ACCC proposes to grant authorisation for Virgin Blue/Etihad alliance

Australian Competition and Consumer Commission (ACCC) issued (16-Dec-2010) a draft determination proposing to grant authorisation for an alliance between Virgin Blue and Etihad. Under the alliance, Virgin Blue and Etihad have agreed to cooperate on joint pricing and scheduling of services across their networks. The alliance will also add capacity between Australia and Abu Dhabi. The ACCC is of the view that the alliance is unlikely to result in any public detriment given that Virgin Blue and Etihad currently do not directly compete on any routes. The ACCC will now seek further submissions from the applicants and interested parties in relation to this draft determination prior to making a final decision. [more] [more]

ACCC: "The ACCC considers that the Alliance is likely to promote competition and result in benefits for Australian consumers through new international services and increased online connections," Graeme Samuel, Chairman. Source: Australian Competition and Consumer Commission, 16-Dec-2010.