The Chinese government has urged the competition regulator to take into account wider national interests and dump its opposition to a deeper alliance between Qantas and state-owned China Eastern.
Beijing’s decision to flex its lobbying muscle adds to growing pressure on the Australian Competition and Consumer Commission (ACCC) from government, tourism and transport bodies here to reverse its position.
The competition watchdog signalled in March that 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.
But China’s ambassador to Australia, Ma Zhaoxu, has written to the competition regulator to express his “concern about the ongoing review” of the proposed deeper alliance between Qantas and China Eastern.
In a letter to ACCC chairman Rod Sims, he urged the regulator to “bear in mind the interests of our overall relationship and make a fair and reasonable decision”.
China and Australia signed a free-trade agreement late last year, and in January agreed to triple air capacity between the two countries during the next three years.
China’s ambassador emphasised that the air market between China and Australia was growing at a rapid rate, and the deeper alliance would inject “new momentum into our aviation co-operation by meeting the growing demand for international travel”.
Full content: Australian Aviation
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI