The Australian Competition and Consumer Commission (ACCC) has rejected Virgin Australia Airlines and Alliance Aviation Services' application for re-authorization of their charter alliance agreement. The airlines had requested to coordinate and tender for services for corporate customers, particularly those involving fly-in fly-out employees. The ACCC stated that it had not been provided with sufficient evidence of public benefit to counteract the likely harm from the proposed coordination.
The regulatory body was also concerned that the continued alliance would result in a reduction in bidders for tender processes for charter services, leaving only two large providers of these services, thereby reducing competition and incentives to invest and innovate. The ACCC acknowledged that the charter alliance would provide operational flexibility and cost savings, but it decided that the public detriments outweighed the public benefits.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.