Qantas-Emirates alliance receives full (draft) approval from Australia's competition authority

As expected, Australia's Competition and Consumer Commission has given its draft approval to the Qantas-Emirates application for a wide-ranging partnership. Final approval is now expected in Mar-2013. There was negligible opposition to the proposal from Qantas' competitors or from other parties.

The competition body considered that "the alliance is likely to result in material (although not substantial) public benefits". The rather lukewarm endorsement neglects the likely downside if Qantas were not to have secured a partnership with one of its most powerful international competitors.

Only one very modest scope restriction was placed on the carriers: they must maintain current levels of capacity on the Australia-New Zealand routes they jointly serve. And, instead of granting the ambitious 10 year authority requested, the ACCC allowed a 5 year exemption.