Virgin Australia, Air New Zealand secure approval from competition watchdog for trans-Tasman alliance Virgin chief John Borghetti has had a win. THE competition watchdog has ruled that Virgin Australia's tie-up with Air New Zealand can continue - but there are strings attached. The Australian Competition and Consumer Commission today issued a "final determination," approving the trans-Tasman alliance until October 31, 2018. It follows a draft ruling on the matter in July. ACCC commissioner Jill Walker said the alliance of the airlines' respective domestic networks would likely be good for flyers. It would "allow the two airlines to offer enhanced products and services, such as new (flight) frequencies and increased access to loyalty program benefits and lounges," Dr Walker said. It is a win for Virgin chief John Borghetti, who is striving to steal more market share from Qantas. Without the alliance, Virgin Australia's flights across the Tasman would be more limited than its key competitors, the watchdog said. The ACCC said the alliance was unlikely to reduce competition on most trans-Tasman routes but it might affect competition on some of them. Therefore, the watchdog required that Virgin Australia and Air New Zealand maintain a certain capacity - the number of passengers they can fly - across these routes. The ACCC said it would review the airlines' capacity additions in light of growth in demand over the next two years. It said the review would start in September 2015. The airlines must also provide performance figures to help the ACCC assess whether the alliance is adversely affecting competition. Shares in Virgin Australia were 0.5 per cent higher at 40.7c shortly before noon today.