Was today's ACCC announcement not well received??
ACCC GRANTS INTERIM APPROVAL TO QANTAS AND AMERICAN
AIRLINES JOINT BUSINESS AGREEMENT
The Australian Competition and Consumer Commission has granted interim
authorisation for a proposed Joint Business Agreement (JBA) between Qantas and
American Airlines.
Under the proposed JBA, the airlines will coordinate operations on services between
Australia/New Zealand and the United States (the trans-Pacific routes), and on their
respective services which support the trans-Pacific routes. Qantas and American
Airlines do not currently compete directly on any routes.
Interim authorisation will enable the parties to undertake a coordinated sales and
marketing campaign in both Australia and the United States. Qantas recently
commenced services to Dallas/Fort Worth and has sought interim authorisation to
support this service. The granting of interim authorisation in no way binds the ACCC
in its consideration of the substantive application for authorisation.
Authorisation provides immunity from court action for conduct that might otherwise
raise concerns under the competition provisions of the Competition and Consumer
Act 2010.
Broadly, the ACCC may grant an authorisation when it is satisfied that the public
benefit from the conduct outweighs any public detriment. The ACCC has sought
submissions from interested parties on Qantas and American Airlines' substantive
application for authorisation. A draft decision on the substantive application will be
issued in August/September.