ACCC approves Virgin, Delta joint venture
The Australian Competition and Consumer Commission (ACCC) has approved a joint venture between Virgin Blue and Delta Airlines for flights between Australia and the USA.
The airlines have been given permission to take a coordinated approach to a range of issues, including pricing, revenue management, schedules, capacity and routes flown.
“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 ACCC chairman Graeme Samuel.
He added that the partnership is likely to “give rise to route connectivity benefits for consumers, enhanced route coverage and schedules, and more sustainable competition on the routes”. Another benefit the ACCC saw was access to lower fares on each other’s domestic networks.
The joint venture must still attain antitrust immunity from the US Department of Transportation.
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