ACCC approves alliance between Virgin Blue and Air New Zealand

AUSTRALIA'S competition watchdog (ACCC) today made an about-turn to conditionally approve an alliance between Virgin Blue and Air New Zealand.

ACCC authorised the alliance on trans-Tasman routes for three years.

It has also required the airlines to maintain and grow seat numbers on those routes where it has identified competition issues.

ACCC considers that the alliance is likely to benefit passengers in a number of ways, including more choice of routes and frequencies, and potentially lower fares as a result of cost savings and efficiency improvements.

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