ACCC proposes to authorise corporate alliance between Virgin Australia and Skywest Airlines.
The Australian Competition and Consumer Commission has just issued a draft decision which proposes to grant authorisation to the Corporate Alliance between Virgin Australia and Skywest Airlines.
The carriers want to jointly promote integrated charter and scheduled services to corporate customers “in competition with Qantas and its affiliates”.
ACCC chairman Rod Sims said the proposed authorisation “will result in public benefits such as enhanced products and services for corporate customers, increased choice of integrated service providers and potentially lower prices due to closer competition”.
The Alliance will allow the airlines to offer bundled packages to clients wanting an integrated suite of charter, domestic and international services, such as mining companies with large fly-in-fly-out workforces.
Sims said that the carriers operate mostly complementary networks, with today’s draft authorisation following the interim authorisation (TD 25 Jan) which allowed the airlines to begin marketing the Alliance.
More information in today’s Travel Daily.