BP, QF early ACCC tick?

QANTAS and multinational oil and gas company BP have requested interim authorisation of the proposed “BP Rewards” loyalty program (TD 04 Sep), which will allow Qantas Frequent Flyers and Qantas Business Rewards members to earn points on fuel purchases.

The Australian Competition and Consumer Commission (ACCC) has launched a formal consultation into the deal, which BP aims to have up and running by 01 Feb, ahead of the normal six-month statutory process.

BP is seeking authorisation for a range of aspects of the commercial arrangements, including co-ordination between itself and Qantas in respect of the rate at which BP or Qantas points may be directly earned and allocated to members.

Benefits cited in the formal application include “the establishment of a new-entrant loyalty program,” along with enhanced competition, more consistent customer and business offerings and increase competition in the retail fuel and convenience markets.

“It is proposed that BP and BP resellers will cease their participation in the Velocity Program as a result of BP implementing and appointing Qantas as a cornerstone partner of, the BP Rewards Program,” the application notes, with significant portions blacked out due to containing confidential and commercially sensitive details.

Submissions are now being sought from stakeholders on the “likely public benefits and effect on competition, or any other public detriment, from the proposed arrangements”.

Feedback must be provided by 30 Sep, with a draft determination and decision on interim authorisation due by Nov.