The Australian Competition and Consumer Commission today issued two separate draft decisions which propose to grant authorisation to an Affiliation Agreement between Emirates and Flydubai, and separately, a Commercial Alliance between Etihad and Air Berlin.
Under the Affiliation Agreement between Emirates and Flydubai, the airlines will coordinate operations on international air passenger transportation services and air cargo transportation services between Australia and Dubai and on 'behind and beyond' Emirates and Flydubai services.
Etihad and Air Berlin in their Commercial Alliance 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.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC granted interim authorisation in both matters on 16 May 2012, allowing Emirates and Flydubai, and separately Etihad and Air Berlin, to begin setting up and implementing the respective agreements.
The ACCC will now invite further submissions from the applicants and interested parties in relation to the draft determinations prior to making final decisions on whether to authorise the conduct. The applicants or interested parties may also request that a conference be held to make oral submissions on the draft determination.
Further information, including the application, public submissions and ACCC decisions can be found on the ACCC's public register at www.accc.gov.au/AuthorisationsRegister.