The Australian Competition and Consumer Commission will not intervene in the acquisition of Metro Travel Pty Ltd by Concorde International Travel Pty Ltd. Concorde and Metro are wholesalers (or consolidators) of airline tickets to retail travel agents.
"The ACCC found that, although Concorde/Metro would have a substantial share of consolidation business in Australia, there are a number of competitive constraints that are likely to prevent the merged firm from increasing its prices or margins", ACCC Chairman, Professor Allan Fels, said today.
"These competitive constraints include:
- competition from existing consolidators;
- the ability of accredited retail agents to obtain tickets from airlines via the International Air Transport Association (IATA) system;
- the opportunity for non-IATA retail agents to be accredited by IATA or join a retail franchise or buying group; and
- the ability of some retail groups which have substantial buying power to vertically integrate into consolidation.
"In the longer term, the ability of travellers to reserve and pay for tickets through the Internet may change the structure of airline ticket distribution in Australia. Nevertheless, the extra service that retail travel agents give to travellers will always be important. "The ACCC has therefore concluded that the acquisition is unlikely to substantially lessen competition".
Further information Professor Allan Fels, Chairman, pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808