Virgin Australia Ltd. (VBA.AU) said Thursday it has won part of mining giant Rio Tinto Ltd.'s (RIO.AU) global contract for air services, a sign the airline is gaining traction in its push to secure a larger slice of Australia's lucrative business travel market.

At the same time, larger rival Qantas Airways Ltd. (QAN.AU) said it has also won some more business from Rio Tinto by signing a new three-year agreement with the miner. Qantas said the new agreement will see it continue to be Rio Tinto's "major air services provider" for both its Australian and international operations.

Spokeswomen for Virgin Australia, Qantas and Rio Tinto declined to comment on the proportion of the contract each company has won.

In separate prepared statements, Rio Tinto said Qantas's recent purchase of resource charter airline Network Aviation will support a range of the miner's projects in Western Australia state. But it also said the agreement with Virgin Australia will provide greater flexibility to travelers, particularly in the highly-contested Western Australian market.

Virgin Australia said the contract is "one of our most important business wins yet".

Both airlines are competing for customers in what's known as the "fly-in, fly-out" market for miners temporarily staying on site.

Virgin Australia Chief Executive John Borghetti, a former senior Qantas executive, is overhauling the airline by putting business class seats in its aircraft for the first time and forging alliances with international carriers to expand its global reach. He wants to boost its share of Australia's business travel market to 20% from just over 10% currently.

The airline won 39 new corporate accounts last financial year including Google Inc. and said in August it has gained more accounts since June 30 including construction giant Leighton Holdings Ltd.

Virgin Australia shares added once cent to 31.5 cents Thursday, continuing a six-week rally that has gone against the wider market. Qantas added 5.1% to A$1.445, although the airline announced after the market closed that over 5,700 of its passengers will be impacted by more strike action on Friday.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

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