Virgin Blue Holdings Ltd (ASX: VBA) got the nod this time following a series of setbacks on its proposed alliances with Delta Air Lines in US and Air New Zealand in trans-Tasman routes as the Australian Competition and Consumer Commission (ACCC) gave its green light for the carrier's planned collaboration with Etihad Airways.

In its preliminary decision, the ACCC is now allowing both airlines to commence its planned cooperation on pricing and scheduling, also giving them authority to market the partnership's product offerings as they wait for the final ruling on the alliance application that would upgrade passenger capacity on service routes between Australia and Abu Dhabi.

ACCC chairman Graeme Samuel said that the interim authorisation was handed down in view of the fact that "Virgin Blue and Etihad currently do not operate any competing services, as well as the lead time required to market and sell tickets before the commencement of long-haul services."

Reacting to the positive news, Virgin Blue Group chief executive John Borghetti said that the company would start offering seats on the Australia-Abu Dhabi service routes by October 1, adding that "Virgin Blue will now be able to deliver an alternative and competitive network to the Middle East, Europe, United Kingdom and beyond."

Mr Borghetti hailed the ACCC ruling as a significant breakthrough that would eventually pave the way for Virgin Blue to "create a global international network, greater competition on the international landscape and benefit our guests with great value fares, better scheduling and more choice."

According to the blueprint of Virgin Blue's proposed alliance with the Middle East-based carrier, Etihad Airways and V Australia are set to offer 27 weekly flights between Australia and Abu Dhabi that would cover two daily flights between Abu Dhabi and Sydney, six flights each week between Abu Dhabi and Brisbane and a daily flight between Abu Dhabi and Melbourne.

Virgin Blue said that service routes cooperation were expected to commence on February 2011, with V Australia set to service three Sydney-Abu Dhabi routes each week that would mark the return of an Aussie airline in the Middle East since 1991.