Virgin angry at ACCC over JSA decision
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Virgin angry at ACCC over JSA decision
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Virgin angry at ACCC over JSA decision
Virgin Atlantic has attacked the ACCC’s “perverse” decision to renew the joint services agreement (JSA) between Qantas and British Airways for another five years and vowed to challenge the move.
The airline, which will being flying to Sydney from London via Hong Kong on December 8, said it was “both surprised and dismayed” at the decision.
"BA and Qantas serve only their own interests and not those of consumers when they collude to set fares and schedules,” the UK-based carrier said in a statement.
The ACCC said it allowed the five-year extension of the JSA because it felt there was sufficient competition.
Introduced in 1995, the agreement allows the two carriers to work together when setting airfare prices and planning schedules on routes between Australia and Europe via Southeast Asia.
The ACCC said the JSA was less detrimental to competition than the alliance Qantas was trying to forge with Air New Zealand.
“The ACCC rejected that alliance because the airlines jointly held a 90 per cent share of the trans-Tasman market and it could not rely on a competitive constraint from a Virgin Blue subsidiary - which had not even entered the market – and fifth freedom carriers which held a minor market share,” ACCC chairman Graeme Samuel said in a statement.
But the commission said that under the JSA there had been strong price competition on the Kangaroo route and it was satisfied that would continue.
The ACCC said Qantas and BA together held 40 per cent market share for travel between Australia and Europe and 30 per cent for travel between Australia and Southeast Asia.
“While Qantas and BA sought indefinite authorisation of their alliance…the ACCC proposed that authorisation be limited to five years,” Samuel said.
24 August 2004
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Virgin angry at ACCC over JSA decision
Virgin Atlantic has attacked the ACCC’s “perverse” decision to renew the joint services agreement (JSA) between Qantas and British Airways for another five years and vowed to challenge the move.
The airline, which will being flying to Sydney from London via Hong Kong on December 8, said it was “both surprised and dismayed” at the decision.
"BA and Qantas serve only their own interests and not those of consumers when they collude to set fares and schedules,” the UK-based carrier said in a statement.
The ACCC said it allowed the five-year extension of the JSA because it felt there was sufficient competition.
Introduced in 1995, the agreement allows the two carriers to work together when setting airfare prices and planning schedules on routes between Australia and Europe via Southeast Asia.
The ACCC said the JSA was less detrimental to competition than the alliance Qantas was trying to forge with Air New Zealand.
“The ACCC rejected that alliance because the airlines jointly held a 90 per cent share of the trans-Tasman market and it could not rely on a competitive constraint from a Virgin Blue subsidiary - which had not even entered the market – and fifth freedom carriers which held a minor market share,” ACCC chairman Graeme Samuel said in a statement.
But the commission said that under the JSA there had been strong price competition on the Kangaroo route and it was satisfied that would continue.
The ACCC said Qantas and BA together held 40 per cent market share for travel between Australia and Europe and 30 per cent for travel between Australia and Southeast Asia.
“While Qantas and BA sought indefinite authorisation of their alliance…the ACCC proposed that authorisation be limited to five years,” Samuel said.
24 August 2004
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