ACCC denies Virgin Australia- Alliance Aviation charter agreement

The Australian Competition and Consumer Commission (ACCC) has denied Virgin Australia Airlines and Alliance Aviation Services’ application for re-authorisation of their alliance agreement. The previous agreement allowed the two Australian aviation operators to coordinate and jointly tender for and supply services to corporate customers, mainly for fly-in fly-out employees. The two airlines sought ACCC authorization for the extension of their charter alliance agreement because some parts of it raise concerns under the cartel and other restrictive practices provisions of the Competition and Consumer Act. “This application involves the second and third largest providers of FIFO services jointly tendering and coordinating services,”