Qantas, Jetstar get Asia all clear

Qantas, Jetstar get Asia all clear
By admin

Qantas and Jetstar have been given the green light to coordinate their joint venture Asian networks after the competition regulator ruled it is likely to benefit consumers.

In a draft ruling issued today, the Australian Competition and Consumer Commission (ACCC) told Qantas its joint ventures involving Jetstar Asia, Jetstar Pacific, Jetstar Japan and Jetstar Hong Kong can collaborate more closely with each other on passenger and cargo services.

The ruling also enables the JV owners to "support and expand each JV and to relate them to their own business".

"The ACCC considers that the coordination is likely to result in public benefits to consumers by increasing the likelihood of additional Jetstar flights and destinations in Asia and providing increased online connections for consumers," ACCC chairman Rod Sims said.

Little, if any detriment will occur because the Jetstar joint ventures are unlikely to be close competitors with or without authorisation.

"Nor are the joint ventures likely to be close competitors with their owners," Sims said.

He added: "More important, in most instances where overlap does occur, there are multiple competitors present."

The ACCC said authorisation does not extend to direct coordination between any of the airline owners.

Further comment from Qantas, Jetstar and other interested parties are now invited ahead of a final ruling.

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