Australia: ACCC slammed over decision to block Qantas-China Eastern link

Pressure is building on the competition regulator to drop its opposition to a deeper alliance between Qantas and China Eastern after a peak tourism and transport lobby group and the long-haul pilots’ union labelled its stance on the case “somewhat unbalanced” and counter to moves to boost trade with China.

The Australian Competition and Consumer Commission has signalled it will block the alliance because of concerns it will give the two airlines more than 80 per cent of the direct capacity between Sydney and Shanghai.

However, the Australian and International Pilots Association has joined a growing list of government, tourism and transport bodies in telling the regulator it “leans far too heavily on what is ‘possible’ rather than what is actually ‘likely’ “.

The union said the regulator could impose conditions on the airlines on the Sydney-Shanghai route to act as a deterrent to monopolistic behaviour instead of rejecting the deal outright.

The ACCC has extended the deadline for a decision on the Qantas-China Eastern alliance until August 31.

Full Content: The Australian

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