The Australian Competition and Consumer Commission has granted interim authorisation to Etihad Airways and Air Berlin to engage in joint pricing, scheduling and marketing of air passenger services between Germany and Australia.
Etihad and Air Berlin propose coordinating international air travel services between Germany and Australia via Abu Dhabi. The airlines have commenced codeshare operations for Air Berlin passengers flying from points in Germany through Abu Dhabi and into Australia.
Etihad and Air Berlin have applied for authorisation which provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.
“The ACCC has taken into account that granting of interim authorisation for the alliance is unlikely to result in permanent changes to the relevant markets and will provide an opportunity to deliver benefits to the public,” ACCC Chairman Rod Sims said.
The ACCC considers it reasonable for the applicants to begin marketing the alliance and have the opportunity to deliver the claimed public benefits.
Interim authorisation commences immediately and will remain in place until the ACCC's final determination comes into effect or is revoked. The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation.
The ACCC has invited submissions from interested parties on the substantive application for authorisation. Those submissions close on 24 May 2012. The ACCC will then proceed to publish its draft determination.