UPDATED: The Australian Competition and Consumer Commission has approved the proposed transtasman alliance between Air New Zealand and Virgin Blue. On this side of the Tasman, Transport Minister Steven Joyce still has to approve the deal.
UPDATED: The Australian Competition and Consumer Commission has approved the proposed transtasman alliance between Air New Zealand and Virgin Blue.
On this side of the Tasman, Transport Minister Steven Joyce still has to approve the deal.
But ACCC approval - now in the bag - was regarded as the trickiest obstacle to the deal.
"I'm pleased that formal approval has been given recognising the benefits this will bring to our customers," says Air New Zealand boss Rob Fyfe.
As part of the process Air New Zealand and Virgin Blue were able to respond to the ACCC's draft determination and address initial concerns by providing guarantees on capacity growth.
Air New Zealand expects a decision on its alliance application to the New Zealand Minister of Transport within the next few days.
Mr Joyce was not available but a spokesman told NBR a decision whether to approve the alliance would be made before Christmas.
"We're just awaiting final advice from officials."
Virgin Blue boss John Borghetti is a surprise guest at the global meeting of Star Alliance executives in Queenstown on Monday.
The Australian airline is not a member of the Star Alliance, which includes Air New Zealand, United, Singapore Airlines and Lufthansa.
Mr Borghetti's presence was widely tipped as a precursor to a code-sharing deal with the alliance.
An Air NZ-Virgin hookup would have appeal for the Star Alliance as a whole, because the group does not currently feature an Australian domestic carrier.
If approved by Mr Joyce, the alliance will have the following key components:
Mr Fyfe told NBR earlier this week that if the alliance got the go-ahead, it would take around 6 months for the airlines to integrate their IT systems and codeshare flights would begin mid-2011.
Air New Zealand shares (NZX:AIR) are up 4c to $1.47 today, approaching their 52-week high of $1.50.
