News
Australia rejects proposed Garuda Indonesia-Qantas Airways code share
May 1st 2024
A Qantas Airways application to operate a code share between Australia and Indonesia with Garuda Indonesia has been rejected by Australia's International Air Services Commission (IASC). Read More » Last September, Qantas asked the IASC, which manages Australia's traffic rights, to allow Garuda to add its GA airline code on Qantas flights between Australia and Indonesia. The IASC was unconvinced by the claimed benefits of the proposed code share, noting it would likely consolidate the dominant market positions of Qantas and Garuda on Australia-Indonesia routes. “The Commission finds that while it is likely the proposed variations would result in some marginal consumer benefits, including improved single carrier connectivity and schedule options, the commission considers the likely public benefits are limited and are substantially outweighed by the likely public detriment that would follow from the proposed variations,” the IASC said in its decision. “Even though Qantas and Garuda plan to price and sell their services independently, the arrangement may have the effect of reducing the incentive the airlines have to compete with each other.”
