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Regulator plans to reject extension of Qantas-China Eastern Airlines alliance
September 18th 2023
Australia's competition regulator intends to deny a request from Qantas and China Eastern Airlines (CEA) to extend their alliance on Australia-China routes. Read More » The draft determination announced by the Australian Competition and Consumer Commission (ACCC) was more bad news for the flag carrier. In a horrendous few weeks, group CEO, Alan Joyce, retired two months early due to fierce criticism of his leadership and Australia's highest court dismissed the company’s appeal against a ruling that it illegally outsourced 1,700 ground handling positions. The airline group also is being taken to court for allegedly selling tickets for flights it had cancelled. The ACCC said it was not satisfied the likely harm to competition from Qantas and CEA's proposed coordination would be outweighed by any potential benefits. “We are concerned the authorisation will provide Qantas and China Eastern with the opportunity and incentive to increase prices compared with what they would charge absent the alliance by limiting or delaying the introduction of additional capacity on the Sydney-Shanghai route as passenger demand continues to grow,” ACCC Commissioner, Anna Brakey, said. “A key difference between now and the previous authorisations is we have not been provided with sufficient evidence the coordination will lead to additional services on other routes between Australia and China.” CEA is the only airline flying Sydney-Shanghai Pudong. Qantas is expected to resume operating between the two cities next month.
