ACCC revokes Qantas authorisation to negotiate air tariffs

The Australian Competition and Consumer Commission has decided to revoke the authorisation* granted to Qantas Airlines Limited wholly owned subsidiary Australia Asia Airlines in May 1992 by the Trade Practices Commission**.

The original authorisation allowed AAA to negotiate tariffs with China Airlines Limited on flights between Australia and Taiwan outside the International Air Transport Association.

On 22 June 2007, Qantas applied to revoke authorisation A90525 on the basis that Qantas no longer operates flights to Taiwan, either under AAA or any other subsidiary.

AAA no longer exists as an operating company and as such it is not possible for any agreement made under this authorisation to take effect.

The ACCC has decided to revoke the authorisation on the grounds that Qantas no longer operates flights to Taiwan and that AAA no longer operates as a company, and as such the authorisation is no longer required.

Background

* Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.  Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.

**The Trade Practices Commission is now the ACCC.