bid to resume flights with Japan has been rejected, despite the easing of travel restrictions on the horizon.
The Australian competition and consumer commission (ACCC), rejected Qantas's wishes to travel with Japan airlines, in order to preserve competition with other airlines like Virgin Australia and focus on the long-term recovery of the aviation and tourism sectors.
Chairmain Rod Sims said, “we accepted that there was likely to be some short-term benefits from the alliance being able to jointly reinstate services more quickly when borders are reopened, which may initially stimulate tourism. However, the longer-term benefits of competition between airlines are cheaper flights and better services for consumers, which is vital to the recovery of tourism over the coming years.”
Before the pandemic, Qantas and Japan Airlines together flew about 85 per cent of passengers travelling between Australia and Japan, and were were each other’s closest competitors on the largest route, Sydney-Tokyo, according to the ACC.
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