MAS raises Qantas, Emirates concerns

MAS raises Qantas, Emirates concerns
By admin


Malaysia Airlines has urged the competition regulator to undertake a detailed analysis of the application by Qantas and Emirates, claiming the detriments of the deal outweigh any public benefits.

In a submission to the Australian Consumer and Competition Commission, MAS general council Dr Vince See insisted the airline does not oppose final authorisation of the agreement, but said the application had failed to provide a “comprehensive and fair picture” of the anti-competitive effects of the alliance on both the aviation industry and Australian consumers.

He accused the  carriers of delivering a “one-sided” and “self-serving” argument, cluttered with generalisations on both the public benefits and detriments of such a deal.

Route by route and market by market analysis is required to get a “real feel” for the matter, he continued.

Meanwhile, See highlighted a number of concerns regarding the deal. He dismissed the airlines’ claim the networks of Qantas, Jetstar and Emirates are complementary, instead describing them as “significantly overlapping”. He predicted the tie-up would encourage other carriers to follow suit, destroying the “existing and would-be competitive situation” with significant implications for the aviation and tourism industries.

“With the trend in place, there will be fewer players serving the routes into Australia leading to higher prices which will in turn make Australia less attractive to international tourists,” he wrote.

He added Australian consumers would also be hit by price hikes and by fewer choices as a result of the alliance.

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