Virgin Australia finds regional solution with Alliance Airlines

Virgin Australia appears to have found a way to maintain a regional network without suitable aircraft.

Alliance Airlines is considered to have the right size aircraft for regional routes, with a fleet of Fokker 50s, 70s and 90s. Picture: Patrick Woods / Sunshine Coast Daily.

Getting rid of ATR turboprops from its fleet was always going to pose a problem for Virgin Australia in terms of servicing regional centres.

With the capacity to seat 176 people, Boeing 737s are simply too big for routes such as Cloncurry-Mount Isa, Sydney-Tamworth and Sydney-Hervey Bay.

But the airline appears to have found a solution: by increasing its co-operation with Alliance Airlines on up to 40 regional routes and two short-haul international runs.

With a fleet of Fokker 50s, 70s and 100s, Alliance has the “right-sized” aircraft for the routes in question, which are likely to ­include Brisbane to Mount Isa, Cloncurry, Emerald, Rockhampton, Gladstone, Bundaberg and Port Macquarie.

Sydney to Albury, Tamworth and Port Macquarie may also be on the cards, along with Melbourne to Mildura, Newcastle and Kununurra and Cairns to Darwin and Maroochydore.

Prior to the COVID crisis that drove Virgin Australia into administration with debts of $7.1bn, ­Alliance was operating flights ­between Brisbane and Port ­Moresby for the larger carrier.

Under a new era of co-operation, that could be extended to ­Honiara in the Solomon Islands.

An application to the Australian Competition & Consumer Commission for greater co-operation between the two carriers noted that in order to service ­regional routes profitably airlines had to match aircraft type and ­capacity to the level and nature of demand.

The application also answered the question of “what’s in it for ­Alliance?”, pointing out the deal would provide the small operator with access to Virgin’s broader network, supply channels and ­association with its loyalty ­program. Submissions to the proposal are now being sought by the ACCC. The Australian understands Qantas will not object.

Robyn Ironside