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Qantas, China Eastern Airlines withdraw request to regulator to extend pact

Himanshi Akhand
Updated ·2-min read
Two Qantas Airways Airbus A330 aircraft can be seen on the tarmac near the domestic terminal at Sydney Airport

By Himanshi Akhand

(Reuters) -Qantas Airways said on Tuesday the company and China Eastern Airlines have withdrawn their application to the Australian competition regulator that sought to extend their joint business.

The announcement comes a month after the Australian Competition and Consumer Commission (ACCC) said it planned to end a long-surviving partnership between the two airlines over claims it would lessen competition and provide the airlines a chance to hike airfare.

The partnership allowed Qantas and China Eastern to coordinate passenger and cargo movement between Australia and China.

"The airlines have commenced a process to unwind the joint business over the coming weeks, which includes an end to the coordination of pricing and schedules, and the removal of joint marketing material," Qantas said in a statement.

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ACCC acknowledged the statement saying, "Interim authorisation granted on 30 March 2023 is no longer in effect."

Recently, Qantas also scrapped its A$611 million ($388.60 million) plan to buy out charter flight operator Alliance Aviation Services, after the ACCC blocked the deal.

Last week, Australia said it will ask the ACCC to monitor domestic passenger flights in a bid to boost competition in a sector dominated by Qantas, which has been under scrutiny for alleged anti-competitive behaviour.

The flagship carrier has been accused of lobbying the federal government to stop rival Qatar Airways from running additional flights to Australia.

ACCC also sued Qantas in August for selling tickets to thousands of flights after they were cancelled, putting it at risk of huge fines. Long-serving CEO Alan Joyce brought forward his retirement after the scandal.

Earlier this month, the airline said chairman Richard Goyder will step down in late 2024, as it renews its board in an effort to restore trust among investors and fix its battered reputation.

($1 = 1.5723 Australian dollars)

(Reporting by Himanshi Akhand and Ayushman Ojha in Bengaluru; Editing by Janane Venkatraman and Dhanya Ann Thoppil)