eFlyer Asia - Intelligence

Delta, Virgin Blue Plan Approved In Australia

Virgin Blue and Delta Air Lines got the go-ahead from Australian regulators to enter into a joint venture on trans-Pacific flights between Australia and the United States.

The Australian Competition and Consumer Commission’s preliminary approval allows the airlines to coordinate on issues including pricing, revenue management, schedules, capacity and routes.

“The ACCC considers that the joint venture is likely to assist Virgin and Delta to compete more effectively against the incumbents on the routes — Qantas and United Airlines,” said Graeme Samuel, chairman, ACCC.

Virgin Blue operates V Australia, which launched and started flying to the U.S. in February this year. Delta commenced its first service to Australia in July.

In a statement welcoming the ACCC’s decision the two airlines said their proposed joint venture will allow them to provide enhanced services, through collaboration on route and product planning, codesharing on their respective networks and the extension of frequent flyer programme benefits and lounge access to customers of both airlines. The ACCC also proposed that joint venture should provide the two airlines with access to lower fares on each other’s domestic network.

Meanwhile, Virgin and Delta are also in the process of seeking antitrust immunity from the U.S. Department of Transportation. The implementation of the joint venture is subject to antitrust immunity being granted by the U.S. Department of Transportation.

 

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