Australian regulator okays Emirates-Qantas proposed operational alliance

THE Australian Competition and Consumer Commission (ACCC) has approved a freight and passenger alliance between Emirates Airlines and Qantas Airways for a five-year period because of its benefits to Australian consumers.

ACCC chairman Rod Sims said the alliance will provide an improved product and service to customers and "likely to result in material, although not substantial, benefits to Australian consumers".

It approved the draft agreement, subject to conditions, despite a slight reduction in offerings from both airlines on routes it currently competes with because of the number of alternative operators on routes it found the decrease to be negligible.

The ACCC decision to half the review of the deal from the 10 years requested by the airlines is down to issues over rates between Australia and New Zealand. Final decisions on limiting the alliance on this route are yet to be firmed up following feedback from carriers and interested parties.