EMMA KELLY / PERTH
The Australian government is calling for more substantial undertakings from Air New Zealand (ANZ) and Qantas to reduce anti-competitive issues concerning their proposed alliance. The government also suggests that any authorisation of the deal, which will see Qantas purchase 22.5% of Air New Zealand, should be for a restricted period and that a review mechanism is put in place, similar to that involving the joint services agreement between Qantas and British Airways.
In its submission to the Australian Competition and Consumer Commission (ACCC), the Department of Transport and Regional Services (DOTARS) says that it does not object to the alliance if suitable undertakings are imposed, but that it presents "serious competitive concerns" on the trans-Tasman and transpacific routes. DOTARS is calling for ANZ and Qantas to provide traffic statistics to competing airlines to allow them to decide on entering routes, adding that the sunset period of two years that the partners are offering for their undertakings is insufficient.
Meanwhile, United Airlines - the only competitor to Qantas/ANZ across the Pacific to the USA - believes that the alliance is inevitable, but agrees that the partners have offered "an insufficient series of commercial undertakings to safeguard competition".
Michael Whitaker, vice-president international and regulatory affairs says United wants a prorate agreement with Qantas on "most favoured nation" terms; full access to Qantas's seat inventory so that United can sell and provide service to and from domestic Australian points; an automation agreement to allow through check-in for passengers travelling between the USA and Australia; and codesharing on Qantas's domestic services for through passengers connecting to and from United's Sydney flights.
The ACCC is due to issue its draft determination by early April, with a final decision in June. New Zealand's Commerce Commission has a similar timetable.
Source: Flight International
