Sharechat Logo

Air NZ Virgin alliance gets five-year extension, ACCC will review capacity in 2015

Tuesday 3rd September 2013

Text too small?

Air New Zealand and Virgin Australia's trans-Tasman alliance has been granted a five-year extension by the Australian antitrust regulator, provided they keep capacity on certain routes.

The Australian Competition and Consumer Commission signalled a three-year extension in a draft determination in July, and has decided to grant the five-year authorisation after another round of submissions, it said in a statement to the ASX. Without the tie-up, the regulator said Air NZ would be at a competitive disadvantage to the Qantas-Jetstar/Emirates alliance.

"The ACCC considers it appropriate to grant authorisation for five years, taking into account the airlines' additional submissions about the need for a five year term to allow for investment certainty and facilitate greater integration of the alliance partners, thereby releasing additional public benefits," it said.

The alliance is conditional on the airlines maintaining aggregate base capacity on the Christchurch-Melbourne, Christchurch-Brisbane, Wellington-Brisbane, Queenstown-Brisbane, Auckland-Gold Coast and Dunedin-Brisbane routes. The ACCC will review capacity in September 2015.

Shares in Air NZ were unchanged at $1.43 today.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports