Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has given the thumbs up to extending the partnership between Qantas and Emirates. This collaboration, which began in 2013 and was extended in 2018, allows the airlines to work together on routes connecting Australia with Europe, New Zealand, Asia, the Middle East, and North Africa. The current authorization, which expired on March 31, 2023, has now been extended for another five years.
The ACCC didn’t just rubber-stamp the extension, though. They first granted an interim authorization on March 23, 2023, to keep the partnership going while they looked into the matter. A draft approval followed on June 22, and the final nod came on August 17, 2023.
Benefits and Concerns
The ACCC believes that this ongoing coordination between Qantas and Emirates will be a good thing for travelers. It will make it easier to connect between a wide variety of destinations and give passengers more chances to earn and redeem loyalty rewards. Plus, on routes where Qantas and Emirates both offer flights, passengers will have more choices for flight times and travel options.
But there’s a catch. The ACCC is worried about the Sydney to Christchurch, New Zealand route. Since Air New Zealand is the only other airline flying that route, the ACCC is concerned that the partnership between Qantas and Emirates might hurt competition. So, they’ve told Qantas and Emirates to keep them in the loop with regular updates on passenger revenue and operating costs for the next five years.
Emirates in Australia
Emirates is no small player in Australia’s international market. According to data from CAPA and OAG, Emirates has the fifth-largest share of Australian international seat capacity for the week of August 14, 2023. With a 7.3% share, Emirates is right behind Qantas, Jetstar, Singapore Airlines, and Air New Zealand. Australia is also Emirates’ fourth-largest market, following India, the UK, and the U.S.
This extension of the partnership between Qantas and Emirates is a positive step for both airlines and travelers. It promises to make travel more convenient and rewarding for passengers. But the ACCC’s concern about the Sydney to Christchurch route shows that they’re not just giving a free pass. They’ll be keeping a close eye on things to make sure that competition stays healthy.
It’s a balance between cooperation and competition, and it’ll be interesting to see how it plays out over the next five years.
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