December 11, 2009The
Australian Competition and Consumer Commission (ACCC) has granted authorisation to Virgin Blue and Delta Air Lines to enter into a joint venture on their flights between Australia and the United States (the trans-Pacific routes).
Under the collaboration, the airlines will take a coordinated approach to a range of issues, including pricing, revenue management, schedules, capacity and routes flown.
ACCC Chairman Graeme Samuel says the initiative would allow Virgin and Delta to compete more effectively against Qantas and United Airlines.
"The Joint Venture is likely to give rise to route connectivity benefits for consumers, enhanced route coverage and schedules, and more sustainable competition on the routes," Samuel says.
If all goes to plan, applicants with also be able to access to lower fares on each other’s domestic networks.
Delta, for example, will have an incentive to facilitate Joint Venture sales by reducing the cost of any US domestic leg of a V Australia ticket.
According to the ACCC, Virgin and Delta are currently in the process of seeking antitrust immunity from the US Department of Transportation.
The implementation of the Joint Venture is subject to antitrust immunity being granted by the US Department of Transportation.