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Friday, December 17, 2010

ACCC say YES (finally)

Finally some good news for the Virgin group and Air New Zealand with the ACCC overturning their draft decision to grant conditional approval to the tie up of services across the tasman.

An alliance between Air New Zealand and Virgin Blue on flights between Australia and New Zealand has been conditionally approved by the Australian watchdog.
The approval by the Australian Competition and Consumer Commission reversed an earlier draft ruling which was opposed to the tie-up.
Wellington International Airport Limited who had opposed the venture seem to have come out as big winners from the conditional approval

Mr Samuel said the ACCC was still concerned that the alliance might affect competition on a number of routes between Australia and New Zealand, particularly routes involving Wellington. "However, the ACCC has imposed a number of conditions on authorisation which are designed to address these competition concerns."

Read more about the decision and conditions:
Stuff.co.nz Air NZ, Virgin Blue alliance approved
NZ Herald Air NZ, Virgin Blue alliance approved
The Australian Conditional ACCC nod means Virgin Blue, Air New Zealand must add seats, by Steve Creedy

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