ACCC cites “significant public detriments” from allowing Qantas and JAL to cooperate.
The Australian Competition and Consumer Commission (ACCC) has just issued a draft decision on the proposed Joint Business Agreement between Qantas and Japan Airlines, saying that eliminating competition on routes between Australia and Japan would be likely to result in significant public detriments.
The ACCC says the pact was “likely to give Qantas and Japan Airlines an increased ability and incentive to unilaterally reduce capacity…allowing them to increase airfares on the Melbourne-Tokyo and/or Sydney-Tokyo routes”.
Although the COVID-19 pandemic is significantly impacting passenger numbers, as travel returns to previous levels the anti-competitive detriment resulting from the proposed coordination is likely to increase, the Commission said.
Submissions are being invited in relation to the draft determination, with input requested by the ACCC by 27 May.
Qantas said it was “obviously disappointed” at the negative decision.
More details in today’s issue of Travel Daily.