Proposed conduct between Qantas Airways Limited and Emirates in relation to their Coordination Agreement

Case Title

Proposed conduct between Qantas Airways Limited and Emirates in relation to their Coordination Agreement

Notifying Date:

12 October 2012

Notifying Parties:

The parties to the proposed conduct are:

a. Qantas Airways Limited; and

b. Emirates

Summary of the nature and objective of the agreement

Emirates and Qantas and their related bodies corporate seek a decision from the Competition Commission of Singapore to allow coordination of their operations. The coordination is proposed to include all network, scheduling, pricing, marketing, purchasing, customer service and resourcing decisions and frequent flyer programs between the above airlines.

The purpose of the proposed conduct is to create a seamless premium global air services operation that better connects Australia and New Zealand to Europe including the United Kingdom and the Middle East and Northern Africa by consolidating Qantas’ services to Europe through Dubai and bringing together two world-class complementary brands, networks and business models.

As a result of the coordination, the Qantas Group will increase its point-to-point services to Singapore and redesign and optimise its South East Asia network providing more same-day connections throughout Asia hubbing through Singapore.

As a result of the coordination, Emirates will be able to better connect its services from Dubai with Qantas’ and Jetstar's services to Australia and New Zealand via Singapore, better connect its services from Dubai to South East Asia destinations via Singapore, particularly in conjunction with Jetstar Asia and to codeshare on Qantas’ services between Singapore and Australia/New Zealand.

The proposed conduct is clearly pro-competitive and efficiency enhancing and will deliver benefits to Singapore in the form of more competitive fares and better quality product/service offerings for Singaporean consumers and a strengthened aviation hub in the South East Asia region.

The relevant services that are the subject of the application are the international air transportation of passengers and cargo and associated support activities.

Decision

On 28 March 2013, CCS issued the parties with a Clearance Decision on their proposed alliance.

Please click here for the media release.