Virgin Blue to code share with Virgin Atlantic

Richard Branson's international airline Virgin Atlantic will code share with Australian domestic carrier Virgin Blue from next month.

The agreement, effective from July 17, means travellers to Australia on Virgin Atlantic, which has been operating in Australia for six months, can book domestic flights on Virgin Blue for travel within the country.

"The development allows Virgin Atlantic, which currently fly daily from Sydney to Hong Kong and London, to extend its offering -- through a code share service operated by Virgin Blue -- to Melbourne, Brisbane, Adelaide, Cairns, Gold Coast and Coolangatta," it said.

The airline said travellers would enjoy "smooth and hassle" free domestic and international connections.

"It's an exciting step forward as it streamlines the process of booking Virgin all the way making it easier for travel agents to book our guests on both airlines," Virgin Blue chief executive Brett Godfrey said.

"Importantly it also signals how, together, we can make a growing contribution to Australian inbound tourism."

Meanwhile, Virgin Blue has launched daily flights between Brisbane and Great Barrier Reef airport on Hamilton Island.

"While it's early days we are also pleased our forward bookings for Hamilton Island flights are trending well and we believe it's a reflection on the popularity of the destination," Mr Godfrey said.

"We will keep an eye on demand and look at additional route opportunities in and out of Hamilton Island if we determine the support warrants us to commit even more resources to the region."

The direct service into Hamilton Island from Brisbane will offer connections to and from Sydney, Melbourne, Canberra, Perth, Darwin and New Zealand.

One way fares from Brisbane start from A$129 ($141 on the internet or A$139 ($152) on the phone.

- AAP