November 3, 2009A joint venture between Virgin Blue and Delta Air Lines on trans-Pacific flights may soon be made possible following the release of a draft determination issued by the
Australian Competition and Consumer Commission (ACCC).
Under the partnership, the airlines would take a coordinated approach to a range of issues including pricing, revenue management, schedules, capacity and routes flown between Australia and the United States.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the
Trade Practices Act 1974.
Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
ACCC Chairman Graeme Samuel says the joint venture will potentially assist Virgin Blue and Delta to compete more effectively against Qantas and United Airlines.
"The entry of Virgin Blue and Delta on the trans-Pacific routes has created strong competition on price and service in the market for passenger transport. The ACCC expects that this would continue to be the case under the new arrangements to the benefit of consumers," Samuel says.
As these benefits depend on the conduct of associated parties, the ACCC is proposing to grant authorisation for a limited period of three years.
The ACCC's draft determination will be available from the ACCC website.
It is seeking submissions from interested parties by November 17.