ACCC authorises Virgin Australia (ASX:VAH) and United Airlines to codeshare prices

• ACCC provides interim authorisation to Virgin Australia (VAH) and United Airlines to codeshare prices
• The approval will allow both companies to put their code on passenger flights operated by the other
• Virgin Australia will be able to sell services offered from United Airlines, which includes either a standalone itinerary or one with multiple flight segments
• The decision was made on the basis of the two companies not operating on any of the same routes and other competitors with matching flight paths

The ACCC has provided interim authorisation to Virgin Australia (VAH) and United Airlines to codeshare prices.

The approval will allow both companies to put their code on passenger flights operated by the other.

Virgin Australia will be able to sell services offered from United Airlines, which includes either a standalone itinerary or one with multiple flight segments.

The decision was made on the basis of the two companies not operating on any of the same routes and other competitors with matching flight paths.

ACCC Commissioner Stephen Ridgeway does not believe it will impact competition within the industry.

“The ACCC’s preliminary view is that this proposed codeshare arrangement with United Airlines is likely to result in a public benefit as it will help Virgin Australia re-establish its international network,” he said.

“Currently, it appears that Virgin Australia is unlikely to be able to operate its own long-haul international services in the short term.”

The ACCC will now seek feedback for authorisation of other Virgin Australia applications, which includes codeshare pricing arrangements with other partner carriers.