Virgin Blue and United Airlines announce code share agreement

The code share agreement, announced today at the Sydney Express terminal, will mean a single United Airlines code for passengers flying on both airlines.

General Manager United Airlines Australia, Stephen Pearse, said the agreement, which will soon come into effect, would provide greater choice for Australians travelling to the US.

"Both Virgin Blue and United Airlines are focused on giving customers the freedom of choice for air travel, which is what this code share agreement will do," Mr Pearse said.

"This agreement means we are now able to offer customers access to all points in Australia with easy domestic connections and smoother transfers.

"Passengers will benefit from United's extensive US network and Virgin Blue's broad Australian coverage."

Virgin Blue Chief Executive Brett Godfrey said the agreement is another step to ensure that every segment of the Australian market is not subject to a monopoly.

"With this new service, Virgin Blue can address the needs of inbound tourism as well as Australian's travelling abroad, without compromising the highly efficient and cost effective business model we operate," Mr Godfrey said.

Mr Pearse said the agreement would contribute to United's overall plans to rebuild business in Australia.

"We're excited to be entering into a code share agreement with one of Australia's business success stories. Our business partnership is a good fit: we both focus on providing passengers with high levels of customer service and a friendly, reliable travelling experience, at a highly competitive price," Mr Pearse said.

"Both United and Virgin Blue are leaders in our respective areas. United is the industry leader in Australia-US travel and is the only airline to provide daily services from Sydney to Los Angeles and San Francisco and from Melbourne via Sydney to both US cities, while Virgin Blue is Australia's leading low fare airline."

Brett Godfrey said the agreement was part of Virgin Blue's business expansion plans.

"The Brisbane code-share is the first step in developing a world class international product. It's all about fair competition and providing travellers with choice, which are the core values of Virgin Blue."

Initially, the Sydney-Brisbane route will be code shared, but both airlines will look at other opportunities.

Virgin Blue currently services every State and Territory in the country with its fleet of 17 aircraft, including the brand new Next Generation Boeing 737 aircraft, Virgin Blue was recently named "best low fare airline - Australasia" in the Skytrax Airline of The Year 2002 survey, the industry's leading passenger survey.

United Airlines offers nearly 1,700 flights a day to 119 destinations in 26 countries and two US territories. United Airlines is a founding member of the Star Alliance, the first comprehensive global airlines network. United and its Star Alliance partners offer flights to 700 destinations in 124 countries.

Australia's Response

Today’s announcement of a code share agreement by Virgin Blue and United Airlines was good news for Australia’s tourism industry, Australian Tourist Commission (ATC) Managing Director Ken Boundy said.

“The collapse of Ansett left a void in Australian aviation with no domestic carrier aligned to the Star Alliance group, including United Airlines,” he said.

“This new agreement will make travel across Australia easier for UA passengers, with domestic connections to cities across Australia on the Virgin Blue network. 

“The new code share will offer seamless travel to Virgin Blue destinations for US visitors travelling with United Airlines - with ease of booking and smooth transfers in Australia. 

“UA is an important carrier for Australia with daily services from the US to Sydney and Melbourne, and the new agreement will help to carry international visitors beyond the eastern cities. 

“Since the collapse of Ansett, Star Alliance has had no domestic airline carrier in Australia, which has had a significant impact on international visitation and dispersal across the country. 

“While Australia’s tourism industry continues to face a number of aviation challenges, this is definitely a step in the right direction."

Mr Boundy said the ATC would continue to work with all airline and industry partners in the US to rebuild Australia's share of the US travelling market following the events of last year.