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ACCC mulls not extending Qantas, China Eastern alliance

The Australian Competition and Consumer Commission (ACCC) has indicated that it will not extend a pre-existing joint coordination agreement between Qantas (QF, Sydney Kingsford Smith) and China Eastern Airlines (MU, Shanghai Hongqiao), saying in a September 15 draft determination that the venture's benefits do not outweigh its competitive threats.

The ACCC authorised the alliance for five years in 2015, which allowed the two airlines to cooperate and coordinate their operations on the Australia - China country pair across a range of areas, including but not limited to schedules, frequencies and connection times; expanding connecting services and destinations; developing new fare products and promotions; and allowing reciprocal inventory access and provision of information to agents. In 2021, due to the exceptional circumstances created by Covid-19, the ACCC okayed the agreement continuing for a shorter period, albeit with conditions.

This year, the agreement came up for review again. In March, the ACCC granted the two airlines interim authorisation to continue the alliance while considering their case. Eight passenger airlines are back flying the country pair after...

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