QF, EK alliance renewal
QANTAS and Emirates have lodged a joint application with the Australian Competition and Consumer Commission (ACCC), seeking to continue their extensive global cooperation for at least another five years.
The existing approval expires in Mar 2023, with the process of seeking re-authorisation from regulators now underway.
Previously QF and EK were granted approval to engage in the same conduct for a period of five years in both 2013 and then again in 2018, subject to a condition that they report on passenger numbers of certain routes.
They’re seeking to have this condition lifted, and also to receive an interim authorisation so they can “continue to discuss and plan” while the overall application is considered.
The wide-ranging restated Master Coordination Agreement covers sales, marketing, distribution strategies, reservation priority and pricing for passengers, connectivity and integration of certain routes, planning and scheduling, codeshare and interline agreements and control of inventories & yield management.
All passenger-related aspects of customer service including lounge access and ground services, frequent flyer programs and harmonised IT systems are also envisaged, along with joint airport facilities, joint sales offices and potentially even joint procurement.
The carriers said the proposed conduct enables QF and EK to “better connect Australia and New Zealand to Asia, the United Kingdom, Europe and the Middle East and Northern Africa” and thereby offer greater choice and convenience to consumers.
It is “fundamentally procompetitive and will continue to assist both airlines to offer a compelling customer proposition going forward,” they said.
The submission notes a range of benefits, including supporting network rebuilding on the Tasman by both carriers, with EK intending to shortly reinstate its direct DXB-AKL service.
The document also notes that Emirates is planning to reinstate services between Melbourne and Singapore next year, in conjunction with QF.
The ACCC said it expects to issue a draft determination in Feb or Mar 2023, with a final ruling in Apr or May next year.
The full submission is available online at accc.gov.au.