VIRGIN TAKES OFF WITH ETIHAD

Written on the 5 October 2010

VIRGIN TAKES OFF WITH ETIHAD

AFTER knocking back Virgin Blue Limited’s (VBA) ambitions in New Zealand, the Australian Competition and Consumer Commission (ACCC) has today given the Brisbane-based airline something to cheer about.

The ACCC granted interim authorisation to Virgin today for its proposed alliance with Etihad, which means flights to Abu Dhabi will take off in October.

ACCC chairman Graeme Samuel says the decision was made because there is no existing competition between the two airlines, while the alliance will boost capacity on the long-haul route.

“In granting interim authorisation the ACCC has taken into account the fact that Virgin Blue and Etihad currently do not operate any competing services, as well as the lead time required to market and sell tickets before the commencement of long-haul services,” he says.

Virgin CEO John Borghetti told the ASX the company will run flights to Abu Dhabi from Melbourne, Sydney and Brisbane, starting October 1.

“The Virgin Blue Group of airlines will now be able to an alternative and competitive network to the Middle East, Europe, United Kingdom and beyond,” he said in a statement.

“This is an important milestone as we create a global international network, greater competition on the international landscape and benefit our guests with great value fares, better scheduling and more choice.”

Meanwhile Samuel says Virgin should not be surprised by the decision by the ACCC to deny the NZ link.

“In a sense they should not have been surprised because the trans-Tasman market has been examined very carefully over a long period of time, particularly going back to 2003, 2004 when we looked at the issue of QANTAS,” he says.

“What they need to do is read carefully the detailed reasons that we have given for not approving the Air New Zealand link-up an address those issues.”


Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter