Virgin Australia (VA, Brisbane International) has announced it plans to introduce flights between Australia and Hong Kong in the middle of the year provided it can secure all the necessary regulatory and slot allocations in time.
The carrier said in a filing to the ASX exchange last week that, as part of its proposed alliance with China's HNA Group and its HNA Aviation units Hong Kong Airlines (HX, Hong Kong International) and HK Express (UO, Hong Kong International), Virgin will serve Hong Kong initially before branching off into the mainland Chinese market, presumably with Beijing Capital flights.
These services will operate as codeshares with Hong Kong Airlines, Hainan Airlines (HU, Haikou), and other HNA Group members, with additional onward connectivity to be offered on each party's respective domestic networks. In addition, the sides also plan to cooperate in the realms of route-planning, sales, distribution and marketing, frequent-flyer programs, and lounge access among others.
The venture is currently before the Australian Competition and Consumer Commission (ACCC) awaiting antitrust approval. Last year, the Australian International Air Services Commission (IASC) gave Virgin the go-ahead to operate daily services from an undisclosed "major" Australian gateway to each of Beijing Capital and Hong Kong Chek Lap Kok using A330-200 equipment. Service is to start no later than June 1, 2017.
HNA Group is an existing shareholder in Virgin Australia having acquired a 20% stake in May last year.
