The ACCC has granted authorisation for Qantas Airways Ltd, Emirates and their related entities (including Jetstar) to continue coordinating their passenger and cargo transport operations across their networks until 2028.
These networks cover routes between Australia and the UK/Europe, New Zealand, Asia, the Middle East and North Africa.
“We think this continual coordination will benefit travellers by facilitating connectivity between a wide range of destinations as well as optimising earning and redemption opportunities from their respective loyalty rewards programs,” ACCC Commissioner Anna Brakey said.
However, the ACCC is concerned that the coordination between Qantas and Emirates could impact competition on the Sydney to Christchurch route as Air New Zealand is the only other airline operating that route.
“We have granted authorisation with a condition that Qantas and Emirates must provide regular updates on passenger revenue and operating costs to enable us to monitor competition on this route over the next five years,” Ms Brakey said.
Further information, including the application and the ACCC’s final determination can be found at Qantas Airways Limited and Emirates.
Background
The ACCC previously authorised this alliance in 2013 and 2018 with conditions. The 2018 authorisation was due to expire on 31 March 2023.
On 23 March 2023, the ACCC granted interim authorisation to enable Qantas Airways Ltd, Emirates and their related entities (including Jetstar) to continue coordinating their operations while the ACCC assesses their substantive application for re-authorisation.
On 22 June 2022, the ACCC issued a draft determination proposing to grant re-authorisation for 5 years until 2028 with a proposed condition that requires the Qantas Group and Emirates to report data to the ACCC relating to their operation of services on the Sydney-Christchurch route every 6 months over the authorisation period. A copy of that determination is available on the ACCC public register at: Qantas Airways Ltd and Emirates.
Notes to editors
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Broadly, the ACCC may grant authorisation when it is satisfied that the likely public benefit from the conduct outweighs any likely public detriment.