(Reuters) – Australia’s competition regulator on Wednesday re-authorised Qantas Airways Ltd and its budget arm Jetstar Airways Pty Ltd for a five-year continued coordination for two Jetstar Asian-based joint ventures – Jetstar Asia and Jetstar Japan.
The Australian Competition and Consumer Commission (ACCC) had previously granted an interim authorisation to the company, saying the continued coordination allows Jetstar to operate as a single fully integrated organisation “on matters such as flight scheduling, sales and marketing, and pricing”.
The re-authorisation also allows continued coordination between Jetstar Japan and Japan Airlines under certain circumstances, the regulator said.
“We believe 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,” ACCC Commissioner Anna Brakey said.
“We have decided to grant re-authorisation for five years, instead of the 10 years sought, given the dynamic and rapidly evolving nature of the travel industry.”
The re-authorisation does not allow coordination between Qantas and Japan Airlines, the regulator added.
(Reporting by Nausheen Thusoo in Bengaluru; Editing by Anil D’Silva and Subhranshu Sahu)
