Virgin Australia takeover of Skywest OK by ACCC.
The Australian Competition and Consumer Commission has just announced that it will not oppose the proposed acquisition of Skywest Airlines by Virgin Australia.
The move, which was announced in late Oct, proposes the 100% takeover of the Perth-based carrier, which also operates the Virgin Australia regional turboprop network across the country.
ACCC chairman Rod Sims said the commission believes that the deal “is unlikely to lead to a substantial lessening of competition in any relevant market, primarily because the direct overlap between Virgin Australia and Skywest’s services is limited to a single route between Perth and Broome”.
He said the ACCC had consulted widely with a range of interested parties, including other regional and charter airlines, airports, potential charter customers and industry bodies.
“The message that we received from the market was broadly supportive of the proposed acquisition,” he said.
The ACCC is continuing to assess the proposed acquisition of a 60% stake in Tiger Airways Australia by Virgin, with the findings from this review set to be released on 07 Feb.
More information in today’s Travel Daily.