Virgin Australia to sell, market Air New Zealand trans-Tasman services
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The news: Virgin Australia will be able to sell and market Air New Zealand trans-Tasman flights, following a decision by the competition regulator to allow the airline operators' planned code-sharing arrangements for the flights.
The context: The goal of the arrangement is to increase passengers' fare options for flights between Australia and New Zealand.
Virgin Australia and Air New Zealand applied to the Australian Competition and Consumer Commission (ACCC) in November for a five-year authorisation of a code-sharing arrangement for trans-Tasman flights where Virgin does not operate.
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.
In a media release accompanying the ACCC decision, deputy chair Mick Keogh said the regulator was satisfied the arrangement would lead to more ticketing and pricing options for passengers.
What they said: “We consider that these conditions significantly limit the potential for the code sharing arrangements to lead to anti-competitive behaviour,” Keogh said.
The source: Australian Competition and Consumer Commission
