05 February 2010

Competition watchdog renews BA-Qantas pact

SYDNEY - The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to grant authorisation of Qantas and British AirwaysÃ¢â¬â¢ Joint Services Agreement for a further five years.

Nicole Backo, BA regional commercial manager SWP, said, Ã¢â¬ÅâœIt is a positive step forward and demonstrates our ongoing commitment to the Australian market.Ã¢â¬~

The JSA allows the parties to coordinate commercial arrangements in providing air transport services, primarily between Australia and Europe. It has been in operation for the past 14 years.

"The ACCC considers the JSA is likely to continue to deliver public benefits in the form of lower fares and broader availability of schedule options for air passengers," ACCC chairman Graeme Samuel said.

"The increasing competition from other carriers means the JSA is unlikely to result in any substantial lessening of competition in the relevant markets," he said.

The ACCC's draft determination will be available from the ACCC website, www.accc.gov.au/AuthorisationsRegister.

The ACCC invites submissions from interested parties by February 25, 2010.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.