Virgin Blue and Skymark see sharp share reductions; Cathay premium revenues below pre-crisis levels

Shares in Virgin Blue slumped 7.0% yesterday to AUD0.40 cents, after the nation's competition regulator (ACCC) issued a draft determination proposing to block a planned alliance with Air New Zealand. The ruling was Brisbane-based Virgin Blue's second rejected collaboration in as many days after the US Department of Transportation blocked a proposed tie-up across the Pacific with Delta Air Lines.