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Australia plans to reject Qantas-China Eastern Airlines tie-up over competition concerns
- Australia’s competition regulator cites insufficient evidence that the partnership will lead to more services between the two countries
- Qantas has been working to repair its reputation after the regulator files a legal suit against it for allegedly selling cancelled flights
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Australia’s competition regulator said on Friday it intended to deny authorisation for Qantas Airways and China Eastern Airlines to coordinate operations between the two countries, citing competition concerns amid increased demand.
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The Australian Competition and Consumer Commission (ACCC) said an agreement that enabled the two key competitors to coordinate passenger and cargo transport flights between Australia and China until the end of March 2024 could potentially breach competition laws.
Qantas has been under the radar with the flagship carrier suffering a string of reputational damage after the ACCC initiated legal proceedings for allegedly selling tickets for thousands of cancelled flights, following which its long-serving CEO Alan Joyce announced an early retirement.
Earlier this week, Australia’s top court ruled that the airline broke the law by sacking 1,700 ground staff and replacing them with contractors early in the COVID-19 pandemic.
The regulator had previously granted the two airlines an interim authorisation seeking time to further assess the implications of the coordination for public benefits.
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