SYDNEY – A regulator authorized loss-making Virgin Australia airlines on Friday to work more closely with the Virgin Atlantic on matters like managing prices, inventory, and joint marketing strategies.
The arrangements, according to a determination by the Australian Competition and Consumer Commission, would be on flights between Australia and the United Kingdom and Ireland via Hong Kong and Los Angeles.
The partnership will be valid from Nov. 30, 2019, until Nov. 30, 2024, the ACCC said in a statement.
Virgin Australia and Virgin Atlantic are separate businesses whose services do not currently overlap on any route. But the businesses have a codeshare arrangement that allows each to market flights on planes flown by the other.
“The arrangements which have been authorized will not lessen competition on any route, and are likely to provide public benefits, including through improved scheduling and enhanced loyalty program benefits,” ACCC Commissioner Stephen Ridgeway said.
The ACCC said the services of the two entities do not overlap on any routes and assured that this cooperation will benefit the clients as the matters covered under the new arrangement “are not currently permitted in their existing arm’s length commercial codeshare and loyalty arrangements.”
Virgin Australia, the country’s second airline, recorded losses of AU$315 million ($217 million) in the last fiscal year, according to its annual report.