Japan link in doubt
AN interim decision by the Australian consumer regulator has cast a shadow over the future of a game-changing air link connecting Cairns and Tokyo.
In March a joint venture between Qantas and Japan Airlines proposed a tri-weekly service aboard a flying kangaroo Airbus A330 after the relaxing of international travel restrictions.
However, the ACCC is proposing to reject the new route.
AN interim decision by the Australian consumer regulator has cast a shadow over the future of a game-changing air link connecting Cairns and Tokyo.
In March, a joint venture between Qantas and Japan Airlines proposed a tri-weekly service aboard a flying kangaroo Airbus A330 after the relaxing of international travel restrictions.
However, the ACCC is proposing to reject the new route.
ACCC chairman Rod Sims said the joint business agreement was in breach of competition laws.
“The ACCC can only authorise these agreements if the public benefits from the co-ordination outweigh the harm to competition,” he said.
“At this stage we do not consider that Qantas and Japan Airlines’ proposal passes that test.”
Mr Sims said the elimination of competition between rival companies before the pandemic would be at the expense of travellers between Australia and Japan.
A Qantas Group spokesman said the company was “disappointed” by the draft decision and at odds with the ACCC’s reduced competition analysis.
“Some of the specific benefits include better co-ordination of flights between Qantas and JAL so people have more choice, more options for frequent flyers, joint tourism marketing and the return of direct Qantas flights between Cairns and Japan,” he said “It’s our job to convince the ACCC of the merits of this partnership ahead of their final determination.”
In the meantime, in a coup for the local aircraft industry, an in-principle agreement was reached between the state and Qantas to create 100 full-time maintenance jobs to be shared between Cairns, Townsville and Brisbane.
Details of how the jobs would be divided and which aircraft would be serviced have not been disclosed but in Cairns contracts would be with an existing supplier.
Cairns Aviation Skills Centre business manager Chris Pigott was buoyed by Thursday’s announcement by Treasurer Cameron Dick.
“At our training facility we are graduating aircraft engineers, so if you have local Cairns-based people like my students here and there is an opportunity to get a job with Qantas, I think that’s a fantastic thing,” he said. “It’s good news, any Qantas jobs in Cairns is fantastic news and very welcome.”
Cairns Airport head of aviation Gary Porter said maintenance was discussed with Qantas CEO Alan Joyce during his recent visit to Cairns. “We welcome any opportunities that arise for maintenance repair and operations in Cairns,” he said.