Australian Watchdog Blocks Virgin Blue-Air NZ Alliance

Law360, New York (September 10, 2010, 3:29 PM EDT) -- Virgin Blue Group's bid to form a partnership with Air New Zealand Ltd. to coordinate flights across the Tasman Sea was blocked by Australia's competition watchdog Friday, two days after U.S. regulators thwarted another proposed alliance by the airline.

In a draft order, the Australian Competition and Consumer Commission proposed denying the joint venture between Virgin Blue and Air New Zealand, saying the alliance would likely reduce competition and offer little benefit to the public.

“The ACCC believes that Virgin Blue is a significant competitor to...
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