ACCC proposes to deny Qantas/Japan Airlines coordination proposal

Australian Competition and Consumer Commission (ACCC) proposed (06-May-2021) to deny authorisation for Qantas and Japan Airlines to coordinate flights between Australia and Japan for three years under a proposed five year joint business agreement. ACCC chair Rod Sims stated: "An agreement for coordination between two key competitors breaches competition laws. The ACCC can only authorise these agreements if the public benefits from the coordination outweigh the harm to competition". Mr Sims added: "At this stage we do not consider that Qantas and Japan Airlines' proposal passes that test". Prior to coronavirus, Qantas and Japan Airlines were the sole carriers offering nonstop services between Melbourne and Tokyo. They were also two of three airlines offering nonstop flights between Sydney and Tokyo. The ACCC considers that Qantas and Japan Airlines combining their operations would also make it more difficult for another airline to seek to launch services on these routes. Mr Sims said there may be short term benefits to the agreement, however the benefits are "outweighed by the severe harm to competition". [more - original PR]