(Reuters) – Australia’s competition regulator on Friday granted interim authorisation to Qantas Airways and its budget arm Jetstar for a continued coordination of two Jetstar Asian-based joint ventures – Jetstar Asia and Jetstar Japan.
Australian Competition and Consumer Commission (ACCC) said the interim authorisation would also allow coordination in certain circumstances between Jetstar Japan and Japan Airlines, and comes after the regulator previously authorised this coordination in 2013 and 2018.
The continued coordination of the Jetstar-branded airlines allows them to operate as a single fully integrated organisation “on matters such as flight scheduling, sales and marketing, and pricing,” the regulator said.
ACCC, however, said the proposed re-authorisation does not allow coordination between Qantas and Japan Airlines.
The regulator said it issued a draft determination proposing to grant final authorisation to the arrangements for a period of five years rather than 10 and is inviting submissions.
“The ACCC considers that the coordination is likely to result in public benefits by providing consumers with a wider choice of products, enhanced services, and more convenient flight times,” said ACCC Commissioner Anna Brakey.
“This conduct is likely to result in little, if any, lessening of competition,” Brakey said.
(Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips)
