ACCC entitles Virgin Australia (ASX: VAH) and United Airlines to use code-sharing prices – The Market Herald

• The ACCC grants an intermediate permit to Virgin Australia (VAH) and United Airlines for code-gray prices
• Approval will allow both companies to place their codes on passenger flights operated by another
• Virgin Australia will be able to sell services offered by United Airlines, which includes either a separate route or a route with several flight segments
• The decision was made on the grounds that the two companies do not operate on the same routes and other competitors with matching flight routes

The ACCC has granted an intermediate permit to Virgin Australia (VAH) and United Airlines for code-gray prices.

The approval will allow both companies to place their codes on passenger flights operated by the latter.

Virgin Australia will be able to sell services offered by United Airlines, which includes either a separate route or a route with multiple flight segments.

The decision was made on the grounds that the two companies do not operate on either of the same routes and the other competitors with matching flight routes.

ACCC Commissioner Stephen Ridgeway does not believe this will affect competition in the industry.

“The ACCC’s preliminary view is that this proposed code-sharing agreement with United Airlines is likely to be in the public interest as it helps Virgin Australia rebuild its international network,” he said.

“It now seems that Virgin Australia is unlikely to be able to carry out its own international services over long distances in the short term.”

The ACCC will now seek feedback to authorize other Virgin Australia applications, which includes pricing agreements with other partner operators.