Singapore Airlines and Virgin Australia have formed an alliance and plan to sell seats on each other's international and domestic flights.
If the deal is approved by the Australia Competition & Consumer Commission, they intend to code-share on flights, co-ordinate schedules and offer passengers reciprocal frequent flyer benefits and lounge access.
Virgin has been looking for a partner in Asia, after forming similar alliances with Delta in the United States, Etihad in the Middle East and Air New Zealand on trans-Tasman flights.
Virgin Australia was previously known as Virgin Blue, but rebranded itself last month in an attempt to increase its share of the Australian business market from Qantas.