Qantas-China Eastern tie-up finally approved
Australia’s competition watchdog has finally given the go-ahead to Qantas’ proposed joint venture with China Eastern.
This effectively reverses an earlier statement that the tie-up would be harmful to consumers.
The change of heart stems from assurances from China Eastern that it would increase frequencies between Australia and China and launch a new route.
"The ACCC considers that the addition of a significant number of new services and expanded range of destinations, reflecting this gateway strategy, would constitute a significant public benefit," said ACCC chairman Rod Sims.
The ruling calls for both carriers to increase capacity on current routes between Australia and Shanghai by at least 21% over the five-year term the joint venture has been authorised for.
The two airlines have an existing code share agreement for 17 weekly flights between Australia and mainland China, along with domestic destinations in both countries.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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