ACCC sets deadline for tie-up decision

D-DAY for Qantas in its attempt to cement its proposed union with Emirates will be December 20.

By InvestSMART · 10 Dec 2012

By InvestSMART ·
10 Dec 2012

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D-DAY for Qantas in its attempt to cement its proposed union with Emirates will be December 20.

That is when the Australian Competition and Consumer Commission will release its draft decision on the planned alliance between the airlines.

While not the final judgment, the so-called draft determination will give a clear idea of the competition regulator's position on the proposed tie-up.

The duo wants to co-operate on passenger and freight operations on routes from Australia to Europe, North Africa, the Middle East, Asia and New Zealand.

The chairman of the ACCC, Rod Sims, said its officials were still in the process of writing what would be a long draft decision.

Although there was a slim chance it would be released earlier, Mr Sims said the date set for making the decision public was December 20. "It may not be possible to bring it forward - we have to get this thing right," he said.

Other airlines, including Virgin Australia, have raised concerns about parts of the deal, but federal and state governments, Australian airports and tourism leaders have been overwhelmingly supportive.

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Frequently Asked Questions about this Article…

When will the ACCC release its draft decision on the Qantas and Emirates alliance?

The Australian Competition and Consumer Commission (ACCC) is scheduled to release its draft decision on the proposed Qantas–Emirates alliance on December 20. The ACCC chair said officials were still preparing a long draft and that the date may not be brought forward.

What does a draft determination from the ACCC mean for the proposed Qantas–Emirates tie-up?

A draft determination is not the final judgment, but it gives a clear idea of the competition regulator's position on the proposed tie‑up between Qantas and Emirates. It outlines the ACCC's initial findings and signals potential concerns or likely conditions.

Which routes would the Qantas and Emirates partnership cover?

The proposed cooperation would cover passenger and freight operations on routes from Australia to Europe, North Africa, the Middle East, Asia and New Zealand, according to the announcement about the alliance.

Who at the ACCC is overseeing the draft decision on the Qantas‑Emirates deal?

ACCC chairman Rod Sims said the regulator's officials were still in the process of writing the long draft decision and emphasised they need to get it right before releasing it.

Have other airlines raised objections to the Qantas–Emirates deal?

Yes. Other airlines, including Virgin Australia, have raised concerns about parts of the proposed deal, according to the article.

Which stakeholders have publicly supported the Qantas and Emirates alliance?

Federal and state governments, Australian airports and tourism leaders have been overwhelmingly supportive of the proposed Qantas–Emirates cooperation, as reported in the article.

Is it possible the ACCC will publish the draft decision before December 20?

The ACCC chair said there was only a slim chance the draft could be released earlier and noted the regulator may not be able to bring the date forward because they have to get the decision right.

What should everyday investors look for when the ACCC releases its draft decision on the Qantas–Emirates alliance?

When the ACCC publishes its draft determination, investors should read the document for the regulator's position on competition issues in the proposed tie‑up—this draft gives a clear indication of where the ACCC stands, even though it is not the final ruling.