‘No reason’ to block airline alliance
Print Edition
THE Australian government “sees no reason” why the proposed alliance between China Eastern Airlines and Australian carrier Qantas should be stopped after slamming its competition regulator for blocking the move, local media said yesterday.
The Australian Competition and Consumer Commission hinted last month it would not approve the plans by saying in a draft decision the alliance would give China Eastern and Qantas “an increased ability and incentive to limit capacity and/or increase airfares” on the Sydney-Shanghai route.
In a submission to the ACCC following the draft ruling, the Department of Infrastructure and Regional Development said the proposed alliance was “positive for the Australian economy and is consistent with the Australian government’s aviation policy settings.”
In its April 8 submission, the department said the ACCC had “too narrowly focused on the Sydney-Shanghai route rather than at the operations of the wider Australia-China market.”
“The department sees no reason to deny the proposed coordination agreement.”
“The benefits that will flow to Australia’s aviation industry, Australian consumers, the Australian tourism industry, and the Australian economy ... are exactly the benefits the Australian government’s aviation policy is designed to support.”
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