Virgin and Alliance Airlines now authorised to cooperate on regional and international routes
The Australian Competition & Consumer Commission (ACCC) has granted interim authorisation for Virgin Australia and Alliance Airlines to cooperate on 41 regional routes and two short-haul international routes.
The ACCC said its preliminary view is that these arrangements are likely to result in a public benefit by assisting in the re-establishment of Virgin’s national network of routes, thereby promoting competition in airline services.
“The COVID-19 pandemic has significantly disrupted the aviation industry in Australia,” ACCC commissioner Stephen Ridgeway said.
“This interim authorisation will help facilitate a more competitive aviation landscape as Australian consumers resume travelling and demand for flights increases.”
The cooperation will allow Virgin and Alliance to share information and to agree on service capacity, schedules and potentially revenue sharing on the routes on which they operate, including for new routes not currently serviced by either airline.
“Cooperating to provide services on these regional routes will assist Virgin Australia and Alliance Airlines to efficiently manage capacity and quickly respond to increases in demand as travel restrictions ease,” Ridgeway said.
“We acknowledge there is some urgency to this matter. A delay in Virgin Australia fully re-establishing its network, while other airlines are increasing services in response to greater demand as travel restrictions ease, is likely to result in less competitive markets.”
“This is why we have given this arrangement interim authorisation while we consider the substantive application.”
The cooperation will mean that Virgin and Alliance will not compete with each other on the routes covered by the agreement.
“Our preliminary view is that any public detriment resulting from reduced competition between Alliance Airlines and Virgin Australia is likely to be limited, given Alliance Airlines’ limited number of scheduled regular passenger services,” Ridgeway said.
“We will consider this issue further in the course of our review of the substantive application.
“We consider that other airlines, including Qantas Airways and Qantas-owned Jetstar, are likely to compete strongly with Alliance Airlines and Virgin Australia on many of the routes covered by the agreement.”
Commenting on the ACCC’s interim authorisation, a Virgin spokesman said: “As a leading Australian airline, we recognise our role in providing heartland communities and businesses in regional Australia with choice and convenience.
“Through this initiative, we’ll be able to further cooperate with Alliance on new destinations and travel arrangements for customers.
“We look forward to continuing our long-standing relationship with Alliance Airlines.
The interim authorisation comes after both carriers sought approval from the ACCC to cooperate last month.
The cooperation will be key to Virgin’s post-administration rebirth, with new boss Jayne Hrdlicka outlining the carrier’s game plan just yesterday.
It also comes as the ACCC continues to investigate Qantas’ acquisition of a 19.9 per cent stake in Alliance last year, making it the regional airline’s single biggest shareholder.
Having granted interim authorisation on the Virgin-Alliance cooperation, the ACCC is seeking feedback on the substantive application for authorisation.
The competition watchdog is set to deliver a draft determination on the Virgin and Alliance pact in either January or February next year, with a final determination to be handed down in March.
Featured image source: iStock/MicroStockHub
Latest News
The Walshe Group Announces Two Key Appointments
What we really want to know is whether they got joint or separate welcome parties.
FAMIL: Agents explore the delights of Mauritius on 7-day tour
Go green with envy as you read this fabulous itinerary! Time to book that second honeymoon.
Hamad International recognised as world’s best airport at 2024 Skytrax World Airport Awards
Hamad airport is so good it is almost considered a destination in itself. Ballina, up your game.
Saudi Arabia highlights tourism investment opportunities at global investment event
Now is the time to start looking at Saudi Arabia if you are not already. There's big things to come.
“Rampant” – Aussies warned as dengue fever cases spike in Bali
Worried about Bali belly? Now you have something else to worry about.
TTC Tour Brand reveals slew of deals across operators including Trafalgar and Contiki
Everybody loves a bargain and you could do lot a lot worse than check out these deals from TTC!
Fiji Airways partners with Porter Airlines in US growth bid
Any initiative that gets more people visiting the delights of Fiji is a good initiative.
Flight Centre launches CruiseHQ – a marketplace exclusively for agents
The cruise industry has surpassed pre-Covid levels so this isn't one to miss!
Feeling festive? Wendy Wu tours unwraps Christmas collection
Get the Christmas hols booked now and avoid spending it with that elderly relative with dubious political views.
OPINION: In a world of screens, we crave experience
If you get feelings of deep shame and regret when you see your screen time, don't worry - you're not alone.
Sun Princess: High-end dining and world class entertainment awaits
If you are a foodie and you are not currently on the Sun Princess, we really have to ask - what are you doing?
YouGov: 2 in 5 Aussies would pay more for a sustainable hotel
If you want to be REALLY sustainable you can go camping. You just might lose the will to live.
“Can planes swim?” – Planes become boats as Dubai Airport is savaged by severe storm
Unfortunately, "can planes swim?" is a real life question and not an opener to a really bad joke...
Explora journeys reveals bespoke outdoor furniture designed by Matteo Nunziati
This is making your plastic table and chairs look really bad now, isn't it?
Bangkok Airways targets growth with renewed Sabre deal
Two stories abut Sabre's growth in one week and its only Wednesday! Watchout world.
PR agency Example wins pitch for InterContinental Sydney
We also went in for the contract but they said that a 'Be Our Guest'- themed TikTok was unoriginal! The cheek.
Norwegian Cruise Line reveals culinary experience aboard Norwegian Aqua
Once again, this TW journalist REALLY regrets writing this before getting lunch.
Signature Queensland hosts luxury tourism event
Known for its tropical beaches and unique wildlife, Queensland also offers luxury.
Capella Sydney recognised in prestigious Travel + Leisure’s 2024 ‘it list’ of best new hotels
You know that 'it girl' at school who everyone wanted to hang out with? Capella is the hotel version of that.
Rex launches 72-hour fare sale with NO school holiday blackout so you can take your kids (if you want to)
Sadly, leaving your children at home whilst you go on holiday is generally frowned upon.
Adventure World offers chance to connect with “heart and soul” of the US
I mean who hasn't dreamed of a road trip around the US?! Go with Adventure World and you're less likely to get lost.
Fiji’s family-owned luxury resort Likuliku Lagoon launches its own app
We were relieved to find out that having a "concierge in your pocket" referred to an app on your phone.
Hawaii: The US’ laid-back front door for Australians
If you needed another sign that you should definitely head to Hawaii - this is it!
Sabre targets Asia Pacific growth with latest hire
Call the Avengers! Sabre continues its bid for world domination with latest hire.
Air New Zealand signs its largest EVER deal for sustainable aviation fuel
Air New Zealand makes huge step towards sustainable travel. We bet it recycles its rubbish properly too.
IHG Hotels & Resorts continues regional growth with Sunshine Coast Holiday Inn
This Holiday Inn looks considerably flashier than some of the ones we have stayed at in our time.
Budget carrier Scoot welcomes first of 9 E190-E2 aircrafts
Here at TW we would like to offer Embraer E190-E2 a warm welcome! It's not easy being the first of the fleet.
Singapore Airlines grows group passenger traffic by 13.9% for March
This is one of the few situations where an increase in traffic is a good thing.
Number of Aussies going on cruises beats pre-pandemic levels
To be honest, if being stuck inside for two years doesn't give you the travel bug, then nothing will.
Vietjet slashes prices on flights across Vietnam, India & Australia
You can now fly to Vietnam for less money than a night out in Sydney or Melbourne. Time to reconsider the budget.
The Australian Hotels Association (WA) names accommodation excellence award winners
Think blowing up the airbed for your mate qualifies as accommodation excellence? Think again.
Abercrombie & Kent launches Peruvian riverboat tour
If you think being left at a port is scary? Imagine being stuck in the Amazon.
Club Med Bali reveals last-minute group travel deal
If you haven't frolicked across a beach in Bali with your colleagues have you even lived?
Regent Seven Seas Cruises grows sales team across Australia & New Zealand
It is only Monday and Regent Seven Seas Cruises is already announcing hires. Great stuff!
Out of the Ordinary Outback offers caravanners and campers a free night
It's the perfect getaway if your neighbours are starting to drive you a little insane.
Luxury Escapes reveals third signature series tour with Miguel Maestre
We would recommend reading this after lunch, otherwise you risk slobbering at your desk.