Carriers wary of Qantas plans

Carriers wary of Qantas plans
By admin

Air New Zealand has called on the competition regulator to examine the trans-Tasman as a stand alone market as it works through the Qantas-Emirates alliance application.

The carrier told the Australian Competition and Consumer Commission (ACCC) it was vital that Tasman operations do not get lumped together in the broad alliance plan.

The need for Qantas to compete in the long haul market is “very different” to that required across the Tasman, Air NZ said in its submission to the ACCC.

“The proposed integrated alliance is likely to enable benefits for the Australian public on the Applicant’s long haul networks,” it said. “We do not, however, believe the coordination is required on the trans-Tasman routes to achieve the consumer benefits as claimed in that market. We expect the ACCC will analyse the balance of benefits verses detriments on each independent market in detail during its review, and, as such analyse the Tasman as a standalone market.”

The fact that Jetstar operates 21.6% of Qantas’s Tasman capacity is out of step with the “seamless premium global air services” operation claimed by the alliance, Air NZ added.

It also said it was unclear how Qantas and Emirates will increase sales on the Tasman in ways they could not do without the alliance.

Singapore Airlines, in its submission to the ACCC, said it would not oppose the application but suggested that working with Emirates “is unlikely to be the only option available” to Qantas as it seeks rebuild its international division.

Qantas’s planned Jetstar Pan-Asia strategy, its membership of Oneworld, Joint Services Agreement with BA and its strong domestic network, all represent opportunities for Qantas, Singapore said.

It described the Emirates proposal as the “most competitively damaging” of the available options.

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