Australia Regulator To OK Virgin Australia-Singapore Airlines Alliance

Australia's competition regulator said Thursday it intends to approve a proposed alliance between Virgin Australia (VBA.AU) and Singapore Airlines Ltd. (C6L.SG), which is likely to make the Australian airline more competitive against the likes of national flag carrier Qantas Airways Ltd. (QAN.AU).

Under the terms of the alliance, the two airlines plan to cooperate on their Australia to Singapore services and connecting international and domestic routes, including joint pricing and scheduling.

The Australian Competition and Consumer Commission said in a statement it expects the alliance will result in material benefits to the public, including enhanced products and services.

The airlines compete on a limited number of routes where there are a number of competitors and the ACCC said its view is that the alliance is unlikely to result in significant anticompetitive detriment in any of the relevant markets.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]