Joining hands with Singapore Airlines could be a potential game-changer for Virgin Australia in its domestic market, the Australian carrier's CEO John Borghetti told Airline Business at the IATA AGM.
"This changes the balance of power in Australia big time as we get feeder traffic from SIA to our domestic network. This is a key plank towards us getting a bigger share of the corporate market," he added. "We can now compete much more vigorously against larger players in our own market."
Virgin Australia's target is to get 30% of the domestic market by capacity, and 20% of the corporate market. "Could it lead to more? Sure. But it is far more important for me to get the revenue mix right rather than increasing market share," said Borghetti.
As part of its plans for the Australian market, Virgin is also relaunching its frequent flyer programme in the next few months. Passengers on Singapore Airlines and Virgin Australia flights will be able to earn miles on either programme, and have lounge access as well, as part of the alliance.
"The growth potential this opens up for all of Australia, and let's not forget regional communities which are very important, including mining businesses. It will be very competitive programme, and very elevated from where it is today," he said.
"Frequent Flyer participation is an important part of this partnership. One of the propositions we haven't been able to offer in the past is for Australia-based customers to redeem Singapore Airlines KrisFlyer points, so this will open up the world for that."
Source: Air Transport Intelligence news
