Watchdog 'okay with' Virgin Australia-Air NZ deal

BTN News
Friday, 03 May 2024

The Australian competition and Consumer Commission (ACCC) says it will not block a proposal for Virgin Australia to sell code-share tickets on Air New Zealand’s trans-Tasman flights.


The competition watchdog is seeking submissions on its draft determination, which would allow Virgin to sell an unlimited number of tickets under its code on Air New Zealand flights sold and originating in Australia, up to available capacity - if Air New Zealand sets the fares.

“This proposed code sharing arrangement has the potential to increase ticketing choices for Australians travelling to New Zealand, and provide Velocity frequent flyer program benefits and international lounge access for eligible Virgin Australia customers,” said ACCC deputy chair Mick Keogh.

Virgin Australia currently operates its own flights to Queenstown from Sydney, Melbourne and Brisbane, which are not affected by the proposed arrangements; the code share will also not apply to any future trans-Tasman services Virgin launches in competition with Air New Zealand.

“We consider it unlikely that any significant increase in passenger demand for trans-Tasman services due to this code sharing arrangement would raise airfares,” said Keogh.

“On current information, we also consider that the code sharing arrangements do not materially reduce Virgin Australia’s incentive to operate its own services on other trans-Tasman routes.”

Virgin and Air New Zealand will be permitted to jointly provide marketing offers, including discounts, for VA-coded trans-Tasman Air New Zealand services, and can immediately start planning on how they will sell and market these fares.

“The interim authorisation excludes the direct or indirect marketing, provision of offers and sale of fares to all customers before the ACCC makes its final determination,” said Keogh.

Watchdog 'okay with' Virgin Australia-Air NZ deal

BTN News
Friday, 03 May 2024

The Australian competition and Consumer Commission (ACCC) says it will not block a proposal for Virgin Australia to sell code-share tickets on Air New Zealand’s trans-Tasman flights.


The competition watchdog is seeking submissions on its draft determination, which would allow Virgin to sell an unlimited number of tickets under its code on Air New Zealand flights sold and originating in Australia, up to available capacity - if Air New Zealand sets the fares.

“This proposed code sharing arrangement has the potential to increase ticketing choices for Australians travelling to New Zealand, and provide Velocity frequent flyer program benefits and international lounge access for eligible Virgin Australia customers,” said ACCC deputy chair Mick Keogh.

Virgin Australia currently operates its own flights to Queenstown from Sydney, Melbourne and Brisbane, which are not affected by the proposed arrangements; the code share will also not apply to any future trans-Tasman services Virgin launches in competition with Air New Zealand.

“We consider it unlikely that any significant increase in passenger demand for trans-Tasman services due to this code sharing arrangement would raise airfares,” said Keogh.

“On current information, we also consider that the code sharing arrangements do not materially reduce Virgin Australia’s incentive to operate its own services on other trans-Tasman routes.”

Virgin and Air New Zealand will be permitted to jointly provide marketing offers, including discounts, for VA-coded trans-Tasman Air New Zealand services, and can immediately start planning on how they will sell and market these fares.

“The interim authorisation excludes the direct or indirect marketing, provision of offers and sale of fares to all customers before the ACCC makes its final determination,” said Keogh.