculation was that MH will persist in its attempt to join ScaryTeam (or sink), and VAust will sign up a few random Asian airlines which might include MH which is already an FF partner. Signing up SQ is really a coup for VAust given the strength of the SIA brand relative to MAS in the Australian market

Getting harder and harder to evaluate QF vs VAust! I was really going to move some business over to the latter until yesterday's news about MH and oneworld! Then again the SQ/VA combo has similarly strong appeal. I'd say MH is a better value (read: cheap J fares) overall though, in addition to being a very nice carrier to fly.

[Gunners]

After the tie up with SIA, I wonder is VAust is still seeking a Chinese carrier. China Southern would have seem the nature choise with flights to Guangzhou from most major Austrlaian airpors and soon out of Perth. With SIA coming on Board I wond if they going down the *A route and will chose Air China or none at all.

[SQ_fanatic]

There are Flexi fares which include meals (amongst other things), and Saver fares which don't. I think there should be an option for pax on Saver fares to pre-bundle things like IFE and meals, as not everyone needs the flexible fare rules of a Flexi fare but might want a more full service onboard experience. They might win over TT/JQ pax but QF Red E-deals will still be more compelling for some. Or even something in between Saver and Flexi like Virgin America's Main Cabin Select Instant Upgrade fares. But I think they want to get the market familiar with their new fare structure before additional complexities are introduced.

With a hybrid, in my opinion, it still feels that I am still flying with a 'budget' carrier. Their base saver fares are also usually more expensive than TR/JQ. Adding the baggage fees and meals, not sure on how it may work out for them. Not sure on the level of customer service (ground or air) that they will provide though. But for sure, that may be the crucial factor.

[flying.monkeyz]