Qantas and Emirates withdraw application for interim authorisation

The ACCC notes that Qantas and Emirates have withdrawn their application to the Australian Competition and Consumer Commission for interim authorisation to plan and negotiate their proposed alliance.

“The ACCC is continuing to examine the airlines’ substantive application for authorisation, and the decision to withdraw the interim application has no impact on that broader assessment” ACCC Chairman Rod Sims said.

“The ACCC also notes that Qantas and Emirates believe that they are able to undertake a significant amount of preparatory work without the need for interim authorisation.”

On 7 September 2012 Qantas and Emirates applied for authorisation to coordinate their operations pursuant to a Master Coordination Agreement. Under the agreement Qantas and Emirates will cooperate, for an initial period of ten years, on passenger and freight operations.

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

The ACCC expects to release a draft determination in December 2012.

The ACCC expects to release a final decision in March 2013.