VA and VS permitted to cooperate by ACCC.
The Australian Competition and Consumer Commission has just announced the granting of interim authorisation for a cooperation agreement between Virgin Australia and Virgin Atlantic.
The deal permits the airlines to coordinate on a wide range of matters such as jointly managing prices, inventory and marketing strategies, on flights between Australia and the United Kingdom/Ireland, via Hong Kong, Los Angeles and any other future mutual connecting points.
ACCC Commissioner, Sarah Court, said the carriers to not currently operate competing flights on any of the relevant routes.
“We do not think this enhanced cooperation is likely to lessen competition on the routes between Australia and the British Isles,” she said.
Interim authorisation remains in effect while the ACCC considers the application for authorisation in further detail, with a draft determination expected by September this year.
More information in tomorrow’s issue of Travel Daily.