Qantas – China Eastern Airlines alliance extension approved
Australia’s competition regulator has granted an extension of the Qantas – China Eastern Airlines joint coordination agreement.
It has been granted until 31 March 2023.
The Australian Competition & Consumer Commission noted that there is a ‘significant public detriment’ on the Sydney-Shanghai route due to the joint coordination agreement being extended because of a lack of completion.
However, the ACCC belives this is unlikely in practice due to the current state of global air travel due to the pandemic.
"The ACCC notes that current demand for flights between Australia and China is low, and there is uncertainty about the extent and timing of a recovery in demand that is likely to occur," it said.
"It is not apparent that if Qantas and China Eastern were operating independently of each other, there would be sufficient recovery in demand to fuel a strong return to the route for both airlines in the short term."
"The ACCC considers that the extended JCA will assist Qantas and China Eastern in reinstating services as demand picks up," it added.
The ACCC had granted an interim authorisation in September last year for Qantas and China Eastern to extend the JCA.
The airlines had initially sought an extension until 2022 but the ACC expanded this until early 2023 because it will ‘likely take longer than originally anticipated for opportunities for travel between Australia and China to return to their pre-pandemic state.’
The airlines fist began cooperating on Australia-China routes back in 2015.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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