A PYMNTS Company

China/ Australia: Government backs Qantas Airways

By  |  April 13, 2015

Qantas Airways has gained crucial government support for its plans to cement a stronger alliance with China Eastern Airlines, which will be key to helping the airline overcome opposition from the competition regulator to its deal.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

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

    But the Department of Infrastructure and Regional Development has taken the regulator to task over its draft decision last month, claiming it was “too narrowly focused” on the Sydney-Shanghai route instead of the operations of the wider Australia-China market.

    In a strongly worded submission to the ACCC, the department said it “sees no reason to deny” the proposed alliance, pointing out that the advantages that will flow from the deal for travellers and the Australian economy were “exactly the benefits” that the government’s aviation policy was designed to support.

     

    Full Content: The Sydney Morning Herald

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.