Alliance Aviation Services and Virgin Australia have announced the details of their long-term strategic partnership.
The partnership will see the airlines work together to grow their respective charter businesses. Both airlines will benefit from the ability to leverage each other's strengths, particularly in terms of network, brand, product and service offering as well as technical expertise.
This will allow Alliance and Virgin to develop a compelling customer proposition and more effectively compete in the Australian FIFO market.
Alliance Managing Director, Scott McMillan said that they were looking forward to partnering with Virgin Australia to leverage the operational and commercial expertise of each business.
"With our combined services and expertise we see a great deal of logic in working together", he said.
Virgin Australia Group Chief Executive, John Borghetti said that the partnership would enable Virgin and Alliance to grow and develop their competitive positions in the charter market.
"We look forward to collaborating with Alliance to further build a competitive, efficient and sustainable charter business," he said.
Key terms of the proposed commercial partnership include:
- Alliance and Virgin Australia Regional Airlines will form a Charter Partnership to jointly grow their charter businesses. Existing charter contracts will remain with their current operator, with all new contracts to be operated under the Charter Partnership.
- Alliance and Virgin Australia will enter into agreements to provide and procure services for each other on a preferential basis. This may include aircraft procurement, spare parts pooling, maintenance and ground handling services.