Major coup for VA in bid to reboot int’l network.
The ACCC has granted interim authorisation for a proposed codeshare pricing arrangement between Virgin Australia and United Airlines.
Under the proposed pricing agreement, Virgin Australia and United Airlines would be able to put their code on passenger flight services, with the interim authorisation allowing United Airlines to set the fares at which Virgin Australia may sell its services, whether those services are sold as a standalone itinerary or as part of an itinerary that includes flight segments operated by Virgin Australia.
“The ACCC’s preliminary view is that this proposed codeshare arrangement with United Airlines is likely to result in a public benefit as it will help Virgin Australia re-establish its international network,” ACCC Commissioner Stephen Ridgeway said.
The preliminary permission arrives only days after Qantas raised concerns over the ACCC application by Virgin Australia to allow it to directly promote fares offered by a proposed network of international Partner Carriers, as well as a codehsare agreement with Qatar Airways.
More details in today’s issue of Travel Daily.