On 9 July 2009 and 24 July 2009 the Virgin Blue Group and Delta lodged applications for authorisation to make and give effect to the Coordination Agreement, the Cooperation Agreement and the Joint Venture Agreement (together the Virgin Blue / Delta Joint Venture).
Through the Virgin Blue / Delta Joint Venture, the applicants are seeking to establish a commercial relationship in order to provide customers with a broad and coordinated Trans-Pacific air passenger network (Trans-Pacific routes being those between Australia and mainland United States).
The Virgin Blue / Delta Joint Venture contemplates coordination and agreement between the applicants on Trans-Pacific routes in relation to:
- schedules, capacity and routes flown
- passenger sales and marketing activities
- pricing and revenue management
- enhancement of frequent flyer and lounge program offerings
- purchasing and procurement.
It also contemplates the pooling of revenue under arrangements founded on the principle of metal neutrality. This means the applicants will adopt revenue allocation arrangements that make it irrelevant, from the perspective of either applicant, which applicant's aircraft a passenger travels on.
On 10 December 2009 the ACCC issued a final determination granting authorisation for a period of five and a half years.
A copy of the ACCC's determination is available by following the links below.
