Virgin Blue looks likely to be given approval by the Australian Competition and Consumer Commission on a code sharing agreement with Middle East airline Etihad, with draft approval given by ACCC the same day the competition regulator approved Virgin Blue’s alliance with Air New Zealand.
Qantas Airways is reportedly in talks with potential partners for its budget airline Jetstar to establish regional hub access in China and India to combat Virgin Blue’s deal with Etihad giving it access to the middle east.
Virgin Blue’s alliance with Etihad to code share on flights between Australia and the Middle East has received interim approval by the ACCC despite objections from rival Qantas.
Virgin Blue has accused Qantas of hiding behind Australia’s competition regulator the ACCC in its submissions to the regulator opposing Virgin Blue’s proposed deal with Etihad.
Qantas is taking the fight to Virgin Blue’s plans to dominate the domestic air travel market amongst business travellers by adding 820,000 seats to its Jetstar discount airline.
Virgin Blue Holdings Limited, who run both Virgin Blue and V Australia and Etihad Airways PJSC today signed an agreement to enable V Australia to fly into Abu Dhabi from 2011.
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