The Australian Competition and Consumer Commission has cleared the way for a five-year alliance between Skywest and Virgin Australia.
The agreement will allow the airlines to offer bundled air passenger transport services to corporate customers who seek an integrated suite of charter, domestic and international services, such as mining companies with large fly-in-fly-out workforces.
"The ACCC considers that the Corporate Alliance will promote competition by enabling Virgin Australia and Skywest to offer a more extensive integrated air service package to corporate customers in competition with Qantas and its affiliates," ACCC chairman Rod Sims said.
"This is likely to result in public benefits such as enhanced products and services available to corporate customers, increased choice of integrated service providers and potentially lower prices due to closer competition."
Skywest shares were unchanged at 35.5 cents at 9.30am while Virgin shares were up 0.7 cents, or 1.73 per cent, to 41.2 cents.