Skywest has received interim approval from the competition watchdog for its corporate tie-up with Virgin Australia.
The ACCC gave its authorisation to the proposal on Wednesday, which would see the airlines offering bundled air passenger transport services to corporate customers seeking charter, domestic and international flights.
Skywest chief executive Mark Shelton said the airline would commence working with Virgin on the new alliance immediately.
The ACCC will give its final ruling on the proposal after the public submission period, which closes January 27.
At close of trade today, Skywest stocks had lost 4 per cent, to trade at 35.5 cents.