CCS overhauls passenger airline alliance framework
Airline alliance notifications are now streamlined into a three-step approach.
The Competition and Consumer Commission (CCS) has updated its passenger airline guidance note for alliance agreements, introducing a more structured review process and expanded guidance on how airlines can address competition concerns.
The revised guidelines, known as PAGN 2026, take effect from 27 July 2026 and supersede the previous guidance note. The new rules follow a public consultation conducted between 25 February and 11 March 2026, with contributions from the business and legal community described as generally supportive.
The key changes cover four areas. The review process for airline alliance notifications has been streamlined into a three-step approach, with clearer milestones on when airlines should initiate commitment discussions with CCS and when to finalise commitments for market testing.
The guidelines also expand guidance on the types of commitments airlines may offer to address competition concerns, including capacity commitments, capacity growth mechanisms and non-fulfilment allowances.
On competition assessment, the updated guidelines provide more comprehensive guidance on how CCS evaluates passenger airline alliance agreements, including the treatment of differentiated airline products such as full service airlines and low cost carriers, as well as metal-neutral alliances.
The guidelines also set out CCS's analytical framework for assessing whether an alliance qualifies for the Net Economic Benefit exclusion under the Competition Act, including the evidential requirements for substantiating efficiency claims and examples of efficiencies previously accepted or rejected by CCS.
The guidelines will be reviewed periodically to ensure their continued efficacy, taking into account insights from CCS's cases and best practices from other competition jurisdictions.