Airlines urge caution on Qantas-Emirates deal
Virgin Australia, Singapore Airlines and Air New Zealand are urging caution in the bid by Qantas to enter an alliance with Emirates.
The three airlines are calling on Australia’s competition watchdog, the ACCC, to take its time scrutinising the QF-EK deal.
Qantas has requested interim authorisation from the regulator, which would allow the deal to go ahead before a full investigation into its impact on competition has taken place.
In a submission to the Australian Competition & Consumer Commission, Virgin Australia said Qantas hasn’t made clear whether the public benefits from the alliance will outweigh any reduction in competition.
The alliance proposal “raises a number of complex issues across many markets, including ones in which the applicants would have a very large combined market share,” Virgin Australia said.
Both Singapore Airlines and Air New Zealand are also urging the ACCC not to give the alliance interim approval.
According to investment bank Macquarie Group, a combined
Qantas and Emirates would have a 42% share of the Kangaroo route between Australia and the U.K. and an even bigger share of the business-class portion.
Ian Jarrett
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