Virgin cleared to snap up Skywest
The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose Virgin’s proposed acquisition of Skywest Airlines.
The announcement clears the way for Virgin to acquire the Perth-based regional airline, along with its fleet of 28 aircraft, that predominately runs freight transport services throughout Western Australia.
“The ACCC’s view is that this acquisition is unlikely to lead to a substantial lessening of competition in any relevant market, primarily because the direct overlap between Virgin Australia and Skywest’s services is limited to a single route between Perth and Broome,” ACCC Chairman Rod Sims said.
The ACCC announced it had reached the conclusion following a wide ranging consultation period with charter airlines, airports, potential charter customers and industry bodies.
“The message that we received from the market was broadly supportive of the proposed acquisition. The services that Virgin and Skywest supply are seen as largely complementary, rather than competitive with each other,” Mr Sims said.
The ACCC also took into account the competitive constraint arising from the presence of Qantas and a number of regional airlines operating in Western Australia, including on flights between Perth and Broome as well as charter services.