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The Australian commission said that it is aware that consumers who book one of the new services during the period of interim authorisation are likely to be affected if final authorisation for Etihad-Virgin is denied (FILE)
Abu Dhabi-based Etihad airline has gained interim approval for an alliance with Virgin Blue from Australia’s anti-trust commission on Thursday.
Under the alliance, Virgin Blue and Etihad have agreed to cooperate on joint pricing and scheduling of services across their networks. The alliance will also add capacity between Australia and Abu Dhabi.
The Australian Competition and Consumer Commission (ACCC) Chairman Graeme Samuel said: "(We) have taken into account the fact that Virgin Blue and Etihad currently do not operate any competing services, as well as the lead time required to market and sell tickets before the commencement of long-haul services."
Australia’s Qantas Airways objected to interim approval and said that it will impact prices on Europe-Abu Dhabi routes.
ACCC said that interim authorisation will allow the applicants to commence preparations for the alliance and to promote it to travellers ahead of the ACCC's final decision. The anti-trust body said that it may review decision on interim authorization at any time.
Virgin Blue CEO John Borghetti said the carriers would begin sales from October 1 and will operate 27 flights a week between Australia and Abu Dhabi.
In a statement to Emirates 24/7 earlier this week, Etihad said: “In Australia, another important long haul market for Etihad, the airline now operates 21 flights per week, to Sydney, Melbourne and Brisbane, a significant increase from its initial three flights to Sydney in 2007. In August, Etihad also signed a partnership agreement with Virgin Blue, which will see the two airlines move towards a total of 27 services per week between Abu Dhabi and Australia.”
The ACCC also said that it is aware that consumers who book one of the new services during the period of interim authorisation are likely to be affected if final authorisation is denied. However, Virgin Blue and Etihad have put in place route protection plans to manage the travel arrangements of any affected passengers.
The ACCC recently denied an alliance between Virgin Blue and Air New Zealand in respect of flights between Australia and New Zealand. Unlike that matter, the ACCC noted that Virgin Blue currently does not operate any competing services with Etihad.
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