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Alliance Aviation Services Limited (‘Alliance’) and Virgin Australia Holdings Limited (‘Virgin Australia’) today announced that they have entered into a 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, and technical expertise. This will allow Alliance and Virgin Australia to develop a compelling customer proposition and to more effectively compete in the Australian FIFO market.

Alliance Managing Director, Scott McMillan said: “We look forward to partnering with Virgin Australia to leverage the operational and commercial expertise of our respective businesses. With our combined services and expertise we see a great deal of logic in working together,” Mr McMillan said Virgin Australia Group Chief Executive, John Borghetti said: “This partnership will enable Virgin Australia and Alliance to develop and grow their competitive position in the charter market,” Mr Borghetti said. “We look forward to collaborating with Alliance to further build a competitive, efficient and sustainable charter business,” Mr Borghetti said. The proposed strategic partnership is subject to conditions and ACCC approval.

Key Terms of the Proposed Commercial Partnership*

The key terms of the Proposed Commercial Partnership are as follows:

• 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 Regional Airlines will enter into agreements to provide and procure services for each other on a preferential basis. This includes, but is not limited to, aircraft procurement, spare parts pooling, maintenance and ground handling services.