ACCC proposes to re-authorise Qantas-American Airlines alliance

27 November, 2015

Australian Competition and Consumer Commission issued (27-Nov-2015) a draft determination proposing to re-authorise Qantas and American Airlines to continue to coordinate their operations on trans-Pacific routes for a further five years. Under the alliance, the airlines propose to continue coordination in respect of marketing and sales, freight, pricing, scheduling, distribution strategies including agency arrangements, yield and inventory management, frequent flyer programs, lounges, joint procurement, and product and service standards. ACCC Commissioner Dr Jill Walker said: "The ACCC considers this alliance would be likely to result in continued public benefits for passengers travelling between Australia and the US through enhanced products and services including new frequencies and destinations, more online connections, better scheduling, greater loyalty programme benefits and improved lounge access... The alliance is also likely to promote competition between other airlines that provide services on trans-Pacific routes. The ACCC considers that the alliance is unlikely to result in any significant public detriment, largely because the ACCC accepts that American Airlines would be unlikely to introduce its own trans-Pacific services in the absence of its alliance with Qantas". [more - original PR]