Qantas talks up “huge benefits"

Qantas will attempt to persuade competition regulators that its new tie-up with Emirates will not see consumers suffer.

The far-reaching arrangement, scheduled to start in April 2013, must first win approval from a number of regulators. The Australian Competition and Consumer Commission (ACCC) has made it clear it will examine the proposed arrangement carefully, with fare levels expected to come under particular scrutiny.

Qantas chief executive Alan Joyce insisted over the weekend that the deal would be positive for consumers, and would stimulate competition.

“I think there are huge positive benefits for frequent flyers, scheduling into Asia and scheduling on the trans-Tasman that we’ll be taking the ACCC through,” he told the ABC’s Inside Business.

Meanwhile, ratings agency Standard & Poor’s downgraded the carrier’s credit rating late last week, despite welcoming the news of the alliance.

“Material benefits from the partnership may take some time to eventuate due to the magnitude of Qantas’ losses over the past few years and the increasing industry risk,” it said.