Virgin Atlantic, which has launched its inaugural flight between London and Sydney, said the code-sharing arrangement would mean a single Virgin Atlantic code for passengers flying on both airlines to, from and within Australia on the designated services.
The agreement will start in April.
The agreement will initially be for passengers travelling to and from London via Hong Kong to Sydney with a code-share service operated by Virgin Blue to Brisbane, Coolangatta and Melbourne. Plans are under way to expand the agreement to other ports.
Virgin Atlantic will use Airbus A340-600 aircraft on the London to Sydney route, which will take 22 hours 40 minutes, including a 90-minute Hong Kong stopover.
Virgin Atlantic "is cost-competitive and very attractive in marketing", said Jim Eckes, managing director of Indoswiss Aviation, which provides advisory services for the industry.
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