ACCC grants interim approval to Virgin Blue-Etihad alliance
The Australian Competition and Consumer Commission has granted interim authorisation in respect of a proposed alliance between airlines 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.
Interim authorisation will allow the applicants to commence preparations for the alliance and to promote it to travellers ahead of the ACCC's final decision.
"In granting interim authorisation the ACCC has taken into account the fact that Virgin Blue and Etihad currently do not operate any competing services, as well as the lead time required to market and sell tickets before the commencement of long-haul services," ACCC chairman Graeme Samuel said.
The ACCC is aware that consumers who book one of the new services during the period of interim authorisation are likely to be affected if final authorisation is denied. However, Virgin Blue and Etihad have put in place route protection plans to manage the travel arrangements of any affected passengers.
The ACCC has sought submissions on the substantive application from interested parties. Those submissions closed on 22 September 2010.
The ACCC recently issued a draft determination proposing to deny authorisation for an alliance between Virgin Blue and Air New Zealand in respect of flights between Australia and New Zealand. Unlike that matter, the ACCC notes that Virgin Blue currently does not operate any competing services with Etihad.
Further information about the application is available on the ACCC's public register at www.accc.gov.au/AuthorisationsRegister.
The ACCC may review its decision on interim authorisation at any time. The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.
Refer to full documentation in attachments box, located at the top left, below the headline.
Download Files
There are files associated with this article. You can download them below.
You need to be logged in to download files.