Virgin Australia announces strategic alliance with Singapore Airlines

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Finally - I don't think Wednesday about any Star Alliance announcement - though interesting to see what this announcement is on 14th June for some AFFers re: Velocity Rewards' post? :mrgreen::mrgreen::mrgreen: Five members - five points on a STAR? ;)

Misha!!! Wow, I like your thinking.
 
This is great! If VA joins *A that'd be even better = I can consolidate on two alliances with FFPs based at home.

The main thing to see will be how SQ and VA tee up their earning structures. SQ aren't the friendliest of airlines in *A, what with restricting (i.e. pretty much outright blocking) redemption of new J, new F and Suites, and only granting points earn on non-sale fares (e.g. "Sweet Deals" or "Hot Deals" on SQ's website do not earn points or status, even for their own KF members).

What is interesting is if this tie up will break down some of those barriers. One key one seems to have already been broken, i.e. VA/SQ reciprocal lounge access. *G members can only access the KrisFlyer Gold lounge in SIN, which is admittedly inferior. AFAICT the only Economy pax that get access to the true SIN T3 SilverKris lounges (even the J one) are SQ KF Gold and PPS members. If I'm speculating this tie up correctly, VA Gold members may be the only non-KF flyers that can hold a Y ticket and use the SilverKris lounge. Certainly, that's going to create a real stir for all the other members of *A. Tip in the ability for VA members to redeem at least even on new J and new F (i.e. on new 777 aircraft, all-business 345 and A380 (except Suites)), and not only will this really rile up all other *A FFP members, but you just might see a real surge in VA FFP membership.

I wouldn't go so far as to say this is the nail in coffin for QF. Sure, I've been in QF's camp for eons and still will be, but the most I see is that VA will achieve its business goals. QF will survive, but it won't like its new position, and probably most here won't, but then we don't represent all fliers around the country (whether you like to regard them as "suckers" or free thinking people for flying QF is up to you). And whilst we can blame all of QF's demise on the should-have-never-been-born-and-neither-should've-his-god-forsaken-mother Alan Joyce :rolleyes:, again I see QF as basically losing its market share as planned (i.e. there was really nothing they could do about it, it was going to happen irrespective of the success of VA and its Game Change Plan).

What I really want to see is the market heat up so much that we will have real drivers for cost reduction, with VA and QF (amongst other worthy contenders) sporting toe-to-toe product with toe-to-toe pricing. Only when we have a critical market similar to that around the world (e.g. in the UK and the USA) will we start to get the kinds of prices we wish for long haul travel (especially in premium classes) we only see from various other regions around the world. This is especially challenging since the Australia/New Zealand market alone doesn't have the bare bones capacity compared to other regions to create a large market with good economies of scale.

Next announcement: VA introduces First Class (hey! Whilst we're dreaming....)
 
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Aus BT has tweeted
John Borghetti says the SQ tie-up completes Virgin Australia's "major strategic alliance strategy"
so that sounds like no Star Alliance (or any other alliance membership for that matter) is on the cards.

Cheers
N'oz
 
Virgin may eye Star Alliance on back of tie up with Singapore Airlines

IMO it's now only a matter of time before Virgin join Star Alliance.



Virgin may eye Star Alliance on back of tie up with Singapore Airlines | The Australian


QANTAS has suffered another blow after Singapore Airlines and Virgin Australia announced they were forming a long-term alliance today.

The proposed alliance will allow the airlines to codeshare on each other’s international and domestic flights and give them the ability to “earn and burn” points with each other’s frequent-flyer schemes.

The code-sharing agreement will help Virgin attract more business travellers, who often travel at short notice and therefore pay a premium on fares, and it will provide Virgin with more international passengers for local domestic routes, a benefit Qantas enjoys.

They also want to co-ordinate schedules between Singapore and Australia and engage in joint sales, marketing and distribution.

A joint statement from SIA and Virgin said: “The alliance will connect Singapore Airlines’s extensive international network with Virgin Australia’s wide range of Australian and Pacific destinations.

“Through the Singapore Airlines network, Virgin Australia customers will have access to some 70 more destinations.

"Through the Virgin Australia network, Singapore Airlines customers will have access to some 30 more destinations.”
 
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And then there was more....
Twitter (@AusBT) said:
J-Borg - "Is this the worst nightmare for Qantas? You'll have to ask them that."
 
Which is consistent with what he has been saying all along.

Aaah...but don't stop holding your breath yet:
Twitter (@AusBT) said:
J-Borg on #VirginAustralia joining Star Alliance: that is not in our thinking at the moment, that's for 2012 and beyond #staralliance
 
Re: Virgin may eye Star Alliance on back of tie up with Singapore Airlines

As in the other thread, a tweet by AusBT: "J-Borg on #VirginAustralia joining Star Alliance: that is not in our thinking at the moment, that's for 2012 and beyond"
 
Then my bet is Star Alliance for 1st Jan 2012 - remember this post people. It has to be the epitome of such a strategy....

Also, looking at how long entry takes - I would suggest this is currently being arranged, but they wish to annouce it closer to the closure of the deal - just as they did with SQ, and totally opposite to the MH/QF announcement ('in 18 months').... JB specifically says 2012 and beyond because that is where it lies in his business plan - signed, sealed, delivered!

I hope - but I also think it will happen...

Anyway - I really have to get some work done today ;)
 
Aaah...but don't stop holding your breath yet:

Keep in mind, that even from announcing such a thing, there would be a period of a year or longer before it came to anything tangible for the passenger. So even an announcement in 2012, would mean 2013 at the earliest.

(and for an idea of how long this can take, just ask Air India and Star Alliance!)

...and I also sometimes wonder how committed to Star SQ really is.
 
Keep in mind, that even from announcing such a thing, there would be a period of a year or longer before it came to anything tangible for the passenger. So even an announcement in 2012, would mean 2013 at the earliest.

(and for an idea of how long this can take, just ask Air India and Star Alliance!)

...and I also sometimes wonder how committed to Star SQ really is.

All very true (as is with any alliance integration project). But the prospect that it may happen can give many comfort (vs. not going to happen at all. Just like MH could pull out of the alliance integration with oneworld, but the fact that it has announced to join is comforting even if the benefits are not immediate or even short term.)

And VA joining *A vs. AI joining *A are two very different kettles of fish. VA does not have safety concerns, has fairly mature and secure systems and even with our rampant Australian western-capitalist bureaucracy VA will actually get something done rather than drag its feet through mud and then some. So if VA were to signup for *A membership in the future I would have no doubt (cf. AI) of its capability and speed (velocity, if you will) to integrate.
 
Very cool!

The world as I know it has changed forever....:shock: /dramatic
 
So with code share, SQ gets to fly direct from AUS to USA using VA.
 
The Australian Business Traveller (live on the scene of the announcement) seems to have confirmed that VA Gold and Platinum members will get access to SilverKris Lounges. If this means the real SIN T3 ones then *A eat your heart out.
 
So Virgin Australia/Velocity now have these in their stable:

North America - Delta, VA and Hawaiian Airlines, Virgin America, SQ.
NZ/Pacific: VA, Polynesian Blue and Air New Zealand
Middle East: VA/Etihad, SQ
Europe/Africa: Etihad, Virgin Atlantic, SQ
Asia: Singapore Airlines with cameos from Etihad (BNE-SIN) and VS (SYD-HKG) and DJ (PER-coughet)

......and MH is actually still a partner for the forseeable future!

Who would have thought that making alliances with airlines that fly to destinations that Australians actually want to fly to would be a winning strategy.

Has Mr Joyce even worked out where Dubai, Delhi, or Beijing are located on the map? I guess it is hard to see the world map when there is just so much cost-cutting to be done. Snip, snip. Snip, snip.

Well played Mr Borghetti, well played.
 
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Don't know if this is good or bad for me;) My SQ status will now happily make VA my preferred domestic carrier, but there will undoubtedly be much more competition for SQ awards between SIN & Australia.

Seriously I do think this is great news, and is game changing. Not unsurprising but we really are almost back to 2001. When will Rex come into the fold?? :p
 
So with code share, SQ gets to fly direct from AUS to USA using VA.

I wouldn't say that at all. You shouldn't assume that all VA flights will be codeshared with SQ. In the announcement by VA/SQ, there is no mention of what will happen with the American flights.

Remember that VA's tie-up for trans-Pacific is with Delta and VA flights to/from America are code-shared with DL.
 
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