The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to grant authorisation for a joint venture between Virgin Blue and Delta Air Lines on their flights between Australia and the United States (the trans-Pacific routes).

Under the joint venture, the airlines would take a coordinated approach to a range of issues including pricing, revenue management, schedules, capacity and routes flown.

"The ACCC considers that the joint venture is likely to assist Virgin Blue and Delta to compete more effectively against the incumbents on the routes, Qantas and United Airlines," ACCC Chairman, Graeme Samuel, said.

The ACCC stated it recognises that the extent to which these benefits are realised will depend largely on the conduct of the parties under the joint venture. Therefore, ACCC proposed to grant authorisation for a limited period of three years.

3 November, 2009