Trouble brewing across the Pacific ocean with reports that the Department of Transport is denying Virgin Blue Group and Delta Airlines anti-trust immunity for cooperation over Pacific Routes.
To quote the DOT:
“The weight of the evidence suggests that the primary effect of a grant of anti-trust immunity at this time would be to improve the market share of Delta and V Australia, without certainty that the applicants will be making structural improvements in the market that would create large-scale public benefits,”
Oh dear. There’s also a note that both have only entered the US
Australia market, with no developed plans to operate as commercial partners, and limited public benefits.
Ouch.
Whilst the joint venture was approved by the Australian Competition and Consumer Commission (ACCC) in December 2009, the DOT approval was required.
This is an interesting play, and may force these two companies to seek new help. SkyTeam has limited Australian and New Zealand coverage, so this comes as a blow to them, whilst V Australia is still finding it’s feet in this operation. Will these companies turn to others?