Brief: Australia's ACCC Denies Re-Authorisation Of Airline Charter Alliance

Alliance Aviation Services

05/05/2023 24:16

May 5 (Reuters) - Australian Competition and Consumer
Commission (ACCC):
    * ACCC DENIES RE-AUTHORISATION OF AIRLINE CHARTER ALLIANCE
    * DENIED VIRGIN AUSTRALIA AIRLINES AND ALLIANCE AVIATION
SERVICES’
APPLICATION FOR RE-AUTHORISATION OF THEIR AGREEMENT
    * AIRLINES HAVE NOT DEMONSTRATED TO US THAT THERE’S
SUFFICIENT
PUBLIC BENEFIT TO OUTWEIGH THE LIKELY DETRIMENT FROM THEIR
PROPOSED COORDINATION
    * CONCERNED THAT CONTINUING CHARTER ALLIANCE IS LIKELY TO
REDUCE
NUMBER OF BIDDERS IN TENDER PROCESSES FOR CHARTER SERVICES
    * UNDERSTANDS THAT A NUMBER OF CUSTOMERS DO NOT PLACE
SIGNIFICANT
VALUE ON HAVING A COMBINED CHARTER
    * ACCEPTS CHARTER ALLIANCE IS LIKELY TO RESULT IN SOME
PUBLIC
BENEFIT FROM  GREATER OPERATIONAL FLEXIBILITY FOR AIRLINES AND
SOME COST SAVINGS
    * NOT SATISFIED THAT PUBLIC BENEFITS OF AGREEMENT OUTWEIGH
PUBLIC
DETRIMENTS
    * CONSIDERS CHARTER ALLIANCE HAS NOT DELIVERED EXTENT OF
PUBLIC
BENEFITS THAT WERE FORESHADOWED WHEN ARRANGEMENTS WERE
AUTHORISED IN 2017

Source text for Eikon:  ID:nASX216Tt6 
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 ((Reuters.Briefs@thomsonreuters.com;))