News: AQZ Australia's ACCC Denies Re-Authorisation Of Airline Charter Alliance

May 5 (Reuters) - Australian Competition and Consumer Commission (ACCC):

• ACCC DENIES RE-AUTHORISATION OF AIRLINE CHARTER ALLIANCE
• DENIED VIRGIN AUSTRALIA AIRLINES AND ALLIANCE AVIATION SERVICES’ APPLICATION FOR RE-AUTHORISATION OF THEIR AGREEMENT
• AIRLINES HAVE NOT DEMONSTRATED TO US THAT THERE’S SUFFICIENT PUBLIC BENEFIT TO OUTWEIGH THE LIKELY DETRIMENT FROM THEIR PROPOSED COORDINATION
• CONCERNED THAT CONTINUING CHARTER ALLIANCE IS LIKELY TO REDUCE NUMBER OF BIDDERS IN TENDER PROCESSES FOR CHARTER SERVICES
• UNDERSTANDS THAT A NUMBER OF CUSTOMERS DO NOT PLACE SIGNIFICANT VALUE ON HAVING A COMBINED CHARTER
• ACCEPTS CHARTER ALLIANCE IS LIKELY TO RESULT IN SOME PUBLIC BENEFIT FROM GREATER OPERATIONAL FLEXIBILITY FOR AIRLINES AND SOME COST SAVINGS
• NOT SATISFIED THAT PUBLIC BENEFITS OF AGREEMENT OUTWEIGH PUBLIC DETRIMENTS
• CONSIDERS CHARTER ALLIANCE HAS NOT DELIVERED EXTENT OF PUBLIC BENEFITS THAT WERE FORESHADOWED WHEN ARRANGEMENTS WERE AUTHORISED IN 2017