Virgin Australia has won regulatory approval from the Australian Competition & Consumer Commission to acquire regional carrier Skywest.

Under the agreement, Skywest will become part of the Virgin Australia brand but will continue to operate under its current Air Operator Certificate with its own management team, based in Western Australia.

This will enable Virgin Australia to fast-track its growth in regional Australia and develop a more integrated network, service and frequent flyer program for the benefit of its customers.

Virgin Australia chief executive John Borghetti said: “The ACCC’s clearance represents an important step for Virgin Australia in completing the proposed acquisition of Skywest.

“This acquisition will enable us to accelerate our expansion in the high growth fly-in-fly-out and regional markets, increasing competition in these important segments and bringing new benefits to customers.

“It will also be very positive for business and tourism, particularly in Western Australia and regional Australia, as we will invest to support the growth of Skywest,” Borghetti added.

The proposed transaction still remains subject to certain conditions and regulatory approvals, including Foreign Investment Review Board approval, Skywest shareholder approval and the approval of the Singapore High Court.