The Australian Competition and Consumer Commission (ACCC) has granted authorisation for Virgin Australia and Singapore Airlines (SIA) to enter into an integrated network aviation alliance.
"The ACCC considers that the alliance is likely to lead to increased competition for international air passenger services," ACCC chairman Rod Sims said in a statement.
According to the ACCC, the alliance is unlikely to be significantly anti-competitive in any of the relevant markets.
The parties currently compete on a limited number of routes where competitor airlines are in a position to constrain the alliance's price and service decisions, added the ACCC.
Regarding SIA's shareholding in Tiger Airways, the ACCC said that the alliance is unlikely to lessen Tiger Airways Australia's incentive to compete in the domestic market.