ACCC grants interim approval to Virgin and Skywest's corporate alliance

The Australian Competition and Consumer Commission has granted interim authorisation for a proposed corporate alliance between Virgin and Skywest.

Under the corporate alliance, the airlines propose to offer bundled air passenger transport services to corporate customers seeking an integrated suite of charter, domestic and international services.

"In granting interim authorisation, the ACCC has taken into account that this is unlikely to result in permanent changes to the relevant markets," ACCC chairman Rod Sims said.

"It will only affect corporate customers who have the option not to acquire the integrated air services package from Virgin and Skywest if they do not consider there is any benefit to them."

The ACCC considers it reasonable for the applicants to begin marketing the corporate alliance and have the opportunity to deliver the claimed public benefits.

Interim authorisation commences immediately, and will remain in place until the date that the ACCC's final determination comes into effect or is revoked.

The ACCC has sought submissions on the substantive application from interested parties. Those submissions close on 27 January 2012. The ACCC will now proceed to prepare its draft determination.

Further information, including the application and public submissions, can be found on the ACCC's public register at www.accc.gov.au/AuthorisationsRegister.