Virgin Australia, Alliance partnership gets regulatory green light

Virgin Australia has been given interim regulatory approval to cooperate on Alliance Airlines on more than 40 regional and short-haul routes, in a move that has drawn the ire of at least one regional competitor. The Australian Competition and Consumer Commission (ACCC) says it took the view that the intended partnership would “likely result in a public benefit”, while Virgin Australia, which recently exited voluntary administration under new ownership, reestablishes a pared-back domestic network. In late October, Virgin Australia applied to the ACCC to cooperate with Alliance Airlines, arguing that it was difficult to serve a number of regional points with a reduced fleet post-administration. It added that ceding market share in the regional sector to rival Qantas will result in higher fares, a reduction in flight options, as well as less favourable terms for customers. Under the cooperation, Virgin Australia and Alliance will be allowed to share information, as well as agree on service capacity and schedules. In the longer term, both carriers could be allowed to share revenue on existing and new routes. A large number of the routes under the partnership originate from Brisbane, including two international cities — Hoinara in the Solomon Islands, as well as Papua New Guinea capital Port Moresby. <br/>