Emirates, Qantas alliance receives tentative nod

The proposed Qantas and Emirates alliance has received a tentative nod of approval, however, the request for a ten year partnership was knocked back to only five years.

Issuing the draft decision this morning, the Australian Competition and Consumer Commission (ACCC) warned that the alliance would result in “material, but not substantial” benefits to the travelling public.

According to the ACCC, overlapping routes, particularly across the trans-Tasman may “reduce or limit growth in order to raise airfares”.

As a result the Commission warned further approval would need to be issued with a restriction “in this regard”.

The ACCC also advised that due to the “dynamic nature” of the industry and concerns on trans-Tasman capacity, it would grant authorisation for only five years, half the time proposed by the two carriers.

The regulatory body has invited submissions from the applicants and interested parties in relation to the draft determination prior to making a final decision.

A final decision is expected to be made in March 2013.

Meanwhile earlier this week, Emirates executive vice president Thierry Antinori told an online newspaper that the carrier had no interest in joining any global airline alliances.

Although keen on expanding its bilateral partnerships, its “strategy” had not shifted in regards to networks like oneworld, Sky Team and Star Alliance, Latribune.fr reported.

"Our strategy is simply to fill out our network by concluding agreements with companies that cover best the part of the network we want to develop," the executive vice president said.

Sourced: etravelblackboardasia