Market Herald logo

Subscribe

Be the first with the news that moves the market
  • ACCC provides interim authorisation to Virgin Australia (VAH) and United Airlines to codeshare prices
  • The approval will allow both companies to put their code on passenger flights operated by the other
  • Virgin Australia will be able to sell services offered from United Airlines, which includes either a standalone itinerary or one with multiple flight segments
  • The decision was made on the basis of the two companies not operating on any of the same routes and other competitors with matching flight paths

The ACCC has provided interim authorisation to Virgin Australia (VAH) and United Airlines to codeshare prices.

The approval will allow both companies to put their code on passenger flights operated by the other.

Virgin Australia will be able to sell services offered from United Airlines, which includes either a standalone itinerary or one with multiple flight segments.

The decision was made on the basis of the two companies not operating on any of the same routes and other competitors with matching flight paths.

ACCC Commissioner Stephen Ridgeway does not believe it will impact competition within the industry.

“The ACCC’s preliminary view is that this proposed codeshare arrangement with United Airlines is likely to result in a public benefit as it will help Virgin Australia re-establish its international network,” he said.

“Currently, it appears that Virgin Australia is unlikely to be able to operate its own long-haul international services in the short term.”

The ACCC will now seek feedback for authorisation of other Virgin Australia applications, which includes codeshare pricing arrangements with other partner carriers.

More From The Market Herald
Countplus (ASX:CUP) - Incoming CEO, Hugh Humphrey

" Hugh Humphrey appointed CEO of Countplus (ASX:CUP)

Investment services company CountPlus (ASX:CUP) has appointed Hugh Humphrey as the company's CEO, effective July 1.

" ASX employee tests positive for Covid-19

The ASX says an employee has contracted Covid-19.

" ASIC launches official investigation into ASX market outage

The ASX has confirmed today it is officially under investigation from the Australian Securities and Investments…

" ASX sheds more light on last week’s market tech failure

The Australian Securities Exchange has shed some more light on the nature of last week's market…