Virgin Australia received re-authorisation from the ACCC for its existing alliance with Etihad Airways for a further five years, operating between Australia and the Middle East.
Under the alliance, the airlines cooperate on joint pricing and scheduling of services across their networks. Virgin and Etihad will not share revenue under the alliance.
ACCC chairman Rod Sims said the alliance would be likely to continue to deliver public benefits by promoting competition and enhancing the products and services offered to customers travelling between Australia and the Middle East and onward to destinations throughout Europe.
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