Virgin Australia today welcomed the ACCC's draft approval of its expanded alliance with Skywest Airlines.

The alliance, which was granted interim approval on 25 January 2012, will allow the two airlines to jointly contract with corporate customers, offering them an integrated travel solution including scheduled and charter services to regional, domestic and international destinations.

Virgin Australia Group Executive of Alliances, Network and Yield, Merren McArthur said the expanded alliance would enhance the airline's ability to meet the growing demand from the resources and mining industries.

"We welcome the ACCC's draft approval for our proposed expanded alliance with Skywest Airlines today.

"The alliance will allow us to offer corporate customers a comprehensive travel package integrating Skywest's charter services with Virgin Australia's extensive domestic network.

"It will also allow us to extend our Velocity Frequent Flyer program to Skywest's charter services, enabling joint corporate customers to earn frequent flyer Points and Status Credits on those services and access preferred seating, priority check-in and Virgin Australia lounges', Ms McArthur said.

Virgin Australia said the alliance was an important part of the airline's strategy to increase competition in the Australian corporate travel market.

The ACCC is expected to make its final ruling following receiving further submissions from the applicants and interested parties in relation to this draft.