ACCC proposes authorisation for Virgin Australia, Air New Zealand codeshare agreement

The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to grant authorisation to Virgin Australia and Air New Zealand for proposed unilateral code sharing arrangements on trans-Tasman routes. ""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. Currently Virgin Australia operates its own services on routes between Queenstown and Melbourne, Sydney and Brisbane. The proposed arrangements do not apply to these routes nor to any routes where Virgin Australia commences operating its own services in competition with Air New Zealand. Keogh added: ""We consider it unlikely that any significant increase in passenger demand for trans-Tasman services due to this code sharing arrangement would raise airfares. ""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."" The ACCC has also granted interim authorisation to allow Virgin Australia and Air New Zealand to commence commercial planning for any marketing and selling of fares for VA coded trans-Tasman services.