ACCC authorises Virgin Australia and Alliance Airlines cooperation

    Australian Competition and Consumer Commission (ACCC) granted (08-Apr-2021) authorisation to enable Virgin Australia and Alliance Airlines to coordinate their operations in relation to the provision of services on 41 regional routes and two short haul international routes. Virgin Australia and Alliance are proposing to coordinate their operations to enable them to better manage capacity and respond to changes in demand over the next two years as the aviation industry recovers from the COVID-19 pandemic. The ACCC considers that these arrangements are likely to result in a public benefit by promoting competition on certain regional and short haul international routes. The ACCC stated the proposed conduct is likely to result in a more efficient and sustainable operation of services by Virgin Australia and Alliance, support regional air services and regional communities, as well as facilitate increased competition through Virgin Australia being a more effective and vigorous competitor in operating certain regional and short haul international routes. ACCC stated other airlines, primarily Qantas and Jetstar, are likely to provide a strong competitive constraint on Virgin Australia and Alliance on many of these routes. Authorisation is granted until 31-Mar-2023.

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