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ACCC authorises Qantas and American Airlines joint business agreement

Direct News Source

29-Sep-2011 The Australian Competition and Consumer Commission has granted authorisation for a Joint Business Agreement (JBA) between Qantas and American Airlines.

The airlines will coordinate operations on services between Australia/New Zealand and the United States and on their respective services which support these trans-Pacific routes.

"The ACCC does not consider that the JBA will have any anti-competitive effects, as Qantas and American Airlines do not currently provide any overlapping direct services on the trans-Pacific routes," ACCC chairman Rod Sims said.

"This JBA is likely to result in new and improved products and services which will benefit passengers, including improved schedules and connectivity."

The ACCC has previously authorised an alliance between Virgin Australia and Delta Airlines on trans-Pacific routes.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

The ACCC's determination is available from the ACCC's public register at www.accc.gov.au/AuthorisationsRegister