Description of Conduct
On 7 November 2022, Qantas Airways Limited (Qantas) and Emirates (together, the Applicants) sought revocation of authorisation AA1000400 and substitution of new authorisation AA1000625 (re-authorisation) to enable them and their related bodies corporate to continue to coordinate their operations under a Restated Master Coordination Agreement (Restated MCA) until at least 31 March 2028. The Applicants were previously granted authorisation AA1000400 on 23 March 2018 to engage in similar conduct for a period of 5 years, subject to a condition.
Under the Restated MCA, the Applicants would continue to cooperate for a further period of 5 years across their global networks, including in relation to:
- planning, scheduling, operating and capacity
- sales, marketing, advertising, promotion, distribution strategies, reservation priority and pricing (including fares, rebates, incentives and discounts) for passengers, freight customers and agents
- connectivity and integration of certain routes with the objective of offering customers a global network using Qantas and Emirates' networks
- codeshare and interline arrangements for passenger services and cargo on passenger flight services
- control of inventories and yield management functions
- frequent flyer programs with the objective of optimising earning and redemption opportunities for customers
- all passenger-related aspects to provide a superior, consistent level of service to customers including ground services and lounge access
- harmonising service and product standards in order to provide a seamless product to passengers
- harmonising IT systems
- joint airport facilities
- joint offices for sales activities
- potentially other aspects of operations including ground handling, carriage of cargo on dedicated freighter flight services, engineering services, joint procurement and flight operations
- where appropriate and mutually agreed, making joint submissions to authorities on operational matters, and
- services and activities that are required to facilitate any of the matters referred to above.
On 23 March 2023, the ACCC granted interim authorisation with a condition to allow the Applicants and their bodies corporates to continue their coordination while the ACCC considered their substantive application.
On 22 June 2023, the ACCC issued a draft determination proposing to grant authorisation for 5 years until 2028 with a condition.
On 17 August 2023, the ACCC issued a final determination deciding to grant authorisation for 5 years, until 8 September 2028 with a condition.
Copies of the ACCC’s final determination, draft determination and interim authorisation decision and the application for re-authorisation are available below.
- Qantas Airways Limited