On Tuesday, Qantas Airways (QAN.AX) said that the firm and China Eastern Airlines (600115. SS) had withdrawn their application to the Australian competition authorities that aimed to prolong their joint operation. The application had been seeking to extend their joint business.
The statement comes one month after the Australian Competition and Consumer Commission (ACCC) stated that it wanted to discontinue a long-lasting relationship between the two airlines amid accusations that the arrangement would limit competition and offer the airlines an opportunity to increase airfare.
Because of their relationship, Qantas and China Eastern could better coordinate the transportation of passengers and goods 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 stated in a prepared statement.
The ACCC accepted the statement stating that the “interim authorization granted on March 30, 2023, is no longer in effect.”
After the Australian Competition and Consumer Commission (ACCC) banned the deal, Qantas recently abandoned its proposal to take out charter jet operator Alliance Aviation Services (AQZ.AX) for A$611 million ($388.60 million).
The previous week, Australia announced that it would ask the Australian Competition and Consumer Commission (ACCC) to monitor domestic passenger flights to increase competition in a sector that Qantas dominates. Qantas has been under investigation for potential anti-competitive behavior.
It has been alleged that the flagship airline has been pressuring the federal government to prevent its competitor, Qatar Airways, from operating further flights to Australia. In August, the ACCC also filed a lawsuit against Qantas for selling tickets to hundreds of flights after the airline had already decided to cancel those flights, placing Qantas in danger of incurring enormous fines. Following the investigation, the company’s longtime CEO, Alan Joyce, decided to step down earlier than planned.
The airline said earlier this month that its chairman, Richard Goyder, will step down in late 2024 as part of the company’s ongoing attempt to replace its board of directors to regain investors’ trust and repair its tarnished reputation.
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