Five year renewal of VA-EY pact proposed.
The Australian Competition and Consumer Commission has just issued a draft determination proposing to re-authorise Virgin Australia and Etihad Airways to continue their existing air transport services international alliance which operates between Australia and the Middle East, for a further five years.
The alliance sees the airlines cooperate on joint pricing and scheduling of services across their networks, but they do not share revenue.
“The ACCC considers this alliance would likely result in continued public benefits through promoting competition and enhancing the products and services offered to customers travelling between Australia and the Middle East and onward estinations throughout Europe,” said ACCC chairman Rod Sims.
The alliance was previously authorised by the ACCC on 3rd February 2011, with the ACCC now seeking submissions in relation to the draft determination, before making a final decision.
More details in today’s issue of Travel Daily.