Regulator proposes re-authorisation of QF-EK alliance.
The Australian Competition & Consumer Commission (ACCC) has indicated support for a renewed Qantas-Emirates alliance, announcing it proposes to grant re-authorisation for a further five years.
“The ACCC considers that the alliance is likely to continue to result in a range of public benefits,” said ACCC commissioner Roger Featherston.
“Combining the networks of Qantas and Emirates provides customers with access to more flights and destinations under a single airline code and improves connectivity,” he said.
However, the ACCC is concerned the alliance may “significantly impact” competition on the Sydney to Christchurch route, where the two carriers dominate.
To address this, the regulator plans to impose conditions requiring the partner airlines to provide regular reports on seats, passenger numbers, fares and profitability, and says it will be able to set a minimum level of capacity on the route.
The ACCC is now seeking submissions on its draft determination.
Meanwhile, the ACCC has decided to re-authorise the continued coordination of three Qantas Asian-based joint ventures, involving Jetstar Asia, Jetstar Pacific and Jetstar Japan.
See today’s Travel Daily for full details.