Business
Virgin Asks Regulators to Stop Qantas-Emirates Tie-Up
Virgin Australia is making noise and has asked the Australian Competition and Consumer Commission to step in and stop the tie-up of Qantas and Emirates. The alliance is connected with the trans-Tasman route.
Virgin Australia has argued that the alliance has no benefit for the flying public. The airline alleges that the “claimed public benefits” that Qantas and Emirates are harping on do not extend to their New Zealand and Australia routes.
The airline company also said the ACCC should consider excluding the competition issue.
Virgin and Air New Zealand have their own alliance on the same trans-Tasman route that has been implemented since 2010.
The alliance of Qantas and Emirates has been given tentative approval by the ACCC despite some concerns. The regulator said it is making the two airlines accountable to their commitment that the two will not reduce its overall capacity between the Australia and New Zealand routes.
Virgin Australia, however, is opposing the move. The airline company is also waiting for the ACCC’s decision over its approval on Virgin’s takeover of Tiger Australia.