Virgin Australia - ACCC International Alliance Approvals

[Bagpuss]

Delta Airways - Expired September 2020 : Virgin Australia Airlines Pty Ltd & Ors - Revocation and Substitution - A91475 - A91478

Etihad Airways - Expired December 2020 : Virgin Australia and Etihad Airways - Revocation and Substitution - A91510 & A91511

Singapore Airlines - Expires September 2021 : Virgin Australia & Singapore Airlines - Revocation & Substitution - A91539 & A91540

 

[ozstamps]

Hmmm.

 

[Bagpuss]

Hmmm.

Hmmm indeed. Some people would think WiFi is a high priority, this is critical problem for long term survival....

 

[AustraliaPoochie]

Wonder if there will be any renewals for the next 5 years, or more or less, they will have to make a move now, if they want to get flying when international borders open, partnership wise.
OR have none of the former interested parties have made any moves for an extension, for the forseeable future, Covid aside.
OR Bain will hold for a long time, on and on, keeping quiet, JH did say international partnerships were very important, but can she be held to account for that.

 

[HS-TQE]

Considering the partnerships with the 'big 3' were scaled back whilst in administration to interlines and minimal codeshares (this was also reported with the likes of ET, etc), this isn't too surprising.

The question is whether if they'll rei=mplement/re-apply for the JVs of the 'Big 3' or renegotiate a scaled back 'improved' partnership considering VA will only be flying short-haul international for the foreseeable future.

 

[jakeseven7]

Damn thought this thread was about SQ coming back onboard with the SQ trap door for points.....

 

[Matt_01]

Out of curiosity is there a cost associated with filing for approvals.

 

[henrus]

I don't see any of this as a major problem (at least in the next 12 months). Until international travel picks up there isn't any major need to renew these types of things. I'd actually argue that domestic wifi is more important as it has the ability to help the business short term with the routes they're currently operating.

Looking at the three airlines:

Delta suggested very early on that they aren't interested in resuming a JV until VA flies to the US again. VA to the US again is unlikely to happen in the short term and hence rules out the need to renew their approval for a JV.

Etihad is an interesting case as they've pulled a lot out of Australia and are no longer a VA owner I take it they don't care as much. You can now find Etihad selling Jetstar and Qantas connections within Australia something that you wouldn't 12+ months ago. If this is the case then perhaps Etihad is moving away from VA altogether.

Finally Singapore airlines, I think they've got the most to lose given they don't have a local connection partner and VA does drive a lot of traffic on the AU-SIN routes. Renewing this one might happen sooner if the proposed AU-SG bubble does occur.

Until VA starts selling flights on these airlines again (some of which they may never do) then it's not really that essential to renew. They aren't going to get many submissions going against any of these agreements either, realistically Qantas is the only one who'll kick a fuss, and given we've got QF-AA, QF-EK and now QF-JL it'd be a bit of pot calling the kettle black for them to do that. (Unless REX decides to call it predatory on their future business plans )

Out of curiosity is there a cost associated with filing for approvals.

$7500, which in the grand scheme of things is nothing.

Exemptions

A business that is planning an activity that will or may breach competition law can seek an exemption. Exemptions are only given for conduct that doesn't substantially lessen competition or that has a net public benefit.

www.accc.gov.au

 

[HS-TQE]

Etihad is an interesting case as they've pulled a lot out of Australia and are no longer a VA owner I take it they don't care as much. You can now find Etihad selling Jetstar and Qantas connections within Australia something that you wouldn't 12+ months ago. If this is the case then perhaps Etihad is moving away from VA altogether.

Finally Singapore airlines, I think they've got the most to lose given they don't have a local connection partner and VA does drive a lot of traffic on the AU-SIN routes. Renewing this one might happen sooner if the proposed AU-SG bubble does occur.

Until VA starts selling flights on these airlines again (some of which they may never do) then it's not really that essential to renew. They aren't going to get many submissions going against any of these agreements either, realistically Qantas is the only one who'll kick a fuss, and given we've got QF-AA, QF-EK and now QF-JL it'd be a bit of pot calling the kettle black for them to do that. (Unless REX decides to call it predatory on their future business plans )

Singapore also sell QF domestic interlines alongside the VA interline/codeshares, in return QF were selling SQ interlines to India.

Doesn't cost much for SQ to dip in both ponds by selling interlines for both carriers, in addition to some limited codeshare/FF earn for VA if the SQ management feels that the VA partnership isn't as important as previous managements.

IMHO, I think that SQ got their aim of getting increased Krisflyer FF accounts and brand awareness/traffic through their ill-fated expensive stake in VA, which of course could've been done without acquiring a stake in VA in the first place.

 

[HS-TQE]

I wonder what will be the scaled back FF/partnership arrangements post September 2021 for SQ as the Alliance partnership is set to expire in a few weeks.

Due to the ongoing COVID pandemic, Will the partnership be scaled back to the same FF/Interline/Limited Codeshare like the other 2?

 

[jakeseven7]

I wonder what will be the scaled back FF/partnership arrangements post September 2021 for SQ as the Alliance partnership is set to expire in a few weeks.

Due to the ongoing COVID pandemic, Will the partnership be scaled back to the same FF/Interline/Limited Codeshare like the other 2?

I suppose it’s not on their top priority to sort out is the best answer I can think of

 

[henrus]

If anything it's SQ that will be disadvantaged the most right now. They're still selling VA operated but SQ coded flights for connections onto their flights out of Australia. It isn't that big of an impact as they'll still be able to interline/sell the flights as VA coded and operated.

 

[HS-TQE]

If anything it's SQ that will be disadvantaged the most right now. They're still selling VA operated but SQ coded flights for connections onto their flights out of Australia. It isn't that big of an impact as they'll still be able to interline/sell the flights as VA coded and operated.

SQ also sell QF interlines, so I would say the impact isn't as big had they kept exclusive to VA.

I would suspect they'd (VA/Velocity) would keep the FF/Lounge arrangements for SQ although they may be on the operating carrier's code like they did for EY and DL (although now requires a same day connection).