Canberra warns of ‚Äúmajor setback”

Canberra warns of ‚Äúmajor setback”
By admin


Imposing capacity conditions on four overlapping Qantas and Emirates trans-Tasman routes would deliver a "major setback" for Canberra and its bid to attract international flights, airport officials have warned.

In a submission to the Australian Competition and Consumer Commission (ACCC), the airport said the conditions would deter carriers from entering other markets and also add to the growing congestion at Sydney Airport.

The ACCC, in its draft ruling to approve the Qantas/Emirates alliance, said it would impose capacity conditions between Sydney-Auckland, Melbourne-Auckland, Brisbane-Auckland and Sydney-Christchurch, routes which are operated by both carriers.

Canberra's concerns were echoed by Qantas who said the conditions do not recognise the "broader competitive dynamics" of the Tasman.

"In imposing this condition the ACCC is inadvertently impairing Canberra and the broader south-east region of New South Wales from being serviced by direct flights across the Tasman," Canberra Airport managing director Stephen Byron said.

"We continue to work diligently alongside the ACT Government to attract and deliver international flights to the capital and believe the trans-Tasman market is one of the most viable sectors to establish sustainable direct international flights.

"A decision to tie up airline capacity into other Australian ports would deliver a major setback to introducing international flights to Canberra."

While the ACCC acknowledges that such conditions may deter carriers from entering other routes, the airport said it fails to take into account the detriments that would cause.

Byron urged the regulator to include details of the negative impact when it weighs up the net benefit of the proposed alliance.

He suggested imposing conditions on overall trans-Tasman capacity and where Qantas commences Canberra-Auckland and/or Canberra-Wellington services "this capacity is added to either Sydney-Auckland or Melbourne-Auckland capacity for the purposes of complying with the condition".

Meanwhile, Adelaide Airport has called on the ACCC to allow a concession allowing the reallocation of one aircraft from Sydney to Adelaide.

The reintroduction of Auckland-Adelaide was of "key interest", the South Australian airport said.

"It is our understanding that with the number of carriers serving the Sydney-Auckland route, overall load factors tend to be low," managing director Mark Young said. "In our view a clear opportunity exists to utilise the apparent spare capacity on the daily Emirates A380 (489 seats) which would adequately accommodate the full traffic load of the Qantas B737-800 (168 seats) on all or most occasions."

Such a concession would not lessen capacity from Sydney but deliver "a significant competitive outcome for South Australia", he added.

In its own submission, Qantas called for a total Tasman commitment rather than one that is route specific, and said the four routes identified by the ACCC are "characterised by significant overcapacity".

Under the ACCC proposal, Qantas said it would be unable to launch an Adelaide to Auckland service as it would not have available aircraft.

"This new direct service would only be possible because of the flexibility to utilise Emirates' capacity on Sydney-Auckland services and redeploy a Qantas aircraft for us on this new route," it said.

Qantas added that imposing the route-specific conditions "would pro-competitive expansion on other Tasman routes".

Latest News

  • Products

Embrace the journey: Traversing the world with the Shokz OpenRun

If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]