THE Australian Competition and Consumer Commission has weighed in on the controversy around Qantas’ application for closer cooperation with Air Niugini on the PNG route (TD 06 Mar) which is being strongly opposed by Virgin Australia.
The ACCC says it is important for the International Air Services Commission to “compare the likely future with and without the codeshare arrangement in place” with the threat of entry or expansion by Virgin as the main source of competitive constraint on the Brisbane and Sydney to Port Moresby routes.
The commission says the proposed codeshare has the potential to lessen competition, with developments since a previous IASC assessment in 2016 indicating that the strength of the competitive constraint posed by Virgin may have deteriorated, and urged the IASC to look at trends over longer periods than one year.
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Source: traveldaily