Australian regulator denies approval for Qantas-Japan Airlines deal

Qantas and Japan Airlines (JAL) have expressed their disappointment at the Australian Competition and Consumer Commission’s (ACCC) decision to block the airlines’ plans to form a joint business that would have boosted the recovery of tourism when international borders reopen.

The airlines had sought approval from the ACCC in December 2020 to work more closely together to better serve customers travelling between Australia, New Zealand and Japan and ensure a faster and sustained recovery from COVID.

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As part of the agreement the airlines had proposed:

An expanded codeshare relationship to up to 29 destinations and better flight schedules between Australia, New Zealand and Japan.
A new direct route Cairns – Tokyo operated by Qantas.
Coordination of pricing, schedules, sales and tourism marketing supporting growth in key tourism markets.
Enhanced frequent flyer benefits and more premium travel opportunities for Qantas and JAL customers.
Qantas and JAL will continue their existing codeshare and oneworld partnership, which do not provide the same benefits than would have been possible under a joint business. Qantas and JAL have been partners in Jetstar Japan, one of the largest domestic low cost carriers in Japan, since 2012.

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Japan is the world’s third largest economy and one of Australia’s largest trade and investment partners. In 2019 half a million of its residents visited Australia, meaning it is one of the most important tourism and corporate markets as the recovery begins.

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