Following the ACCC’s draft determination to grant authorisation in May, the ACCC received a small number of submissions most of which supported the unilateral code sharing arrangements.

Virgin Australia can now place its airline code on trans-Tasman routes operated by Air New Zealand, which are sold in Australia and originate in Australia (VA coded trans-Tasman services).

The codeshare rights are provided on the condition that Air New Zealand specifies the fares which Virgin Australia may market and resupply those itineraries.

“We are satisfied that the sharing of resources by these airlines will provide consumers with more ticketing and price options on trans-Tasman routes,” ACCC deputy chair Mick Keogh said.

“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 code sharing arrangements do not apply to routes where Virgin Australia is currently, or decides to start, operating its own services in competition with Air New Zealand.

“We consider that these conditions significantly limit the potential for the code sharing arrangements to lead to anti-competitive behaviour,” Keogh said.

 

Source TravelWeekly