Guess what is the exception ACCC enforced for Qantas-Emirates deal

Just a tiny bit of concern.

According to Patersons Aussie Aftermarket, Qantas Airways (QAN) advised that the ACCC has decided to grant authorisation, subject to a condition, for an alliance between the company and Emirates until 31 March 2018.

The alliance will involve coordination of the airlines' passenger and cargo transport operations and other related services.

The one exception is the trans-Tasman where QAN and Emirates compete on four routes which accounted for around 65% of total passenger capacity between Australia and NZ in the year to 30 June 2012.

Here's more from Patersons Aussie Aftermarket:

On these routes, the ACCC is concerned that QAN and Emirates will have the ability and incentive to reduce or limit growth in capacity in order to raise airfares.

In order to address this concern, the ACCC has imposed a condition of authorisation which requires the airlines to maintain at least their pre-alliance aggregated capacity on the four overlapping trans-Tasman routes, subject to a review to consider whether increases in the minimum required capacity are warranted

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