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Order HereAustralia’s Competition and Consumer Commission (ACCC) has dropped its previous opposition against China Eastern’s planned alliance with Qantas, giving the carriers the green light to coordinate pricing and scheduling.
In March, the Australian regulator issued a draft determination intended to block the proposed alliance between China Eastern and Qantas, noting that both carriers would benefit from “an increased ability and incentive to limit capacity and/or increase airfares on the Sydney-Shanghai route.”
But the regulator said Aug.21 that China Eastern had agreed to increase frequencies on its Australia-China services and to introduce a new route if the deal was allowed.
China Eastern proposed in June that it would launch an extra 3X-weekly service on Sydney-Shanghai and Melbourne-Shanghai routes from September, before changing into a double-daily schedule on both city pairs by November.
Meantime, both carriers noted that they will significantly expand the range of destinations covered by their existing code-share deal. The two airlines already have a reciprocal codeshare agreement on 17 flights a week between Australia and China’s mainland in addition to a number of onward domestic destinations in both countries.
ACCC chairman Rod Sims said the regulator had imposed conditions requiring the two airlines to boost their capacity between Australia and China Eastern’s hub in Shanghai by 21% over the five-year term of their approval. The regulator will also require the two carriers to report their average fares, month by month, on each route between Australia and China on which they fly.
China Eastern is a SkyTeam member, while Qantas belongs to oneworld.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
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Order HereAustralia’s Competition and Consumer Commission (ACCC) has dropped its previous opposition against China Eastern’s planned alliance with Qantas, giving the carriers the green light to coordinate pricing and scheduling.
In March, the Australian regulator issued a draft determination intended to block the proposed alliance between China Eastern and Qantas, noting that both carriers would benefit from “an increased ability and incentive to limit capacity and/or increase airfares on the Sydney-Shanghai route.”
But the regulator said Aug.21 that China Eastern had agreed to increase frequencies on its Australia-China services and to introduce a new route if the deal was allowed.
China Eastern proposed in June that it would launch an extra 3X-weekly service on Sydney-Shanghai and Melbourne-Shanghai routes from September, before changing into a double-daily schedule on both city pairs by November.
Meantime, both carriers noted that they will significantly expand the range of destinations covered by their existing code-share deal. The two airlines already have a reciprocal codeshare agreement on 17 flights a week between Australia and China’s mainland in addition to a number of onward domestic destinations in both countries.
ACCC chairman Rod Sims said the regulator had imposed conditions requiring the two airlines to boost their capacity between Australia and China Eastern’s hub in Shanghai by 21% over the five-year term of their approval. The regulator will also require the two carriers to report their average fares, month by month, on each route between Australia and China on which they fly.
China Eastern is a SkyTeam member, while Qantas belongs to oneworld.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
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Order HereAustralia’s Competition and Consumer Commission (ACCC) has dropped its previous opposition against China Eastern’s planned alliance with Qantas, giving the carriers the green light to coordinate pricing and scheduling.
In March, the Australian regulator issued a draft determination intended to block the proposed alliance between China Eastern and Qantas, noting that both carriers would benefit from “an increased ability and incentive to limit capacity and/or increase airfares on the Sydney-Shanghai route.”
But the regulator said Aug.21 that China Eastern had agreed to increase frequencies on its Australia-China services and to introduce a new route if the deal was allowed.
China Eastern proposed in June that it would launch an extra 3X-weekly service on Sydney-Shanghai and Melbourne-Shanghai routes from September, before changing into a double-daily schedule on both city pairs by November.
Meantime, both carriers noted that they will significantly expand the range of destinations covered by their existing code-share deal. The two airlines already have a reciprocal codeshare agreement on 17 flights a week between Australia and China’s mainland in addition to a number of onward domestic destinations in both countries.
ACCC chairman Rod Sims said the regulator had imposed conditions requiring the two airlines to boost their capacity between Australia and China Eastern’s hub in Shanghai by 21% over the five-year term of their approval. The regulator will also require the two carriers to report their average fares, month by month, on each route between Australia and China on which they fly.
China Eastern is a SkyTeam member, while Qantas belongs to oneworld.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.