Virgin Australia & Alliance Airlines

Summary

On 23 October 2020 Virgin Australia and Alliance Airlines (the Applicants) applied for authorisation to cooperate in relation to the provision of services on 41 regional routes and two short-haul international routes (Relevant Routes). Details of the routes are provided in the application which is available from the link below.

The Applicants submit that they are seeking authorisation in order to efficiently manage capacity and quickly respond to changes in demand due to the COVID-19 pandemic, including by:

  • Sharing information, including in relation to costs, willingness to operate, capacity, utilisation, anticipated demand and pricing about the Relevant Routes.
  • Agreeing capacity, flight schedules, and aircraft type, including whether a carrier will suspend or continue operations, which carrier will operate the Relevant Routes and under what commercial arrangements (e.g. wet lease or codeshare, or a revenue – sharing model).
  • Putting in place temporary commercial arrangements that are most suitable for the Relevant Route considering demand and risk profile in the exceptional current market conditions.
  • Potentially, entering risk and revenue sharing mechanisms and agreements as to price.

A full copy of the application for authorisation is available below.

The Applicants also requested interim authorisation to facilitate the immediate planning and coordination of services on the Relevant Routes prior to the ACCC’s final determination in relation to the substantive application for authorisation.

On 19 November 2020, the ACCC granted interim authorisation to allow the Applicants to commence cooperation on the Relevant Routes while the ACCC considers the merits of the substantive application for authorisation.

The next step in the process is for the ACCC to release a draft determination which will take account of any further submissions from the Applicants and interested parties, and will indicate the ACCC’s preliminary views on the merits of the application. An indicative timetable is set out below.

Timetable

23 October 2020

Lodgement of application and supporting submission.

27 October 2020

Public consultation process begins.

10 November 2020

Closing date for submissions on interim authorisation.

19 November

ACCC decision regarding interim authorisation.

20 November 2020

Closing date for submissions from interested parties.

December 2020

Applicant responds to issues raised in the public consultation process.

January/February 2021

Draft determination.

February/March 2021

Public consultation on draft determination including any conference if called.

March 2021

Final determination.

Applicant(s)

  • Virgin Australia International Airlines Pty Ltd
  • Virgin Australia Airlines (SE Asia) Pty Ltd
  • Virgin Australia Regional Airlines Pty Ltd
  • Alliance Aviation Services Limited
  • Virgin Australia Airlines Pty Ltd
  • Alliance Airlines Pty Limited

Authorisation number(s)

  • AA1000533-1

Applications

Document title Date

Decisions

Document title Date

Consultations

ACCC correspondence