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Thursday, January 31, 2013

ACCC approve Virgin's acquisition of Skywest

The Australian Competition and Consumer Commission (ACCC) have given Virgin Australia approval for their take over of regional operator Skywest as mentioned on this blog back in October.
The Australian Competition and Consumer Commission (ACCC) today cleared the deal, saying it was unlikely to lead to a substantial lessening of competition.
"The message that we received from the market was broadly supportive of the proposed acquisition," ACCC chairman Rod Sims said.

The move will see Skywest rebranded as Virgin Australia and take on Qantas' own regional operation, QantasLink, flying secondary routes including the resources sector and charter services.

Skywest are based in Perth with the bulk of their offering in the major mining regions of Western Australia, they also have a link to South Australia, while also operating the Virgin Australia ATR fleet on the east coast.

At the same time Virgin announced they wanted to take a 60% stake in Tiger, the ACCC will report back on this next week (Feb 7th)

This can only be good for the airline as it will expose them to the lucrative mining contracts that Skywest hold in Western Australia with stable financial backing also giving them an edge to challenge for more contracts through out all the resource rich areas of Australia

Read more on the ACCC approval from either Australian Business Traveller HERE or The Daily Telegraph HERE

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