Qantas and China Eastern’s ongoing plans to cooperate on passenger and freight services through 2024 are at threat.
This follows the Australian Competition and Consumer Commission (ACCC) plans to deny the authorisation needed for the two airlines.
The ACCC has been hot on the back of the Australian flag carrier as it continues to make headlines for all the wrong reasons. Alongside this, ACCC alleges that Qantas sold cancelled flights and did not inform customers for a prolonged period.
Suppose Qantas and China Eastern’s plans were to move ahead. In that case, the ACCC cites an increase in prices as being the number one incentive for both companies, which would not improve customers’ experience and hence is why they’re intervening.
Whenever an Australian company proposes a change, collaboration or something else, it is closely inspected by the watchdog and more to ensure it is fair to Australians and won’t have any adverse effects. This deal, per ACCC, would likely have more cons than positives, an immediate red flag.
Such a collaborative effort from the two carriers is making headlines now because the re-authorisation for the alliance will take place over the coming months. An interim authorisation was only issued in March of this year, so the two major airlines’ big day is slowly approaching.
