20 Sep 2010

Virgin Blue continues to pursue Air NZ alliance

12:57 pm on 20 September 2010

Virgin Blue will keep fighting for approval of an alliance with Air New Zealand, its chief executive says.

The airline is planning alliances with three airlines: Delta Air Lines on Australia-US services, Abu Dhabi-based Etihad Airways and with Air New Zealand.

Earlier this month, the Delta proposal was blocked by the US Department of Transport while the Air New Zealand proposal was given the thumbs down by the Australian Competition and Consumer Commission (ACCC).

Virgin Blue chief executive John Borghetti says the knock backs are very disappointing, but it plans to discuss its Air New Zealand plan with the ACCC in the coming weeks.

Mr Borghetti declined to say whether Virgin Blue would consider appealing to the Competition Tribunal if the ACCC continued to block the Air New Zealand bid, but says Virgin Blue will go to all lengths to pursue all three tie-ups because they were good for consumers.

Meanwhile, United Airlines and Continental Airlines have been cleared to merge, creating the world's largest carrier.

The merged airline will be known as United Airlines.

British Airways and Iberia plan to merge next year, creating the largest carrier in Europe.