Fare choices across the Tasman set for significant boost.
Virgin Australia has been granted full authority by the ACCC to sell and market trans-Tasman flights operated by Air New Zealand.
Following a draft determination and conditional approval issued last month, the full authority from the competition watchdog will significantly open a wider range of more competitive airfares to and from New Zealand.
The ACCC said its full authority has been granted on the condition Air New Zealand stipulates the fares that Virgin Australia can promote.
The codeshare rights will not apply to routes where Virgin Australia currently competes against Air New Zealand, such as its regular flights to Queenstown from Brisbane, Sydney and Melbourne.
Members of Velocity Frequent Flyer will now be able to earn and redeem points on flights operated by Air New Zealand if booked through Virgin Australia.
“We consider that these conditions significantly limit the potential for the code sharing arrangements to lead to anti-competitive behaviour,” said ACCC Deputy Chairman, Mick Keogh.
More details in today’s issue of Travel Daily.