The Australian Competition and Consumer Commission (ACCC) has granted interim approval to Qantas and Jetstar for their continued cooperation with Jetstar units in Singapore and Japan.
In a statement issued 3 March, the commission is also proposing to extend the coordination agreement for a further five years, instead of the 10 that both parties had asked for.
The interim authorisation covers areas such as flight scheduling, sales and marketing, and pricing among Qantas, Jetstar, Jetstar Asia and Jetstar Japan.
The ACCC also intends to allow for coordination - “in certain circumstances - between Jetstar Japan and Japan Airlines, which partially owns the low-cost carrier. However, it says the reauthorisation will not allow coordination between Qantas and Japan Airlines.
Says ACCC commissioner Anna Brakey: “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 and marketing, and pricing.
“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,” she adds.
The commission had previously okayed the partnership in 2013 and 2018. It is now inviting submissions in response to the interim authorisation.