Regulators approve Delta/Virgin Blue

It looks like Delta intends to stay on the LAX-SYD route….not good news for QANTAS and UAL.

http://online.wsj.com/article/BT-CO-20091209-717313.html

SYDNEY (Dow Jones)–Australia’s competition regulator confirmed Thursday it will allow Virgin Blue Holdings Ltd. (VBA.AU) and Delta Air Lines Inc. (DAL) to enter into a joint venture on flights between Australia and the U.S., leaving only the approval of U.S. aviation regulators required to allow the airlines to co-operate on the route.

In a statement the Australian Competition and Consumer Commission, which granted provisional approval for the alliance last month, said the airlines, both recent entrants on the transpacific route, would be allowed to coordinate their pricing, scheduling and capacity.

“The ACCC considers that the joint venture is likely to assist Virgin and Delta to compete more effectively against the incumbents on the routes ??? Qantas and United Airlines,” ACCC chairman Graeme Samuel said.

-By Bill Lindsay, Dow Jones Newswires; 61-2-8272-4694; [email]bill.lindsay@dowjones.com[/email]