Alliance Aviation Services says it will operate flights on behalf of Virgin Australia until the end of 2021 under a new contract.
Virgin Australia chief executive John Borghetti has questioned plans from Cathay Pacific and Qantas to expand a codeshare agreement to include each other's flights from the key markets of Brisbane, Melbourne and Sydney to Hong Kong.
Qantas has sought to reassure regulators its proposed codeshare with Cathay Pacific would not harm competition and instead offer travellers more choice for travel between Australia and Asia.
Alliance Aviation Services has reported 40 per cent lift in 2018/19 first half profit and expects a strong second half amid ongoing improvement in the resources sector.
Qantas says it has cancelled its outstanding order for eight A380s that has been on the books since 2006 after discussions with Airbus.
Qantas has bought a 19.9 per cent stake in Alliance Aviation Services and signalled its intention to increase that shareholding over time.
