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Regulator moves to block Qantas Shanghai flights coordination
Qantas has yet another setback to contend with.
The competition watchdog intends to block an extension of the joint coordination agreement between Qantas and China Eastern Airlines.
The Australian Competition and Consumer Commission (ACCC) issued a draft decision to deny the tie-up.
The two airlines are seeking to coordinate operations on Australia-China routes.
“At this stage we are not satisfied that the likely harm to competition would be outweighed by any potential benefits,” ACCC commissioner Anna Brakey said.
The ACCC is concerned there would be an ‘incentive to increase prices.’
The competition watchdog sees a likelihood of this on the Sydney to Shanghai flights.
China Eastern is currently the only airline offering flights to Sydney from Shanghai.
Qantas plans to restart Shanghai flights in late October.
The ACCC says a factor in blocking it is because the airlines have not given assurances they plan to boost Australia-China flights as the joint coordination agreement request is only until March 2024.
The two airlines first started collaborating in 2015.
“Millions of customers have benefited from the coordination on flight schedules, loyalty programs and streamlined connections,” Qantas said.
“The flow-on benefits for tourism have also been significant.”
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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