Flight Centre and Air Australia have both pledged to strengthen their relationship as they brushed aside existing tensions with the signing of a preferred airline deal.
Flight Centre confirmed that the start-up airline had taken "positive steps" to address its concerns and those of insurers, with the airline confident that normal coverage would be re-instated in the short-term.
Meanwhile, Air Australia chief commercial officer Damien Vasta branded the move a "positive development for both companies" and underlined the fledgling carrier's commitment to working closely with its travel agency partners.
The commitment was reciprocated by Flight Centre spokesman Haydn Long who stressed that Flight Centre had always sold Air Australia fares and that the new agreement simply provided structure.
"As we have always maintained, we want Air Australia to succeed and we want to work more closely with it," he said.
Air Australia's 7% commission offer remains in place until March 31.
