ACCC rejects revised Qantas, Air NZ bid
Qantas has failed in its second attempt to win support from Australia's competition watchdog over its plan for an alliance with Air New Zealand.
The Australian Competition and Consumer Commission (ACCC) has announced it sees no reason to change its original position on the proposed deal.
The ACCC said in April the plan was anti-competitive, would lead to higher prices and reduced services across the trans-Tasman route.
Qantas says it is reviewing the determination to frame an appropriate response.
But it says that might include the possibility of an appeal to the Australian Competition Tribunal.
Qantas wants to buy a 22.5 per cent stake in Air New Zealand, with both airlines saying it will bring cost efficiency during a difficult time in the aviation industry.
New Zealand's competition watchdog had also already rejected the original bid.
The airlines would need the support of both competition regulators for the deal to proceed.
Qantas shares had fallen 12 cents on the Australian Stock Exchange to $3.40 shortly before 11:00am AEST.
That is a decline of almost 3.5 per cent.