Virgin Australia plane
A Corporate Alliance between Virgin Australia and Skywest would increase competition for Qantas and its affiliates, according to the Australian Competition and Consumer Commission (ACCC).
In a draft approval submitted, the ACCCs chairman Rob Sims explained the alliance would offer an extensive integrated air service package to corporate travellers that would compete directly with the Australian flag carriers offerings.
The proposed authorisation will result in public benefits such as enhanced products and services for corporate customers, increased choice of integrated service providers and potentially lower prices due to closer competition, Mr Sims said.
The ACCC noted that the two airlines currently operate a mostly complimentary network and combined they would offer travellers bundled air transport services.
While only handing down a draft approval, the Commission said it may grant full approval for the alliance once it is satisfied that the public benefit outweighs any public detriment.
The ACCC said it is now accepting submissions from applications in relation to the draft determination.
Source = e-Travel Blackboard: N.J