A five-year alliance between airlines Virgin Blue Holdings and Etihad Airways has been approved by the competition watchdog.
Under the alliance approved by the Australian Competition and Consumer Commission, the airlines will cooperate on joint pricing and service scheduling across their networks, but will not share revenue.
ACCC chairman Graeme Samuel said in a statement today that the alliance will help the growth of the airline industry.
‘‘The ACCC considers that the alliance is likely to promote competition and result in new international services, in particular between Australia and Abu Dhabi with onward connections to Europe,’’ Mr Samuel said.
The ACCC said it will probably not result in any anti-competitive detriments as the airlines do not currently compete on any routes.
The authorisation will give the airlines immunity from court action for conduct that may have otherwise raised concerns under the Competition and Consumer Act 2010.
The ACCC may grant this authorisation when it believes public benefit from the action is greater than public detriment.
Virgin last traded at 40 cents.
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