Virgin's trans-Tasman codeshare with Air New Zealand approved

The ACCC has approved Virgin Australia’s unilateral codesharing agreement with Air New Zealand. The deal, which the ACCC signalled last month that it would allow, will let Virgin place its VA code on trans-Tasman Air New Zealand flights originating and sold in Australia, provided Air New Zealand sets the fares. The consumer watchdog says it believes this will offer passengers more choice. “We are satisfied that the sharing of resources by these airlines will provide consumers with more ticketing and price options on trans-Tasman routes,” said ACCC deputy chair Mick Keogh. “Virgin Australia and Air New Zealand will also be able to jointly offer discounts and a range of marketing options to businesses, and eligible Virgin Australia customers will have access to Velocity Frequent Flyer program benefits and international lounge access.” The codesharing agreement does not apply on routes where Virgin is already competing with Air New Zealand, or on any routes where it decides to compete in future.<br/>