Update on the VA/DL joint venture

[notzac]

Couldn't find this posted anywhere else ... it appears the Australian Government has asked the US DOT what gives:

Canberra lobbies for Virgin Blue

In a sign of the clout in Canberra of Virgin Blue's new boss, John Borghetti, the government has written to the US Department of Transportation urging it to come to a ''positive outcome'' in its final deliberation on the proposed alliance between the two airlines on the Australia-US route.

 

[oz_mark]

Even Qantas thinks it's good for Qantas

Qantas boss Alan Joyce has said he believes approval of the deal will be positive for airlines on the route because it will lead to a much-needed rationalisation.

But I guess that means bad for consumers!

 

[samh004]

Did the kiwis approve the other tie-up? If so I wonder if that means the Australian government would think twice if the New Zealand government asked them a similar question. The shoe being on the other foot, so to speak.

 

[oz_mark]

Did the kiwis approve the other tie-up? If so I wonder if that means the Australian government would think twice if the New Zealand government asked them a similar question. The shoe being on the other foot, so to speak.

I dare say that there is some lobbying going on there as well.

 

[SeaWolf]

But I guess that means bad for consumers!

The two aren't always mutually exclusive, this could be good for both if it keeps airlines in the market that would have otherwise found the route unprofitable and exited, reducing overall competition.

Having said that, 'rationalisation' is often not positive for consumers.