Aviation

Virgin seeks approval for alliance with regional carrier… whose biggest shareholder is Qantas

Huntley Mitchell

Huntley Mitchell

Virgin Australia and Alliance Airlines have applied for authorisation to cooperate in relation to the provision of services on around 40 regional routes and two short-haul international routes.

Both airlines are seeking authorisation “in order to efficiently manage capacity and quickly respond to changes in demand due to the COVID-19 pandemic”, according to the Australian Competition & Consumer Commission (ACCC).

This includes sharing information, including in relation to costs, willingness to operate, capacity, utilisation, anticipated demand and pricing about the relevant routes (details on these routes can be found in the ACCC application document).

The proposed alliance between Virgin and Alliance would also see both agreeing on capacity, flight schedules, and aircraft type, including whether a carrier will suspend or continue operations, which carrier will operate the relevant routes and under what commercial arrangements (wet lease or codeshare, or a revenue-sharing model).

Virgin and Alliance would also put in place “temporary commercial arrangements that are most suitable for the relevant route, considering demand and risk profile in the exceptional current market conditions”, the ACCC said.

The cooperation between the two airlines, if authorised, could also see both enter “risk- and revenue-sharing mechanisms and agreements as to price”.

“The applicants have also requested interim authorisation to facilitate the immediate planning and coordination of services on the relevant routes prior to the ACCC’s final determination in relation to the substantive application for authorisation,” the competition watchdog noted.

The ACCC is accepting submissions on the interim authorisation request received by 10 November 2020 and on the substantive application for authorisation by 20 November 2020.

It will make a decision regarding interim authorisation of Virgin and Alliance’s proposal in the week commencing Monday 16 November, before a draft determination will be handed down in either January or February 2021.

The ACCC expects to announce its final determination on the proposed alliance in March next year.

The application comes as Virgin prepares to emerge from voluntary administration under new owner Bain Capital and a new CEO by the end of this month.

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.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Wholesalers

OPINION: Why we need women to tackle the climate crisis

by Dr Susanne Etti

Here, Intrepid Travel’s environmental impact specialist, Dr Susanne Etti, makes the case for empowering women as a way of fighting climate change.

Share

CommentComments

Aviation

Is former Virgin CEO Paul Scurrah set to fly back to Rex?

by Huntley Mitchell

Paul Scurrah has been laying low since exiting Virgin late last year, but the speculation wheel has started to turn around his next role.

Share

CommentComments

Travel Agents

“We need to address the elephant in the room”: travel agent implores government to make ‘that announcement’

by Linda Forster

An Aussie agent has waxed poetic about the travel industry’s struggles in this impassioned plea for the government to stop turning a blind eye.

Share

CommentComments

Cruise

Ponant appoints BDM for New South Wales and the ACT

The luxe cruise line has hired a new local BDM … as in a business development manager, not a basketball dunking master or a bad decision-maker.

Share

CommentComments

Aviation

Will you accept this flight? Stood-down Jetstar pilot becomes Australia’s new Bachelor

by Ali Coulton

After having his career put on hold by COVID-19, this super-handsome, self-professed romantic took the obvious course of action and became Australia’s newest Bachelor!

Share

CommentComments

Destinations

Australia takes out Tripadvisor award for world’s best beach

Your clients don’t need to travel internationally to check out this year’s winner, which is a relief, because they’d be waiting a while to visit if it was overseas.

Share

CommentComments

Events

MTA agents flock to the Gold Coast for long-awaited Virtuoso event

After a few false starts, the team at MTA have finally got their hands on the latest in luxury travel intel from Virtuoso.

Share

CommentComments

Travel Agents

Collapse of Helloworld agencies prompt urgent warning from business restructuring expert

Struggling travel companies are being urged to seek help before JobKeeper is wound back.

Share

CommentComments

Aviation

Flight forced to perform emergency landing after cat attacks pilot

Plane passengers have been left bemused and a bit ticked off after pilots were forced to turn their flight around due to a ferocious feline.

Share

CommentComments

Destinations

Hamish Blake and Zoe Foster-Blake return for Tourism Australia’s latest marketing push

Australia’s fave power couple are back to promote the country’s domestic tourism greatness.

Share

CommentComments

Tourism

STUDY: 86 per cent of Aussies back the ‘vaccine passport’

It looks like most of us are ready and raring to pack up our suitcases and jump on the next plane out of here.

Share

CommentComments

Cruise

Carnival is selling its very own cruise-themed Monopoly game

Unfortunately, even the mere mention of Monopoly is banned in the Travel Weekly office after “the incident”.

Share

CommentComments