The Australian Competition and Consumer Commission has issued a draft determination proposing to grant authorisation* to the Star Alliance for its Corporate Plus and Conventions Plus programs, ACCC Chairman, Mr Graeme Samuel, said today.
The Corporate Plus and Conventions Plus programs enable the member carriers to make joint bids to potential corporate clients and convention organisers, offering discounts and incentives across the members' combined network, although the arrangements are voluntary for both Star Alliance members and their potential customers.
In 2003, the ACCC granted authorisation to these programs for a period of four years. The Star Alliance is now seeking to continue the protection for a further five years.
The ACCC is satisfied that the proposed arrangements are likely to result in a net benefit to the public. In particular, the ACCC considers that there is benefit to the public as a result of the potential for lower fares, increased competition and cost savings.
The ACCC also considers that any detriment to the public as a result of these arrangements will be limited. In particular, the networks of the Star Alliance members are largely complementary, there will remain a high level of competition from other carriers and members do not agree on the underlying fares."
The ACCC's draft determination will be available from the ACCC website.
The ACCC is seeking submissions from interested parties in relation to its draft determination. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, Dickson, ACT, 2602. Submissions can also be lodged by fax on (02) 6243 1121 or by email to: adjudication@accc.gov.au.