Qantas wants Virgin to stand alone
International and domestic airline company Qantas Airways Limited (ASX: QAN) strikes again at competitor Virgin Blue Holdings Limited (ASX: VBA).
Qantas submitted its position with the Australian Competition and Consumer Commission (ACCC) on Virgin Blue's alliance with Abu Dhabi-based Etihad. The airliner called on the consumer watchdog to brush off the competitor's appeal for a prompt interim decision.
An alliance with Etihad would put Virgin's V Australia subsidiary operating to Abu Dhabi in an arrangement involving code sharing, joint frequent flyer programs, and co-ordinated pricing and scheduling. V Australia has already announced cancellation of flights to other destinations to free up aircraft for Abu Dhabi.
Qantas has expressed apprehension because the two airlines have not mentioned the pricing arrangements between Australia and Britain-Europe. In a statement to media, the airliner explained that “passengers will suffer considerable harm and inconvenience if tickets are booked on a new service during the interim period but final authorisation is ultimately denied... This is particularly unnecessary where a high degree of competition already exists on the Australia to UK-Europe route.”
Qantas insists for the ACCC “to consider the proposed alliance in totality . . . before the applicants begin any co-operation.”
Virgin Blue's earlier attempts on forming international alliances has been rejected by the ACCC and the US Department of Transportation.