Australia rejects JV between Qantas and Japan Airlines

The Australian Competition and Consumer Commission (ACCC) blocked a proposed joint venture between Qantas and Japan Airlines, saying the deal was “not in the public interest”.

The two carriers announced plans for routes between Japan and Australia / New Zealand in December 2020.

But the ACCC rejected the deal, saying it would “lead to less competition in resuming international travel and harm travelers traveling between Australia and Japan”.

ACCC President Rod Sims said the agreement between the ACCC competitors could only be approved if it was believed that the public benefit outweighed the competition damage. “This is not the case.”

“Airlines have been hit hard by the epidemic, and it’s a very difficult time for them.

The ACCC decided that granting the permit would “not only eliminate competition between Qantas and Japan Airlines, but also make it more difficult for other airlines to operate on routes between Australia and Japan.”

For its part, Qantas said the move was disappointing. Flight Officer Andrew David said:

“The close partnership between Qantas and Japan Airlines will have more routes, better air links and more benefits for frequent flyers. None of these benefits will be realized after the end of the ACC. We know that the recovery in international travel will be slow and flat. Yes, so it will be very important to get the parameters right as the main routes will be newly built. , Planned flights between Cairns and Tokyo are not commercially viable for Qantas.
We explained this dynamic to the ACCC in detail and we do not agree with their assessment that the road is possible without an alliance.