An alliance between Air New Zealand and Singapore Airlines will also cement ties between a block of airlines that includes Virgin, and ramp up pressure on Qantas which faces a loss of up to $300 million in the first half. Qantas is undertaking a strategic review, which includes the potential for a partial sell off of its prized frequent-flyer division, while it waits to hear whether the federal government will grant it a form of financial assistance. Air New Zealand also formed a strategic alliance with Cathay Pacific last year.