The ACCC proposes to deny coordination between Qantas and China Eastern

[RooFlyer]

Not with a one airline policy.

One Chinese airline flying the route, one Australian airline flying the route. Two Airlines competing against each other.

If the Australian airline can’t make a commercial return without joining with the Chinese carrier, then maybe it should look elsewhere. I don’t think it’s the remit of the ACCC to reduce competition in order to enable the Australian company to make a profit.

That would appear to be the role of the Australian government

 

[Blackadder]

This is the latest I can find on the Chinese Govt airline policy.
What is the five one policy for China Airlines?


Under the restrictions of the Civil Aviation Administration of China's "five-one" policy, in which every foreign airline was allowed to maintain only one air route to China and operate no more than one flight a week, domestic airlines only retained a small number of flights between China and the US

Edit: Seems this was suspended Jan 8 this year. Control policies for intl flights to end after restrictions ease

 

[Blackadder]

Hmm a random search for SYD-PVG-SYD 26FEB-11MAR , it seems QF is alot cheaper on the outbound and only a few dollars difference on the return.
Not sure how the ACCC come up with the idea they aren't competing.

 

[AIRwin]

As its name suggests they must fly in an Easterly direction to get to China meaning a circumnavigation of the globe is in order!

Same with Air North

 

[dajop]

Tend to agree that Chinese carriers are competing with each other. Main competitors for Qantas are probably CX and SQ (particularly on MEL-PVG).

 

[RooFlyer]

Hmm a random search for SYD-PVG-SYD 26FEB-11MAR , it seems QF is alot cheaper on the outbound and only a few dollars difference on the return.
Not sure how the ACCC come up with the idea they aren't competing.

For a start, it’s not just passengers but freight, but sure, they might be competing now, but if they get the proposed “Extended Joint Coordination Agreement that enables them to coordinate passenger and cargo transport operations between Australia and China until the end of March 2024” up, do you think the competition will remain as much? That’s what the ACCC is getting at.

 

[justinbrett]

Plenty of non-direct competition on the route that price conscious pax can use

Compare that to the authorised codeshare between QF & LA, which has the monopoly of all routes between Australia/NZ and South America.

Makes no sense.

 

[RooFlyer]

Plenty of non-direct competition on the route that price conscious pax can use

So, let them use it!

Compare that to the authorised codeshare between QF & LA, which has the monopoly of all routes between Australia/NZ and South America.

When is it up for review? That might be next.

A few more routes closed down for covid - via IPC that I took once and I'm not sure when AR stopped its service (fond memories of that one - party plane!!)

 

[justinbrett]

So, let them use it!



When is it up for review? That might be next.

A few more routes closed down for covid - via IPC that I took once and I'm not sure when AR stopped its service (fond memories of that one - party plane!!)

It just got renewed until 2029.

 

[anyonebutqantas]

Should still be enough Aussie business traffic to sustain SYD-PVG. Attempts to go to PEK have never worked out though.

 

[muppet]

It just got renewed until 2029.

But that’s just the block seats codeshare arrangement isn’t it? Allowing QF to sell in a block essentially a portion of Australia’s share of seats permitted on the route to LATAM (otherwise limited to Chile’s share of seats).

LATAM and QF don’t have ACCC authorisation to coordinate fares and schedules, do they?

 

[SCM]

One Chinese airline flying the route, one Australian airline flying the route. Two Airlines competing against each other.

If the Australian airline can’t make a commercial return without joining with the Chinese carrier, then maybe it should look elsewhere. I don’t think it’s the remit of the ACCC to reduce competition in order to enable the Australian company to make a profit.

That would appear to be the role of the Australian government

200 IQ post here.

There is insatiable travel demand right now, why should the ACCC quasi-subsidise Qantas to fly routes where they can't even make a profit, while denying customers the opportunity for more flights to places they actually want to fly to? Insanity.