Is there a new airline alliance in the offing?

This week, Sir Richard Branson announced that four of his Virgin-branded airlines will allow travelers to exchange frequent flyer points between one another for the first time, a move that could signal the start of closer integration between the brands.

From August 10, passengers flying on Virgin Atlantic, Virgin America and V Australia/Virgin Blue will be able to earn miles or points for their flights that can later be redeemed under any of the carriers' frequent flyer programs.

A frequent Virgin America flyer, therefore, could exchange their points for an international Virgin Atlantic flight, or a frequent Virgin Atlantic passenger could use their points for onward connections in Australia using V Australia/Virgin Blue.

Virgin America and Virgin Atlantic also announced that they would go one step further, offering an agreement that enables passengers to take multiple flights on a single ticket, an arrangement already in place between Virgin Atlantic and V Australia/Virgin Blue.

The only drawback for passengers could be that if a passenger is a member of more than one of the Virgin airlines' loyalty programs (Flying Club, Elevate or Velocity), only one account is eligible to earn points, meaning travelers must choose.

If the integration leaves travelers thinking that loyalty programs and interline flights sound like an alliance along the lines of Oneworld, Star Alliance or SkyTeam, they're not the only people.

According to Mark Ashley of travel blog Upgrade: Travel Better, the move amounts to the groundwork for a new airline alliance.

"It’s still very early, but if things go as planned, this could lead to a real competitor to Star Alliance, oneworld, or SkyTeam,' writes Ashley on his blog.

"How good this alliance ends up being for consumers remains to be seen. For now, it’s not a huge win... But keep your eyes on this. It could get big."

http://www.virgin.com/
http://www.upgradetravelbetter.com