Merged: Virgin Blue/Air New Zealand Alliance Approved

[forgetabowdit]

Etihad Alliance - Tick
Air New Zealand Alliance - Tick
Delta Alliance - Watch this space...


ACCC approves Virgin, Air NZ tie up
December 16, 2010 - 8:59AM
AAP

The Australian Competition and Consumer Commission (ACCC) has conditionally approved a tie-up between Virgin Blue and Air New Zealand on their trans-Tasman routes.

The approval will apply for three years to the airlines coordinating a range of issues including pricing, revenue management, schedules, capacity and routes flown.

"The ACCC considers that the Alliance is likely to benefit passengers in a number of ways including more choice of routes and frequencies, and potentially lower fares as a result of cost savings and efficiency improvements," said ACCC chairman Graeme Samuel in a statement on Thursday.

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[piston broke again]

Geez your quick! Checked a few minutes ago for a result.
Good news anyway, star alliance may get their Australian connection without going via NZ.

Now for the naming court case with Virgin Australia on Friday and the albino aircraft may not be white for much longer...

[trashie]

THE Australian Competition and Consumer Commission (ACCC) has conditionally approved a tie-up between Virgin Blue and Air New Zealand on their trans-Tasman routes.

The approval will apply for three years to the airlines coordinating a range of issues including pricing, revenue management, schedules, capacity and routes flown.

"The ACCC considers that the Alliance is likely to benefit passengers in a number of ways including more choice of routes and frequencies, and potentially lower fares as a result of cost savings and efficiency improvements," said ACCC chairman Graeme Samuel in a statement.

"The ACCC is still concerned that the Alliance may affect competition on a number of routes between Australia and New Zealand, particularly routes involving Wellington," Mr Samuel said.

"However, the ACCC has imposed a number of conditions on authorisation which are designed to address these competition concerns."


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The conditions require the airlines to maintain and increase the number of seats flown on the routes where the ACCC has identified competition issues.

The conditions are intended to restrict the ability of the Alliance to raise fares on these routes by limiting its capacity, the ACCC said.

The ACCC's approval of the tie-up follows an earlier, draft determination which proposed to reject the alliance.

"Since then, the ACCC has received a substantial amount of information from the applicants and interested parties about the likely public benefits and detriments," the ACCC said in its statment.

"The ACCC is now satisfied that the identified public benefits, in combination with the conditions of authorisation, are likely to be sufficient to outweigh any public detriment arising from the alliance."

Air NZ and Virgin Blue had sought approval for five years.

"Given the significant role of the authorisation conditions in the balance of benefits and detriments, the ACCC considers it appropriate to review developments earlier," the ACCC said.

"As such, the ACCC has granted authorisation until December 31, 2013."

The ACCC said the approval provided immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.

Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

[320subria]

Great to hear. It will be interesting to see what degree of consolidation and expansion occurs with the 2 airlines accross the Tasman.

[By George]

Better lock up all your spares.

[VBPCGUY]

Better lock up all your spares

Its an alliance not part ownership.

[onedottoolow]

EXCELLENT!!!!!!!
Great news.
Now what's the missing piece ? TURBOPROPS.

[27/09]

Now what's the missing piece ? TURBOPROPS They shouldn't be missing for long.

[F111]

Word has it the boss told a crew on a recent flight they ( turboprops) are coming.

[nig&nog]

Since QF got Network it is only fair now that VB take over Maroomba or Skippers and there you have your turbo-prop organisation.

[stubby jumbo]

Game on .....AJ.

Il Duce has played his first hand-impeccably.

You need to put down an Ace / Queen (sic)......soon

Why can't I stop thinking that the QF Board blew it big time punting Il Duce over the Leprechaun

[teresa green]

I would not get to excited, those old enough would remember what happened to the last airline that got tied up with them, Ansett. A oneway street to obliviation, different circumstances of course, but the Kiwis always put the Kiwis first, something that should not be forgotten.

[coaldemon]

With no equity involved this is a completely different set of circumstances. Strategic alliances are the way to go in the new world as long as there is trust between the parties and trust seems to be something that Il Duce engenders with other CEO's. Should be interesting next year for Virgin.

[slice]

Kiwis always put the Kiwis first :\

Hey let me guess - Americans always put Americans first. And I think the French always put the French first. Possibly the Japanese always put Japanese first I think. Suspect that the British always put the British first. Even suspect Australians always favour Australians. Fark me is there a pattern here?:E

Bitter with a twist aye TG cuzzy-bro!

[TIMA9X]

remember what happened to the last airline that got tied up with them, Ansett.Oh yes, Déjà vu? nah, no money involved this time.

[halas]

[QUOTE]Strategic alliances are the way to go in the new world as long as there is trust between the parties/QUOTE]

That is what screwed Ansett. The "alliance" did not want AN competing on the others routes and was blocked.
Trust was lost after the take-over. That is history.

Emirates says "no" to any strategic alliance. Now why is that? (No one trusts them?)

halas

ps: What is the New World?

[coaldemon]

It would appear that some do not understand the difference between a 100 % Takeover and a Strategic alliance.

As for Emirates, Strategic Alliances do not fit into their business model.

[SilverSleuth]

Stubby Jumbo says:
Why can't I stop thinking that the QF Board blew it big time punting Il Duce over the Leprechaun

They probably don't regret it (yet) but they should. Every qantas employee who knew JB knows it.
I cringe every time I see the Leprechaun sitting at the media events rambling and stuttering his way through a sentence. Oprah, Travolta, A380 accident. For god sake get a CEO that at least can speak publicly and look the part.
I would suggest getting a media spokesman but as we know, look at the current chick. Speaks with 0 accuracy and knowledge and looks like she has just got out of bed and not brushed her hair.

Prediction !!!!!
In 12-18 months from now when the Virgin Australia business product is up and running and qantas are announcing a reduction in their business revenue, we will be here asking what has joyce done about it...

JB doesn't need the money, he has it already. This is a serious business man and he is very determined. It has been Virgin's smartest and most sensible board decision since it started.
The leprechaun over JB???? Huge mistake Qantas, Huge mistake...

[GAFA]

No, QLD,NSW, VIC, TAS and SA.

[brown_hornet]

Huge mistake Qantas, Huge mistake...

Couldn't agree more :ugh:

[The Green Goblin]

Quote:
Huge mistake Qantas, Huge mistake...
Couldn't agree more

Here too.

You can measure and see the difference in the workplace when the troops can see the business is being managed from the top and bringing everyone in the group forward.

The Qantas way just pisses everyone off.

[gobbledock]

JB doesn't need the money, he has it already. This is a serious business man and he is very determined. It has been Virgin's smartest and most sensible board decision since it started.

Totally agree. John is cashed up, no arguments there. As always with business, when there are changes some people win and some people lose. As talented as JB is, it is a rarity for the second in comand to take the prize role in aviation. It's not the absolute rule, but close to it. JB had been with QF for too long, which is not a crime in itself, but it meant that an outsider would come in, hence Alan's appointment and JB's career end was sealed.

So the thing here is that JB needs to finish on top, so DJ became the perfect fit for his career, which I imagine has a few years left in it. JB is a master at strategy, he will clean up the outfit, set out a clear future and DJ will be the beneficiary of this down the track. Not only is he astute but he genuinely enjoys the industry, he is a people person yet strong handed enough to show you the door if you are a complete w#nker. He has already made ground, disposed of some incompetents and is pretty competitive so I am sure there will be a few races between him and QF to come, dont worry about that. He will certainly be looking at ways to 'rub QF's face in it', but this bloke will do it in a dignified manner, gracefully and professionally. He won't just 'talk the talk' like some of his DJ predecessor's, he is a man of action and with this bloke money is not his only motivator so it is going to be an interesting battle.

On a final note those who may be concerned about DJ and ANZ getting cosy and ANZ attempting to pull some of the infamous tricks on DJ that they pulled on Ansett need not worry. This time around it is a different strategy and structure, different aviation environment, plus Rob Fyfe is a different type of player to what Toomey and the other twats who had the blinkers on. JB is no fool, don't think for a minute that while he was employed at QF that he was unaware of what his neighbours were up too !!

[VBPCGUY]

JB has given a new lease on life on the whole business, Ive been with VB 4.5 yrs and the excitement for what lies ahead for me is amazing, especially now its been confirmed VB staff will be ground handling the A330's:ok:onwards upwards and their is no horizon at the moment as the growth and potential is limitless right now, Asia, new destinations within Australia, new product, new aircraft.............WOWSERS:ok:

[The Bunglerat]

VBPCGUY, I agree. No doubt JB has pissed some people off in a big way, but they would typically be the same people for which it was long overdue to be shown the door anyway. As for the frontline staff, I've never seen them more hopeful and enthusiastic about going to work.

Good news for the ground staff too (re A330), however everything is a bit of "give & take." With the latest EoI email advising that the focus is now on a SYD base rather than MEL, I have to say that my original expression of interest has now lost all interest. Admittedly it was already waning when the pathetic B737+5% pay was confirmed, but the prospect of moving to SYD has sealed the deal for me. I suspect I'm not alone either. Nothing against any of you Sydneysiders out there, but I'm simply not that desperate to fly the Bus if it means moving to Sin City.

[VBPCGUY]

Bunglerat, sometimes a new broom sweeps clean it was well over due BG lost control in some respects and in his later years as CEO made some very poor descions, now new direction new ideas and someone who knows aviation inside out is leading the charge.

JB says he wants within the next two years 20% business marketshare, but I highly doubt it will stop there I think long term he will be looking for a 50/50 with QF or even surpassing QF to say 55-60% of the business market.

[bangbounceboeing]

looks like a lot more than 4 A330's are going to be needed then..................I wonder if that number may increase early in the new year?:ok:

Now what to do with PB & VA...........................

[Cypher]

Now what to do with PB & VA...........................

Don't worry.. with the way the PB rosters are at the moment, they won't have to worry about it... everybody would have left and the place would have closed itself down...

The way the rosters are at the moment, I swear that they're trying to close the place down by pi$$ing everyone off.....

[Seriously]

Vital win for Qantas rival Virgin Blue | The Daily Telegraph (http://www.dailytelegraph.com.au/business/vital-win-for-qantas-rival-virgin-blue/story-e6frez7r-1225972521959)

I doubt VA will try compete with J* using the 777...:hmm:

Another type perhaps...

PB/VA will become one at the relaunch

[inandout]

No way PB and VA will become one. Different EBA, AOC and more importantly different strategic plans.

[Seriously]

Their aircraft will look the same...

[GW_04]

No way PB and VA will become one. Different EBA, AOC and more importantly different strategic plans.
*
Well given neither PB or VA have an EBA yet the decision on that front is wide open as for now. The AOC could quite easily be merged in time given VA's approval for Intl ops (outside of VB that is).

[F111]

At the roadshows held just after John joined the company it was stated that all 3 companies will remain separate companies from an eba/agreement side of things. Operationally and from what the passengers will see they will be one company.

[slamer.]

NZ Govt approves Air NZ - Virgin Blue alliance

2:35 PM Tuesday Dec 21, 2010


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Air NZ and Virgin Blue will code share on Tasman and connecting domestic flights.

Air New Zealand and Virgin Blue have won approval from Transport Minister Steven Joyce to cooperate on routes across the Tasman Sea.
The decision follows approval being granted by Australia's antitrust regulator this month, reversing its preliminary view, after the two airlines gave guarantees on growth in capacity.
Joyce was also swayed by their commitment to maintain passenger numbers on the Tasman, according to his statement.
The two airlines will code share on Tasman and connecting domestic flights and offer reciprocal frequent flyer and lounge access agreements. Their alliance was in response to Qantas Airways Ltd.'s two-airline strategy where its low-fare Jetstar unit operates domestically in New Zealand and links to longer-haul flights on its parent.
Shares of Air NZ rose 0.7 per cent to $1.50 on the NZX and Virgin Blue rose 1.1 per cent to 45.5 Australian cents on the ASX.
Joyce said other airlines on the Tasman "will continue to provide strong competition for the alliance on most routes within and between both Australia and New Zealand."
He authorised the alliance for a period of three years and said the time limit "will place a strong incentive on the two airlines to operate in a competitive manner."
"How Air New Zealand and Virgin Blue implement the alliance, as well as the state of the market, will be taken into account in deciding whether further authorisation is given," he said.
Air New Zealand has just issued a press release saying it "welcomes today's decision" to approve the alliance.
"The Minister has recognised the benefits and value created for consumers by the alliance," said airline chief executive Rob Fyfe.
"I'm pleased that formal approval has been given, which combined with the Australian Competition and Consumer Commission's approval last week enables us to implement the alliance and deliver benefits to customers.
"Air New Zealand and Virgin Blue will now form a team to ensure we move ahead quickly with bringing the alliance to life over the coming months. We look forward to being able to connect our customers between all Australian cities served by Virgin Blue and all towns and cities where we operate in New Zealand

[slamer.]

Air NZ, Virgin sign code sharing agreement


6:20 AM Thursday Jan 13, 2011




http://media.nzherald.co.nz/webcontent/image/jpg/SCCZEN_A_300501splVIRGIN3_220x147.JPGExpand (http://www.pprune.org/#)

Air New Zealand says it has signed a code sharing agreement with Virgin Atlantic that will allow its passengers to book on many Virgin Atlantic services.
"This new code share agreement provides yet further connectivity options for our customers as well as providing important connectivity for Virgin Atlantic customers to New Zealand and also the Cook Islands," said Air NZ chief executive Rob Fyfe.
Air NZ passengers will be able to book on Virgin Atlantic between London Heathrow and San Francisco and between Hong Kong and Sydney using Air NZ's NZ flight code.

[cavemanzk]

It seems in is getting very close with the Virgin group these days. Soon they are not going to need *A, makes me wonder what they are planning.

Since both VS & DJ are for sale