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Virgin and Singapore sign new deal

Crew members from Virgin Australia and Singapore Airlines pose for cameras Photo: Munshi Ahmed/Bloomberg

Virgin Australia has announced a major codesharing deal with Singapore Airlines on domestic and international flights, opening up more than 400 destinations for customers and inevitably leading to more aviation jobs.

“With the extensive network connectivity between the two of us that we will be able to provide to a travelling public and we’re very excited about this long term relationship that we can establish with Virgin Australia,” said Singapore Airlines chief executive Goh Choon Phong.

The creation of jobs is a crucial boost, both for those seeking work in the industry and anyone in the tourism industry who can expect a knock-on effect further down the line.

John Borghetti, Chief Executive of Virgin, said that it will vastly improve the company’s competitiveness. “It gives us over 400 destinations globally when we add up all the alliances, and we then are able to compete much, much more vigorously with other large players in our home market.”

He was also keenly aware of the impact on job creation. “The whole point of the alliance is making us more competitive in Australia. And I have said for quite sometime that our intent is not to off shore jobs but rather bring jobs in and opening up new routes is an enormous boost not just to tourism but frankly to jobs because if you believe in the multiplying effect that for every hundred jobs created in aviation 600 are created downstream. That is a very good economic outcome.”

The two companies will sell tickets on each other’s flights and coordinate schedules.