Australia’s competition regulator has reversed course and cleared Virgin Australia/Virgin Australia Regional Airlines and Alliance Airlines to work together in the charter and FIFO market.
The two carriers’ charter alliance involves joint tendering for corporate FIFO contracts, as well as cooperating on aircraft maintenance, procurement of aircraft and parts, parts pooling, airport operations, airport handling, check-in, frequent flyer programs, lounge access, scheduling, pricing, sales and marketing and service policies.
Virgin and Alliance had argued the tie-up would benefit charter customers through operational efficiencies, the increased flexibility and optimisation of aircraft utilisation through combining their fleets, and the bringing together of VARA’s (Virgin Australia’s) national regular public transport network with Alliance Airlines’ national charter network.
The Australian Competition and Consumer Commission knocked back the alliance in a draft decision published in December 2016, citing concerns the tie-up would reduce the number of players in the market.
Full Content: Asia Cruise News
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