Trade Resources Logistics & Customs Qantas and Emirates Airlines Welcomed The Accc's Conditional Approval of Their Partnership

Qantas and Emirates Airlines Welcomed The Accc's Conditional Approval of Their Partnership

TWU Takes on The Qantas

Emirates Tim Clark and Qantas Alan Joyce at the signing of the agreement.

Understandably, Qantas and Emirates airlines have welcomed the ACCC's conditional approval of their partnership, while the Transport Workers Union continues its opposition.

Qantas

For its part, Qantas says the partnership will provide customers with a seamless international and Australian network, frequent flyer benefits and world-class travel experiences.

"Today's decision follows a six month review process by the ACCC that included several rounds of public submissions, a pre-decision conference and a comprehensive analysis of the benefits the partnership will deliver to customers," the airline said in a statement.

Chief executive officer of the Qantas Group Alan Joyce said the decision was great news for Australian travellers and local tourism, as well as the airline itself.

"Qantas is an Australian icon and the future of its international business is much brighter with this partnership," said Mr Joyce.

"Customers are already responding very strongly to the joint network that Qantas and Emirates have built, and to the frequent flyer benefits that extend across it, with a significant increase in bookings."

Qantas and Emirates will offer a combined total of 98 flights a week between Australia and Dubai, with Qantas continuing to operate daily services from Melbourne and Sydney through to London.

President of Emirates Tim Clark, said: "This is a truly game-changing partnership that brings together two of the world's best airlines and offers some of the highest quality travel experiences.

"Dubai is a leading global hub and through it, our two airlines will connect Australia to Europe, the UK and Northern Africa more smoothly than ever before," added Mr Clark.

Preparations for the partnership, including Qantas' new operational hub in Dubai, are now complete. The first flight was scheduled from Sydney to London (via Dubai) on 31 March 2013.

Qantas aircraft will now operate from Sydney (QF001) and Melbourne (QF009) to London via Emirates' Dubai hub. Qantas Freight and Emirates SkyCargo have also signed an agreement to co-operate on jointly marketing cargo capacity.

Qantas says the tie-up with Emirates SkyCargo will expand its network to include 65 Emirates destinations in Europe, the Middle East, North Africa and Asia, with increased frequencies, improved flexibility, and "ultimately better service through seamless connection to more destinations."

Transport Workers' Union (TWU)

National Secretary of Transport Workers' Union Tony Sheldon said while the ACCC rejected Qantas key claims, yet bizarrely it still approved the deal.

"The ACCC has rejected Qantas' key argument that the airline's international section was in terminal decline, yet has approved the Qantas/Emirates alliance and confirmed that it did not consider Australia's national economic, security and employment interests," Mr Sheldon said.

"The decision from the ACCC categorically rejects Qantas' argument that its international section was in terminal decline. Given the access that the ACCC had to Qantas financial accounts, it's clear that they contradict the public statements and spin from senior management. The alleged terminal decline was the key reason for the alliance given by Leigh Clifford and senior management to the workforce, the community and policy makers, but this has been rejected by the ACCC."

"It's clear that there are serious questions for Leigh Clifford and Alan Joyce to answer on this and many other issues, such as why Qantas mainline is bleeding cash to prop up Jetstar International and why Qantas senior management are bleeding our national carrier of its obligations with tactics like slashing flights to the Northern Territory and illegally crewing Jetstar domestic flights with Thai flight attendants on wages as low as $400 per month.

"Given the rejection of Qantas senior management's central claim and the findings that the decision is not likely to give rise to employment or significant public benefit it is nothing short of a disgrace that the ACCC has delivered an ill-considered and ill-timed endorsement of the deal. It is against the National Interest to be exporting our economic security and handing it over to Middle Eastern and Asian national carriers who conflict with Australia's National Interest in times of natural disasters and economic uncertainty.

"The ACCC has proven itself incapable and unwilling to address anything other than a narrowest interpretation of its responsibilities, so it is now time for public policy makers to step in. Politicians on all sides of the aisle have a responsibility to let us know how they intend to maintain and grow Australia's aviation industry, which is central to the national interest. After all, that's why Qantas was bequeathed debt free by the Australian public.

"We have 21 days' leave to appeal and we are considering all of our options to appeal in the face of this bizarre and contradictory decision."

Mr Sheldon quoted the following excerpts from the ACCC decision:

178. The ACCC does not accept or rely on Qantas' claim that Qantas International is in 'terminal decline' and unable to compete effectively or operate profitably. The ACCC considers that the scope of Qantas' international operations in the likely future without the proposed conduct would not be materially different to the likely future with the proposed conduct.

304. On balance, the ACCC considers that the proposed conduct is not likely to give rise to employment or procurement benefits by stimulating Qantas' activity in Australia.

279. The ACCC does not have sufficient evidence to conclude that this (public benefit) is likely to arise.

Source: http://www.tandlnews.com.au/2013/04/02/article/two-takes-on-the-qantas-emirates-alliance/
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TWU Takes on The Qantas
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