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Merged: Virgin Blue/Air New Zealand Alliance Approved

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Merged: Virgin Blue/Air New Zealand Alliance Approved

Old 15th Dec 2010, 22:22
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Merged: Virgin Blue/Air New Zealand Alliance Approved

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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forgetabowdit is offline  
Old 15th Dec 2010, 22:25
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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...
piston broke again is offline  
Old 15th Dec 2010, 23:05
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VB/ANZ alliance approved

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.
trashie is offline  
Old 15th Dec 2010, 23:16
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Great to hear. It will be interesting to see what degree of consolidation and expansion occurs with the 2 airlines accross the Tasman.
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Old 16th Dec 2010, 03:58
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Better lock up all your spares.
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Old 16th Dec 2010, 06:55
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Better lock up all your spares

Its an alliance not part ownership.
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Old 16th Dec 2010, 07:56
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EXCELLENT!!!!!!!
Great news.
Now what's the missing piece ? TURBOPROPS.
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Old 16th Dec 2010, 08:27
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Now what's the missing piece ? TURBOPROPS
They shouldn't be missing for long.
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Old 16th Dec 2010, 09:07
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Word has it the boss told a crew on a recent flight they ( turboprops) are coming.
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Old 16th Dec 2010, 10:02
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Since QF got Network it is only fair now that VB take over Maroomba or Skippers and there you have your turbo-prop organisation.
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Old 16th Dec 2010, 10:41
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Pontoon

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
stubby jumbo is offline  
Old 16th Dec 2010, 10:48
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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.
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Old 16th Dec 2010, 11:47
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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.
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Old 16th Dec 2010, 11:51
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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?

Bitter with a twist aye TG cuzzy-bro!
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Old 16th Dec 2010, 12:08
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remember what happened to the last airline that got tied up with them, Ansett.
Oh yes, Déjà vu? nah, no money involved this time.
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Old 16th Dec 2010, 15:52
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[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?
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Old 16th Dec 2010, 21:49
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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.
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Old 16th Dec 2010, 22:02
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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...
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Old 17th Dec 2010, 00:11
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No, QLD,NSW, VIC, TAS and SA.
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Old 17th Dec 2010, 05:26
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Huge mistake Qantas, Huge mistake...
Couldn't agree more
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