News
ACCC signals green light for Qantas-Emirates partnership reauthorization
February 23rd 2018
The Australian Competition and Consumer Commission (ACCC) has given interim approval to the renewal of the partnership between Qantas Airways and Emirates Airline for another five years, albeit with some conditions revised. Read More »
“The ACCC considers that the alliance is likely to continue to result in a range of public benefits,” said ACCC commissioner, Roger Featherston. “Combining the networks of Qantas and Emirates provides customers with access to more flights and destinations under a single airline code and improves connectivity. However, the ACCC is concerned that the alliance is likely to significantly impact competition on one route, Sydney Kingsford Smith to Christchurch; Qantas and Emirates are the two major operators on this route and their only competition is from the Virgin Australia and Air New Zealand alliance.”
To alleviate these concerns, Qantas and Emirates have agreed to provide more regular pricing, load factor and profitability reports to the commission.
In October, Emirates said it would drop its flights from both Melbourne and Brisbane to Auckland from March, while Qantas will add daily services between Melbourne and Auckland and an extra two return flights a week between Brisbane and Auckland. Emirates will retain its daily Dubai-Sydney-Christchurch A380 flights.
“The ACCC’s draft determination is an important step in helping us deliver a better travel experience and more options between Australia, the UK and Europe for millions of customers. The first five years of the partnership has lived up to the promise of serving our customers better, together, and the changes to our network are designed to reinforce this for the next five years,” Qantas said in response to the ACCC’s draft renewal approval.
A final decision is expected in March.
In related news, Emirates this week announced a new Dubai-Bali-Auckland B777-300ER route from June 14.
The Dubai-based carrier currently serves Bali twice daily in the northern summer season and once daily flight during the winter. From June, it will add an additional daily rotation in each season. Rival Qatar Airways flies three times a day between its Doha hub and Bali.
Emirates’ Bali-Auckland flight will be the only year-round service on that route; Air New Zealand operates a seasonal B787-9 from April through to October.
