ACCC sees benefit in continued operation of Qantas/British Airways' Joint Services Agreement

The Australian Competition and Consumer Commission today issued a draft determination proposing to grant authorisation of Qantas and British Airways’ Joint Services Agreement for a further five years.

The JSA allows the parties to coordinate commercial arrangements in providing air transport services, primarily between Australia and Europe. It has been in operation for the past 14 years.

"The ACCC considers the JSA is likely to continue to deliver public benefits in the form of lower fares and broader availability of schedule options for air passengers," ACCC chairman Graeme Samuel said.

Strong competition on most routes operated under the JSA means that cost savings arising from the JSA are likely to be passed on to consumers.

"The increasing competition from other carriers means the JSA is unlikely to result in any substantial lessening of competition in the relevant markets," he said.

The ACCC's draft determination will be available from the ACCC website, www.accc.gov.au/AuthorisationsRegister. The ACCC invites submissions from interested parties by 25 February 2010.

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.