ACCC to grant re-authorisation to Qantas-Emirates alliance

19 February 2018 (Last Updated February 19th, 2018 10:34)

The Australian Competition and Consumer Commission (ACCC) is proposing to grant re-authorisation to an alliance between Qantas Airways and Emirates for another five-year period.

The Australian Competition and Consumer Commission (ACCC) is proposing to grant re-authorisation to an alliance between Qantas Airways and Emirates for another five-year period.

Initially, the authority authorised the alliance for five years in 2013.

The global alliance covers the air passenger and cargo transport operations of Qantas and Emirates.

ACCC commissioner Roger Featherston said: “The ACCC considers that the alliance is likely to continue to result in a range of public benefits.

“The ACCC’s concern is that the alliance may significantly impact competition on one route between Sydney and Christchurch from the Virgin Australia and Air New Zealand alliance.”

“Combining the networks of Qantas and Emirates provides customers with access to more flights and destinations under a single airline code and improves connectivity.”

“Loyalty programme members will also continue to benefit from the ability to earn and redeem points on both networks and use lounge access and other reciprocal benefits.”

However, the ACCC’s concern is that the alliance may significantly impact competition on one route between Sydney and Christchurch from the Virgin Australia and Air New Zealand alliance.

In order to resolve the concern, the ACCC is planning to impose a condition requiring the alliance to provide daily reports on seats and passengers flown, fares and route profitability.

Furthermore, with the condition in place, the ACCC will be able to determine a minimum level of capacity on the route at any time.

The ACCC has urged interested parties to file their responses to the decision by 7 March 2018, before it makes a final decision whether to re-authorise the alliance and impose conditions.