VIRGIN-HNA ALLIANCE GETS PRELIMINARY APPROVAL

VIRGIN-HNA ALLIANCE GETS PRELIMINARY APPROVAL
VIRGIN Australia's proposed alliance with HNA Aviation, Hong Kong Airlines and HK Express has been given interim approval by the ACCC.

If the final ruling, due in May or June, is positive, the Brisbane-based airline will commence direct flights between Australia and Hong Kong and Australia and China, which it will codeshare with HNA.

The airlines will also introduce a reciprocal frequent flyer partnership and codeshare on domestic routes.

HNA Group owns 13 per cent of Virgin Australia Holdings as part of a consortium of five international airlines that own more than 80 per cent of the company.

At the time alliance was proposed on 17 February, Virgin Australia Group CEO John Borghetti said the alliance would be a "game changer" for travel between Australia and China.

"The alliance will accelerate and support our access to the Chinese market, which is Australia's fastest growing and most valuable inbound travel market," says Borghetti.

"HNA Aviation fly nearly 100 million passengers each year and we look forward to working collaboratively with them to drive inbound visitation to Australia, resulting in significant benefits for the Australian tourism industry and broader economy.

"Importantly, this strategic alliance with HNA Aviation, Hong Kong Airlines and HK Express is a key plank in Virgin Australia's International strategy and will help our business deliver long-term growth and success."

Virgin Australia is trading up 2.63 per cent at $0.195 per share at 2:21pm AEDT on the ASX this afternoon.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Interest rates: To fix or not to fix?
Partner Content
Interest rates are on the move as evidenced by another rise issued by the Reserve Bank ...
WMS
Advertisement

Related Stories

ACCC concerned Qantas’ acquisition of Alliance would lessen FIFO competition

ACCC concerned Qantas’ acquisition of Alliance would lessen FIFO competition

Australia’s competition watchdog has today raised preliminary...

Super Retail Group profits slide despite record sales

Super Retail Group profits slide despite record sales

Despite a strong second-half performance boosted by online sales in...

Corporate Travel Management storms back into profit as businesses get flying again

Corporate Travel Management storms back into profit as businesses get flying again

Corporate Travel Management (ASX: CTD) has stormed back into the bl...

US investment firm Thoma Bravo zooms in on $1 billion deal for Nearmap

US investment firm Thoma Bravo zooms in on $1 billion deal for Nearmap

Leading location intelligence and aerial imaging specialist Nearmap...