Singapore Airlines and Virgin Australia group of airlines have signed a landmark agreement which will enable them to establish a long-term alliance through codesharing, reciprocal offers for the frequent flyers programmes and more.

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.

The alliance will connect Singapore Airlines' 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, while through the Virgin Australia network Singapore Airlines customers will have access to some 30 more destinations. 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.

The two airlines will lodge an application with the relevant regulatory authorities to enable them to co-operate across a broad range of commercial functions. Approval will allow the airlines to build a deep and integrated alliance with seamless service offerings to the travelling public.

Singapore Airlines CEO Goh Choon Phong said: "Singapore Airlines has been committed to the Australian market for more than 40 years and we are always looking for ways to serve our customers better. With regulatory approval, the partnership will enable us to offer even more choice for domestic and international air travel. Together with Virgin Australia we will provide the public with access to an enlarged network, offering a first-rate, integrated travel experience."

Mr Goh added: "The partnership presents a significant opportunity for Singapore Airlines to drive growth in a manner consistent with our focus on service excellence, product innovation and network connectivity. It will enhance the attractiveness of Australia as a travel destination while also opening up new horizons for travellers from Australia."

Virgin Australia group of airlines CEO John Borghetti said: "We are delighted to be partnering with one of the most respected and innovative airlines in the world. When it first launched in Australia, Singapore Airlines revolutionised international air travel for Australians, providing a world class service to Asia, Europe and beyond."

Mr Borghetti added: "Asia is clearly a critical market for us as we build our international alliance network. Singapore Airlines' extensive network throughout Asia will be particularly attractive to our international business and leisure travellers and this partnership, along with our other alliances, will mean Virgin Australia can now offer truly global flight coverage.

"With the recent re-positioning of our brand and the launch of our product enhancements, including domestic business class, Virgin Australia and Singapore Airlines are ideally suited as airline partners."

As part of the announcement today, Singapore Airlines and Virgin Australia have agreed that from 1 August 2011:

• Singapore Airlines customers will be able to interline on Virgin Australia's domestic network, allowing them to travel through to a range of destinations with one ticket, through-checked baggage, terminal transfers and inclusive meals; and
• Virgin Australia Velocity Gold members and Singapore Airlines KrisFlyer Gold members will have reciprocal access to each airline's airport lounges.

Subject to approval from the relevant regulatory authorities, customers should be able to experience the full benefits of the alliance from late this year.