Emirates and Qantas have been allowed by Australian competitor regulators to start preparing for an alliance - but not on the Tasman. Photo / NZ Herald
Emirates and Qantas have won approval for a global alliance with the condition they retain existing services across the Tasman.
The Australian Competition and Consumer Commission says the alliance is likely to result in public benefits through enhanced products and services by the airlines, and improved operating efficiencies.
"The alliance
is likely to provide Qantas and Emirates customers with increased access to a large number of existing frequencies and destinations under a single airline code, improved connectivity and scheduling, and access to each alliance partner's frequent flyer programs. The alliance is also likely to provide the airlines with increased flexibility to manage their fleet."
The commission said where there was overlap of services in other parts of the world there were competitive pressure to ensure the impact on fares and freight rates was minimal.
"The one exception is the transtasman where Qantas and Emirates compete on four routes which accounted for around 65 per cent of total passenger capacity between Australia and New Zealand. On these routes, the ACCC is concerned that Qantas and Emirates will have the ability and incentive to reduce or limit growth in capacity in order to raise airfares," said commission chairman Rod Sims.
