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Qantas and British Airways seeking extension to JV agreement

10-Nov-2009 10:37 AM

Qantas and British Airways are reportedly seeking an extension to their JV agreement for Australia-London services with the Australian Competition and Consumer Commission (ACCC), due to concerns Middle Eastern carriers, Emirates, Etihad and Qatar Airways, will increase their share of the Premium market on the route to approximately 50% by 2012 (The Age, 10-Nov-2009). British Airways stated it will “seriously contemplate” reducing Australia service frequency in the medium term if the JV extension is not approved. The two carriers have seen their share of the Premium market on the route decline from 60% to 55% since 2003. The ACCC is expected to make a decision on the application in Mar-2010.