British Airways and Qantas set for another five years

Thursday, 1st April 2010

British Airways and Qantas joint Australian services are have been given the go-ahead for another five years. The Australian Competition and Consumer Commission (ACCC) has given the thumbs-up to the continuation of two airlines’ Joint Services Agreement (JSA), which allow both to provide commercial flights between Australia and Europe.

The coupling has been going strong for the last 14 years, with the two airlines carrying each other’s passengers and sharing flight codes. The JSA agreement is said to provide passengers will more choice and lower fares.

A spokesman for the ACCC said the deal is not decreasing competition on the heavily-contested routes, but that, in fact, any savings being made by JSA are being passed directly on to the customers. There is also still plenty of competition from other airlines.

The ACCC’s determination essentially means that British Airways and Qantas cannot be charged in court for conduct that might normally raise eyebrows under the Trade and Practices Act of 1974. The competition provisions will only be reviewed within the next five years if the public detriment begins to outweigh the public benefit.

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