ACCC keeps airlines on tenterhooks over alliance

By InvestSMART · 25 Mar 2013

By InvestSMART ·
25 Mar 2013

Comments

Qantas is unlikely to find out whether it has final clearance from the competition regulator for its extensive alliance with Emirates until the middle of this week, just days before it is due to begin.

The airlines plan to launch their tie-up on Sunday but the absence of a final decision from the Australian Competition and Consumer Commission leaves their management teams on tenterhooks. The shifting of Qantas' main overseas hub from Singapore to Emirates' base in Dubai is a highly complex operation.

The deal with the Middle Eastern airline - which is mostly focused on routes to Europe via Dubai - is expected to win final approval but the regulator could impose stiff conditions on code-sharing on flights between Australia and New Zealand.

The ACCC has previously indicated that it will make the pair live up to their promise not to reduce overall capacity on trans-Tasman routes. The airlines also need approval from New Zealand's Transport Minister, Gerry Brownlee, for trans-Tasman flights.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What is the current status of the Qantas–Emirates alliance approval from the ACCC?

The Australian Competition and Consumer Commission (ACCC) has not yet given final clearance. The decision is expected around the middle of the week, shortly before the airlines plan to start the alliance.

When are Qantas and Emirates planning to launch their alliance?

The airlines plan to launch their tie-up on Sunday, although that start date is awaiting the ACCC's final decision.

Why is shifting Qantas’ main overseas hub from Singapore to Dubai described as complex?

Moving Qantas' main overseas hub from Singapore to Emirates' base in Dubai involves major operational changes across routes and services, which the article describes as a highly complex operation.

Could the ACCC impose conditions on the Qantas–Emirates code-sharing agreement?

Yes. The ACCC could impose stiff conditions on code-sharing for flights between Australia and New Zealand as part of its final approval.

Is the Qantas–Emirates deal expected to receive final approval?

The article says the deal is expected to win final approval, but that approval could come with significant conditions from the regulator.

What approvals are needed for trans-Tasman flights under the alliance?

In addition to the ACCC's clearance, the airlines need approval from New Zealand's Transport Minister, Gerry Brownlee, for trans-Tasman flights.

What has the ACCC said about capacity on trans-Tasman routes under the alliance?

The ACCC has indicated it will make Qantas and Emirates live up to their promise not to reduce overall capacity on trans-Tasman routes.

What should everyday investors watch for regarding the Qantas–Emirates alliance?

Investors should watch for the ACCC's midweek decision and any imposed code-sharing conditions, the airlines' planned hub shift to Dubai, and whether New Zealand’s Transport Minister grants trans-Tasman approval—each could affect how the alliance operates.