Aussie competition body shifts stance
Print Edition
AUSTRALIA’S competition watchdog yesterday reversed a draft decision against a joint venture between Qantas and China Eastern, giving the carriers the green light to coordinate pricing and scheduling.
The Australian Competition and Consumer Commission said in March the original proposal between the airlines would harm competition.
But the ACCC said yesterday that China Eastern had since agreed to raise the frequencies of its services between Australia and China and launch a new route if the deal was allowed.
The two airlines will also expand the destinations under their existing codeshare pact as they seek a gateway through China Eastern’s Shanghai hub for connecting services between the countries.
“The ACCC considers that the addition of a significant number of new services and expanded range of destinations, reflecting this gateway strategy, would constitute a significant public benefit,” ACCC Chairman Rod Sims said.
The nod requires the airlines to grow their capacity between Australia and Shanghai by 21 percent over five years.
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