Qantas/American business agreement gets initial approval

The Australian Competition and Consumer Commission has issued a draft decision proposing to grant authorisation for a Joint Business Agreement (JBA) between Qantas and American Airlines.

      

Under the JBA, the airlines will coordinate operations on services between Australia/New Zealand and the United States (the trans-Pacific routes), and on their respective services which support the trans-Pacific routes.

    

"The ACCC considers that the JBA is likely to result in new and improved products and services, including improved schedules and connectivity," ACCC chairman Rod Sims said.

    

"The ACCC does not consider that the JBA will have any anti-competitive effects, as Qantas and American Airlines do not currently provide any overlapping direct services between Australia and the United States."

    

The ACCC had previously authorised an alliance between Virgin Australia and Delta Airlines on routes between Australia and the United States.

    

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. The ACCC may grant an authorisation when it is satisfied that the public benefit outweighs any public detriment.

    

The ACCC is now seeking submissions from the applicants and other interested parties prior to making a final decision.