11-May-2012 8:05 AM

ACCC authorises Virgin Australia-Skywest Airlines corporate alliance

Australian Competition and Consumer Commission (ACCC) announced (10-May-2012) it authorised the Virgin Australia-Skywest Airlines corporate alliance for a period of five years. The alliance will allow the carriers to offer "bundled air passenger transport services to corporate customers who seek an integrated suite of charter, domestic and international services, such as mining companies with large fly-in-fly-out workforces". ACCC chairman Rod Sims stated the ACCC believes the corporate alliance will promote competition, particularly with Qantas and its affiliates which "is likely to result in public benefits such as enhanced products and services available to corporate customers, increased choice of integrated service providers and potentially lower prices due to closer competition." Virgin Australia and Skywest welcomed the ACCC's approval with Virgin Australia Group executive of alliances, network and yield Merren McArthur stating, the alliance "will provide a range of benefits for resources and mining companies, including more competitive pricing, enhanced flight connections and a higher quality overall travel experience". The ACCC granted the airlines interim authorisation on 25-Jan-2012 to allow them to set up the alliance and begin negotiating and tendering for corporate contracts. [more - original PR - ACCC] [more - original PR - Virgin Australia]

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