QF, EK get green light but with conditions

QF, EK get green light but with conditions
By admin


Qantas and Emirates have been given draft approval to form an alliance for five years – half the number requested by the carriers – but conditions have been imposed on trans-Tasman cooperation amid fears of reduced capacity and higher prices.

In a ruling issued this morning, the competition regulator told the airlines they must maintain a base level of capacity on four overlapping routes; Sydney-Auckland, Melbourne-Auckland, Brisbane-Auckland and Sydney-Christchurch.

The Australian Competition and Consumer Commission (ACCC) said the condition will ensure Qantas and Emirates do not reduce the number of seats in order to raise prices.

ACCC chairman Rod Sims said the alliance overall will result in "material, although not substantial benefits to Australian consumers".

"The ACCC is of the view that the main benefit arising from the alliance is an improved product and service offering by the two airlines to their customers," he said. "This includes increased customer access to each others' flights, destinations and frequent flyer programs."

While the ACCC concluded the impact of the alliance could result in "some public detriments" on routes where Qantas and Emirates overlap, those detriments would be mitigated by others factors, including competition from established airlines.

However, that would not extend to overlapping trans-Tasman routes where there was a threat of reducing or limiting capacity "in order to raise airfares", the ACCC said.

"Therefore the ACCC is proposing a condition to restrict the ability of the alliance in this regard," Sims said.

The introduction of a second requirement to grow the number of seats on the four routes "in accordance with a specified growth factor" was delayed following claims by Qantas and Emirates that there is already excess capacity.

Sims said: "Given the dynamic nature of the aviation industry, the limited extent of the public benefits and the significant role of the trans-Tasman capacity condition, the ACCC considers it appropriate to review this authorisation earlier than the 10 years requested by Qantas and Emirates.

"In the circumstances, the ACCC proposes to grant authorisation for five years."

Submissions are requests from Qantas, Emirates and other interested parties ahead of a final ruling.

 

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • News

Caravan Living on the Rise: Aussies Seek Freedom, Flexibility, and Adventure on the Open Road

Caravanning in Australia is experiencing a remarkable surge in popularity, attracting a broad range of people seeking the freedom to live on their terms, Canvas8 data shows. As the cost of housing continues to climb, caravanning offers a flexible and affordable alternative that allows individuals to explore the vast Australian landscape while retaining the comforts […]

  • Cruise
  • Food & Beverage

Holland America Line refreshes Rudi’s Sel de Mer specialty restaurant

Holland America Line has announced it is updating Rudi’s Sel de Mer with a relaxed Mediterranean bistro fool aboard Rotterdam, Nieuw Statendam and Koningsdam. The intimate venue features casual but classic Mediterranean dishes that reflect the cuisine of regional countries including Italy, France, Spain, and Greece. The new concept is rolling out in January and February 2025. […]

  • Road & Rail

Man with a caravan provides expert tips for making the right choice

As caravan buying surges for new year holiday makers, Crusader Caravans has provided expert tips to help Aussies make the right choice for their rig. A particular problem amongst new, and even seasoned caravaners is unintentionally overloading their rigs. This poses a major safety risk, can void insurance pay outs, and is an offence with […]

  • Destinations

Touring the Calanques of Marseille by boat

Marseille, one of the highlights of France’s stunning Mediterranean coastline, beckons travellers with ancient charm, lively markets, and unbeatable summer vibes. It also serves as a gateway to one of southern France’s most stunning natural attractions: the Calanques. For those seeking a serene summer escape, embarking on a day tour of the Calanques offers an […]

  • News

Troy Haas joins The World Travel and Tourism Council

The World Travel & Tourism Council (WTTC) has welcomed Brownell CEO Troy Haas to its distinguished membership, bringing unparalleled expertise in global luxury travel. Founded in 1887, Brownell is North America’s oldest travel agency, rooted in innovation since its inception. What started as a bold venture with 10 intrepid travellers aboard the SS Devonia to Switzerland, has […]