Tiger tantrum at Virgin’s trans-Tasman alliance
Tiger Airways will take its objections to Virgin Blue’s joint venture with Air New Zealand on the trans-Tasman route to the regulatory authorities.
Tiger, which is backed by Singapore Airlines, believes a lessening in competition caused by the two airlines joining forces will lead to increased fares and reduced services.
The Age reports that in a submission to the competition regulator, Tiger’s new Australian boss, Crawford Rix, said the two airlines were experiencing the ”economic reality facing the whole industry”.
He said the two airlines should work separately to weather the storm rather than form a union that would not benefit travellers.
”If allowed to combine their activities, [the airlines] have the ability to eventually reduce flights and seat numbers, reduce frequencies or services on marginal routes, and could utilise their increased combined market power to raise prices and prevent potential new entrants,” he said.
Virgin Blue and Air New Zealand announced their plans for a revenue-sharing alliance last month, in a bid to bolster their defences against Qantas and Jetstar’s push into the trans-Tasman market.
Meanwhile, Tiger has announced more flights from its new base at Melbourne’s Avalon Airport.
Flights from Avalon to Sydney, Rockhampton, Mackay and Alice Springs have been added to recently announced flights to the Gold Coast, Adelaide and Perth.
Tickets for the new Avalon routes to Sydney, Rockhampton, Mackay and Alice Springs are on sale now.
Ian Jarrett
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