Alliance Airlines (QQ, Brisbane International) has signed a long-term strategic partnership agreement with Virgin Australia Holdings following the signing of a heads of agreement for the proposed partnership in February 2016.
Under the terms of the tie-up, announced via filing with the Australian bourse, Alliance Airlines and Virgin Australia Regional (VA, Perth International) will form a charter partnership to jointly grow their respective charter businesses. Existing charter contracts will remain with their current operator, with all new contracts to be operated under the charter partnership.
Additionally, Alliance Airlines and Virgin Australia Regional Airlines will also enter into agreements to provide and procure services for each other on a preferential basis. This includes, but is not limited to, aircraft procurement, spare parts pooling, maintenance, ground handling services and customer benefits.
“Today’s announcement, in conjunction with our acquisition of the Austrian Airlines Fokker Aircraft fleet [fifteen Fokker 100s and six Fokker 70s] in November 2015, continues our transition into a broad based aviation company that offers an extensive range of services that will have the potential to significantly grow our revenue base over the coming years,” Alliance Airlines Managing Director, Scott McMillan, said.
The proposed strategic partnership is subject to approval from the Australian Competition and Consumer Commission.