[MarkR]

https://www.accc.gov.au/media-releas...arter-alliance

The ACCC has denied Virgin Australia Airlines and Alliance Aviation Services’ (ASX:AQZ) application for re-authorisation of their agreement to coordinate and jointly tender for and supply services to corporate customers, mainly for fly-in fly-out employees.

“This application involves the second and third largest providers of FIFO services jointly tendering and coordinating services. The airlines have not demonstrated to us that there’s sufficient public benefit to outweigh the likely detriment from their proposed coordination, so we have decided not to re-authorise the conduct,” ACCC Chair Gina Cass-Gottlieb said.

“We’re concerned that continuing the charter alliance is likely to reduce the number of bidders in tender processes for charter services, particularly when there would only be one other large provider of these services, and so the potential incentives to reduce service levels or raise prices for FIFO charter services would remain.”