Close sidebar

ACCC to deny Virgin-Air NZ tie up

written by australianaviation.com.au | September 10, 2010
photo - Seth Jaworski

The Australian Competition and Consumer Commission (ACCC) has issued a draft determination which would block Virgin Blue’s proposed alliance with Air New Zealand on trans-Tasman services.

“The ACCC believes that Virgin Blue is a significant competitor to Air New Zealand and there are a number of trans-Tasman routes where the alliance raises competition concerns,” ACCC chairman Graeme Samuel said in a media statement. “These routes account for around one quarter of passenger traffic in the trans-Tasman market. This means that more than one million passengers per year may be adversely affected by the removal of competition between Virgin Blue and Air New Zealand.”

The ACCC has now invited interested parties to make applications to support the claims of increased public benefit brought by Virgin Blue and Air New Zealand, while the two airlines have indicated that they intend to respond as part of that process.

Advertisement
Advertisement

The draft determination comes only one day after Virgin appeared to suffer another defeat with the US Department of Transportation issuing a notice that it intends not to grant antitrust immunity for its proposed wide-ranging joint venture agreement with Delta Air Lines. Should both applications end up being denied, it would prove a major challenge for Virgin CEO John Borghetti, who appears to be building up a strategy to work with strong alliance partners on its international services.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

ACCC to deny Virgin-Air NZ tie up

written by australianaviation.com.au | September 10, 2010
photo - Seth Jaworski

The Australian Competition and Consumer Commission (ACCC) has issued a draft determination which would block Virgin Blue’s proposed alliance with Air New Zealand on trans-Tasman services.

“The ACCC believes that Virgin Blue is a significant competitor to Air New Zealand and there are a number of trans-Tasman routes where the alliance raises competition concerns,” ACCC chairman Graeme Samuel said in a media statement. “These routes account for around one quarter of passenger traffic in the trans-Tasman market. This means that more than one million passengers per year may be adversely affected by the removal of competition between Virgin Blue and Air New Zealand.”

The ACCC has now invited interested parties to make applications to support the claims of increased public benefit brought by Virgin Blue and Air New Zealand, while the two airlines have indicated that they intend to respond as part of that process.

Advertisement
Advertisement

The draft determination comes only one day after Virgin appeared to suffer another defeat with the US Department of Transportation issuing a notice that it intends not to grant antitrust immunity for its proposed wide-ranging joint venture agreement with Delta Air Lines. Should both applications end up being denied, it would prove a major challenge for Virgin CEO John Borghetti, who appears to be building up a strategy to work with strong alliance partners on its international services.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

ACCC to deny Virgin-Air NZ tie up

written by australianaviation.com.au | September 10, 2010
photo - Seth Jaworski

The Australian Competition and Consumer Commission (ACCC) has issued a draft determination which would block Virgin Blue’s proposed alliance with Air New Zealand on trans-Tasman services.

“The ACCC believes that Virgin Blue is a significant competitor to Air New Zealand and there are a number of trans-Tasman routes where the alliance raises competition concerns,” ACCC chairman Graeme Samuel said in a media statement. “These routes account for around one quarter of passenger traffic in the trans-Tasman market. This means that more than one million passengers per year may be adversely affected by the removal of competition between Virgin Blue and Air New Zealand.”

The ACCC has now invited interested parties to make applications to support the claims of increased public benefit brought by Virgin Blue and Air New Zealand, while the two airlines have indicated that they intend to respond as part of that process.

Advertisement
Advertisement

The draft determination comes only one day after Virgin appeared to suffer another defeat with the US Department of Transportation issuing a notice that it intends not to grant antitrust immunity for its proposed wide-ranging joint venture agreement with Delta Air Lines. Should both applications end up being denied, it would prove a major challenge for Virgin CEO John Borghetti, who appears to be building up a strategy to work with strong alliance partners on its international services.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

ACCC to deny Virgin-Air NZ tie up

written by australianaviation.com.au | September 10, 2010
photo - Seth Jaworski

The Australian Competition and Consumer Commission (ACCC) has issued a draft determination which would block Virgin Blue’s proposed alliance with Air New Zealand on trans-Tasman services.

“The ACCC believes that Virgin Blue is a significant competitor to Air New Zealand and there are a number of trans-Tasman routes where the alliance raises competition concerns,” ACCC chairman Graeme Samuel said in a media statement. “These routes account for around one quarter of passenger traffic in the trans-Tasman market. This means that more than one million passengers per year may be adversely affected by the removal of competition between Virgin Blue and Air New Zealand.”

The ACCC has now invited interested parties to make applications to support the claims of increased public benefit brought by Virgin Blue and Air New Zealand, while the two airlines have indicated that they intend to respond as part of that process.

Advertisement
Advertisement

The draft determination comes only one day after Virgin appeared to suffer another defeat with the US Department of Transportation issuing a notice that it intends not to grant antitrust immunity for its proposed wide-ranging joint venture agreement with Delta Air Lines. Should both applications end up being denied, it would prove a major challenge for Virgin CEO John Borghetti, who appears to be building up a strategy to work with strong alliance partners on its international services.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

Each day, our subscribers are more informed with the right information.

SIGN UP to the Australian Aviation magazine for high-quality news and features for just $99.95 per year