The Australian Competition and Consumer Commission’s (ACCCs) has granted an interim authorization to the Emirates Airline for its proposed partnership with Qantas. However, a final verdict regarding this matter is expected to be announced in March.
The proposed alliance is expected to increase the level of services available to the passengers of both Qantas and Emirates Airline. The ACCC has also placed some conditions on routes between Australia and New Zealand to maintain competition. The alliance would also allow Qantas Airways to make Dubai the new hub for European flights and focus on profitable domestic and budget operations.
In an officially issued statement, the ACCC has said that the two carriers are being allowed to go ahead with the proposed alliance because of the long lead time required to market and sell tickets before the commencement of long-haul services. The decision was made after the committee thoroughly reviewed benefits of the alliance to passengers and its implications for competitors in the industry. The ACCC believes that the alliance would not create industry domination and customers would still be able to choose from offerings of other competitor carriers.
Commenting on the announcement, Tim Clark, President of Emirates Airline, stated that, “the interim approval clears the way for Emirates and Qantas to be geared up to provide customers with a unified experience from day one. The Emirates and Qantas partnership will provide customers unparalleled access to the respective networks and services including the A380 experience.”
The alliance would allow the two airlines to join hands and cooperate on passenger and freight operations across their networks. Before implementing the partnership, both airlines are expected to undertake certain preliminary steps to complete preparations by April. However, the ACCC has clearly stated that it reserves the right to review the interim authorization at any time. Further, the interim authorization does not indicate a final go ahead on the matter.