3 November 2009

Delta Air Lines and Virgin Blue are now one step closer to joining up following the approval of the Australian Competition and Consumer Commission (ACCC) yesterday.

The consumer watchdog said in a draft determination that it did not believe the proposed alliance would harm competition.

"There is no reason to believe that the strong competition on price and service currently evident in the market from the entry of V Australia and Delta will not continue under the Joint Venture" it said.

Instead, the ACCC said the joint venture was likely to "enhance the ability of the applicants to compete more vigorously and effectively against the more established operators on the route."

In a joint statement yesterday, Delta and Virgin Blue said they welcomed the ACCC's draft decision.

"This cooperation will allow the carriers to offer seamless, integrated travel between cities throughout the Australian and US domestic markets"

They added it would also allow them to expand existing trans-Pacific schedule and introduce new direct trans-Pacific routes.

Delta and V Australia are now waiting on the U.S. Department of Transportation to approve the joint venture.