The Australian Competition and Consumer Commission has authorised* the implementation in Australia of two programs offered by the Star Alliance, including Air New Zealand Limited, to its corporate customers and conventions clientele, ACCC Chairman, Mr Graeme Samuel, announced today.
The programs are known as the Star Joint Corporate Agreement and the Star Alliance Conventions Plus Program. Under the programs Star Alliance airlines will offer discounted airfares to business travellers and convention delegates.
Participation in the programs by Star Alliance airlines, corporate travellers and conventions delegates is voluntary.
"The programs will increase the range of airfares available to corporate travellers and convention delegates, particularly for those travellers who would otherwise not have access to a discounted airfare", Mr Samuel said.
In reaching its decision, the ACCC was mindful that a Star Alliance carrier does not currently operate in the Australian domestic market.
In order to satisfy the ACCC that the two programs will result in a net public benefit, Air New Zealand has undertaken that it will cease participation in the Star Joint Corporate Agreement and the Star Alliance Conventions Plus Program should it enter into an alliance with Qantas of the type currently being considered by the ACCC.
Star Alliance applied for authorisation of the programs because it was concerned that certain aspects of the programs, including the requirement that airlines agree on the discounts to be offered, may breach the competition provisions of the Trade Practices Act 1974.