A charter alliance agreement between Virgin Australia (VA, Brisbane International), Virgin Australia Regional (VA, Perth International) (VARA) and Alliance Airlines (QQ, Brisbane International) has been approved by the Australian Competition and Consumer Commission (ACCC). The agreement allows the carriers to work together to attract corporate charter customers for the provision of fly-in-fly-out (FIFO) air services across Australia.
The Charter Alliance additionally extends to cooperation across aircraft maintenance, procurement of aircraft and parts, parts pooling, airport operations, airport handling, check-in, frequent flyer programs, lounge access, scheduling, pricing, sales and marketing and service policies.
VARA operates from its main hub at Perth International airport, primarily providing charter flights throughout Western Australia. For its part, Alliance Airlines has a national network of charter services but only offers limited regular passenger services.
The agreement had been tentatively rejected by the ACCC in December of last year, with the commission finding that it would be likely to lessen competition, particularly in Western Australia where both VARA and Alliance already operate. In changing its mind, the ACCC said that it had further considered market conditions and submissions from the carriers and the agreement is thus now approved.
"The ACCC considers that the Charter Alliance is likely to result in public benefits in the form of operational efficiencies, enhanced products and services, and the promotion of competition in the supply of fly-in-fly-out (FIFO) services, particularly on the east coast and in central Australia," the ruling says.
The Charter Alliance has been approved for five years, until June 9, 2022.
