Alexa

Air NZ, Virgin Blue alliance opposed

Air NZ, Virgin Blue alliance opposed

Australia's corporate watchdog yesterday said it would likely reject a proposed alliance between Air New Zealand and Virgin Blue because it could disadvantage more than a million passengers a year.
The Australian Competition and Consumer Commission (ACCC) said it was proposing scuppering the deal, which the airlines said would provide cheaper trans-Tasman flights, on competition grounds.
"The ACCC believes that Virgin Blue is a significant competitor to Air New Zealand and there are a number of trans-Tasman routes where the alliance raises competition concerns," chairman Graeme Samuel said in a statement.
"These routes account for around one quarter of passenger traffic in the trans-Tasman market. This means that more than one million passengers per year may be adversely affected by the removal of competition between Virgin Blue and Air New Zealand."