| Journal: TWUK | Section: |
| Title: | Issue Date: 17/04/00 |
| Author: | Page Number: 30 |
| Copyright: Other |
New deals
SIA plans codesharing agreements with Virgin
NEW Star Alliance member Singapore Airlines is planning a range of agreements with Virgin Atlantic, which analysts believe could lead to the UK carrier joining the global group.The deals cover the possibility of widespread codesharing and joint aircraft buying.
SIA deputy chairman and chief executive Dr Cheong Choong Kong confirmed the duo will work together on US and Asia routes.
He said that SIA wanted to operate its own flights to the US from Heathrow, which will be in competition with Virgin. However, it is unlikely the carrier will harm Virgin’s revenue possibilities as it holds a 49% stake in the airline.
Cheong has one of three SIA seats on the Virgin board. He said Virgin joining Star Alliance would be on the agenda when the board meets. But Sir Richard says he has no plans to join Star Alliance as he feels Virgin’s independence will suffer.
Cheong said there was the possibility of the two airlines putting together a joint proposal to order the planned 550-seater Airbus A3XX double-deck aircraft. Both are known to be interested in what would be the world’s largest aircraft.
Deals with SIA will allow Virgin to offer flights to Australia through Singapore to link up with the Virgin Australia low-cost carrier. Any agreement is likely to end Virgin’s partnership with Malaysia Airlines.