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Delta, Virgin Blue welcome ACCC draft decision on joint venture application

Direct News Source

02-Nov-2009 Delta Air Lines (NYSE: DAL) and the Virgin Blue Airlines Group (ASX: VBA) welcome the Australian Competition and Consumer Commission’s (ACCC) draft determination to grant authorisation to the airlines’ proposed joint venture.

The draft determination recognises that the proposed alliance will enhance the strong competition on trans-Pacific routes. The proposed alliance will allow the carriers to provide an enhanced service and develop future services and routes, through collaboration on route and product planning, codesharing on their respective networks and the extension of frequent flyer program benefits and lounge access to customers of both airlines.

This cooperation will allow the carriers to offer seamless, integrated travel between cities throughout the Australian and US domestic markets. This enhanced network-to-network product will enable the maintenance and expansion of existing trans-Pacific scheduling and the introduction of new direct trans-Pacific routes.

The proposed alliance also fulfils a key policy rationale behind the Australia-US Open Skies Agreement, introducing further and sustained competition on one of Australia's most important air routes.

Delta and Virgin Blue will continue to cooperate with the ACCC as part of the authorisation process and look forward to the final decision in due course. Delta and V Australia are awaiting a similar positive decision from the U.S. Department of Transportation in order to proceed with their joint venture.