Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

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

Published 10/24/2023, 12:14 AM
Updated 10/24/2023, 03:21 AM
© Reuters. FILE PHOTO:Two Qantas Airways Airbus A330 aircraft can be seen on the tarmac near the domestic terminal at Sydney Airport in Australia, November 30, 2017.      REUTERS/David Gray/File Photo

By Himanshi Akhand

(Reuters) -Qantas Airways said on Tuesday the company and China Eastern Airlines (OTC:CEAYY) have withdrawn their application to the Australian competition regulator that sought to extend their joint business.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

ACCC acknowledged the statement saying, "Interim authorisation granted on 30 March 2023 is no longer in effect."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

© Reuters. FILE PHOTO:Two Qantas Airways Airbus A330 aircraft can be seen on the tarmac near the domestic terminal at Sydney Airport in Australia, November 30, 2017.      REUTERS/David Gray/File Photo

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)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.