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ACCC considers Virgin Australia’s international carrier codeshare deals

The ACCC has submitted a draft determination, proposing to authorise Virgin Australia to enter into codeshare pricing arrangements with its international airline partners for five years.

The ACCC has submitted a draft determination, proposing to authorise Virgin Australia to enter into codeshare pricing arrangements with its international airline partners for five years.

Under the arrangements, Virgin Australia’s international airline partners will set long-haul flight fares that the carrier can market and resell to its customers.

The ACCC granted interim authorisation to allow the carrier to enter into a proposed codeshare pricing arrangement with United Airlines, Qatar Airways and Singapore Airlines while it considers the application.

Virgin Australia and United Airlines celebrate the codeshare partnership announced in May 2022.

Virgin Australia has also indicated an interest in similar arrangements with All Nippon Airways, Air Canada and Hawaiian Airlines.

With VA currently unable to provide long-haul international services, the arrangements will allow the airline to offer codeshare flights to the US, Europe, other parts of Asia, the Middle East and Africa with partner airlines.

The ACCC has invited submissions on the draft determination by 29 July 2022 with Deputy Chair Mick Keogh noting their initial assessment is that the arrangements are likely to result in more choice and greater convenience for consumers looking to book international trips that include connecting flights operated by Virgin Australia.

The application is under consideration with a final determination due in August 2022.

The Virgin Australia network currently operates domestic flights and short-haul international services including Bali, Fiji and New Zealand.

For more info, visit virginaustralia.com