The Australian Competition and Consumer Commission (ACCC) has granted reauthorisation to Qantas and Jetstar to continue coordination with two Jetstar joint ventures in Asia – Jetstar Asia and Jetstar Japan. The extension is valid for five years, till May 11, 2028.
The two airlines had sought ACCC’s approval to continue coordinating with each other and the Jetstar joint ventures on matters such as flight scheduling, sales and marketing, and pricing. Jetstar also sought to coordinate with its shareholding airlines including Qantas and Japan Airlines on passenger and cargo services within Asia.
“We believe the coordination is likely to result in public benefits by providing consumers with a wider choice of products, enhanced services, and more convenient flight times,” ACCC Commissioner Anna Brakey said. “The conduct permitted under this authorisation is likely to result in little, if any, lessening of competition, particularly given Qantas and Jetstar offer complementary services and face competition from a number of other airlines in the region. We have decided to grant re-authorisation for five years, instead of the 10 years sought, given the dynamic and rapidly evolving nature of the travel industry,” Brakey said.
The reauthorisation does not allow coordination between Qantas and Japan Airlines.
On 3 March 2023, the ACCC granted interim authorisation to allow the coordination to continue while the ACCC completed its assessment of the substantive application. At the same time, the ACCC also issued a draft determination proposing to grant reauthorisation for the arrangements for a period of five years.