Australia’s competition watchdog has knocked back the Qantas and Japan Airlines proposed joint business agreement.
Australian Competition and Consumer Commission (ACCC) chairman Rod Sims said the airlines did not satisfy the ACCC that the consumer benefits outweigh the potential harm due to less competition.
"Preserving competition between airlines is the key to the long-term recovery of the aviation and tourism sectors, once international travel restrictions are eased," Sims said.
"Virgin Australia told the ACCC that it would be more difficult to enter the Australia-Japan route if it is required to compete with Qantas and Japan Airlines acting jointly rather than as individual competing airlines."
The only other airline in the market is Japan’s ANA.
The airlines both expressed disappointment but would continue their existing codeshare partnership.
They are both oneworld alliance airlines.
