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Virgin Australia splits with Air NZ, hooks up with China

The Virgin Australia and Air New Zealand split may still be fresh, but the Australian carrier seems to have already moved on to a new ally.

The Virgin Australia and Air New Zealand split may still be fresh, but the Australian carrier seems to have already moved on to a new ally.

 

The carrier found love in a somewhat expected place (China) this week, when Hainan Airlines’ parent company, HNA, purchased $159 million in Virgin shares.

The acquisition is part of a new strategic alliance that Virgin says will benefit both companies and Australian holidaymakers.

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In addition to HNA becoming a 13 percent owner of Aussie airline, the partnership will open Australia up to China as the carrier looks to introduce direct flights between the countries in the coming year.

The alliance will also involve co-operation on code-sharing, frequent flyer programs, lounge access and promotion of tourism and business travel.

Virgin Australia planes

Virgin’s head honcho, John Borghetti, said tapping into Australia’s fastest growing “and most valuable inbound travel market” will allow the airline to leverage “the opportunities offered by China”.

Also excited by the prospects of the partnership was Australia’s Tourism & Transport Forum (TTF), which believes it will accelerate and direct flights to the “booming China market”.

This week, Virgin Australia, with the help of Sir Richard Branson, also launched an arrangement with Greening Australia to help repair the Great Barrier Reef.

Do you think Australia will benefit from Virgin Australia’s new alliance?