ACCS OKs Qantas-Jetstar Tie-Up

The Australian Competition and Consumer Commission (ACCC) has given its seal of approval for the closer tie-up between Qantas and Jetstar for its Asia Pacific operations that cover Singapore, Australia, Japan, Vietnam and soon, Hong Kong.

The tie-up involves the two airlines’ cargo and passenger services.

Rod Sims, ACCC chairman, said the closer coordination between Jetstar and Qantas would likely benefit the general public. Adding Jetstar flights and having new destinations in Asia would be beneficial to consumers.

It was in June when Qantas sought the ACCC approval for its Jetstar Joint Venture Coordination Agreement (JVCA). The partnership would allow the two airlines to collaborate on the different facets of the airline business like scheduling, marketing, pricing, customer service, networking, frequent flyer and more.

Qantas said the JVCA states that the two airlines would operate as one integrated unit and would coordinate its activities and operations in the Asian region. The single business model would help generate better efficiencies and deliver more cost savings.

Qantas also said that the agreement would make the company more competitive as it seeks to maximize the opportunities and growing demand for air travel services.