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Australian regulator blocks proposed Japan Airlines-Qantas joint venture
September 13th 2021
Australia's competition watchdog has rejected a proposed joint venture between Japan Airlines (JAL) and Qantas on flights between Australia, Japan and New Zealand. Read More » It argued the partnership would likely lead to reduced competition, as international travel resumed, to the detriment of passengers. “We accepted there was likely to be some short-term benefits from the alliance being able to jointly reinstate services more quickly when borders are reopened, which may initially stimulate tourism," Australian Competition and Consumer Commission (ACCC) chair, Rod Sims, said. "However, the longer term benefits of competition between airlines are cheaper flights and better services for consumers, which is vital to the recovery of tourism in the coming years." The decision was expected, given the ACCC flagged it would knock back the tie-up in a draft decision in May. Qantas domestic and international CEO, Andrew David, said it was a disappointing decision that would mean a proposed nonstop flight between Cairns and Tokyo would not proceed. JAL executive officer and senior vice president for route marketing, international relations and alliances, Ross Leggett, said it was unfortunate the opportunity to provide enhanced customer choice and extensive travel industry growth opportunities will not be realised.
