Interim authorisation granted to Jetstar’s Asian brands

The ACCC will continue to allow a pair of Jetstar-branded Asian carriers to coordinate.

INTERIM authorisation has been granted by the Australian Competition & Consumer Commission (ACCC) to allow Jetstar’s Asian brands to continue to coordinate.

Qantas Airways and Jetstar Airways have applied to continue coordinating with each other and two Jetstar-branded joint ventures, Jetstar Asia and Jetstar Japan.

The authorisation also allows coordination between Jetstar Japan and Japan Airlines in some circumstances, the ACCC said.

The Commission has previously authorised this coordination in 2013 and 2018, and has issued a draft determination proposing to grant final authorisation to the arrangements for another five years, rather than the full 10 years applied for.

“The continued coordination of the Jetstar-branded airlines allows them to operate as a single fully integrated organisation on matters such as flight scheduling, sales & marketing, and pricing,” ACCC Commissioner Anna Brakey said.

“The ACCC considers that the coordination is likely to result in public benefits by providing consumers with a wider choice of products, enhanced services, and more convenient flight times.

“This conduct is likely to result in little, if any, lessening of competition,” Brakey said, however the ACCC is now inviting submissions in response, due 17 March, before making its final decision.

The ACCC also stressed the proposed re-authorisation does not allow coordination between Qantas and JAL.

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