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11 July, 2022

ACCC says proposed Virgin codeshare agreements will benefit travellers

Melbourne, Victoria / Australia- January 28, 2019: Tails of 3 Virgin Airlines planes with blue sky in the background and trucks

The Australian Competition & Consumer Commission (ACCC) has proposed granting authorisation for Virgin Australia to enter codeshare pricing arrangements with its international airline partners for 5 years.

A codeshare agreement allows two or more airlines to market the same flight under their own airline designator and flight number as part of their schedule.

This arrangement will mean that Virgin’s international airline partners will set fares for international long-haul flights that Virgin can market and resell.

The ACCC said it invites submissions on the draft determination by 29 July.

“The ACCC’s preliminary assessment is that these arrangements are likely to result in more choice and greater convenience for consumers looking to book international trips that include connecting flights operated by Virgin Australia,” ACCC deputy chair Mick Keogh said.

“There will be no competitive overlap between the parties on any route under these proposed arrangements, and other airlines, including Qantas, will provide competition to Virgin Australia and its partners on those particular long-haul international routes.”

Virgin Australia has been granted interim authorisation to engage in the proposed conduct with United Airlines, Qatar Airways and Singapore Airlines by the ACCC while it considers the substantive application for authorisation.

“These arrangements are likely to promote competition in long-haul international services, by assisting Virgin Australia to re-establish its international operation in the longer term,” Keogh said.

On 12 May 2022, the ACCC granted interim authorisation to allow Virgin Australia to enter into a proposed codeshare pricing arrangement with United Airlines after it dropped its previous partner Delta Airlines in December last year.

Subsequently, Virgin Australia requested the ACCC grant interim authorisation to allow it to enter into proposed codeshare pricing arrangements with Qatar Airways and Singapore Airlines.

Virgin Australia also stated that it is considering similar arrangements with other airlines, such as All Nippon Airways, Air Canada and Hawaiian Airlines.

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accc Australian Competition Consumer Commission codeshare agreement delta airlines Mick Keogh qatar airways singapore airlines united airlines virgin australia