Qantas and Air New Zealand have advised the Australian Competition and Consumer Commission that they will be lodging applications for authorisation with the ACCC today. The applications are understood to relate to proposals for Qantas to take up an equity position in Air New Zealand and for a strategic alliance between the two airlines.
ACCC Chairman, Professor Allan Fels, said that the authorisation process provides immunity from court action for agreements or acquisitions which reduce competition and might otherwise be subject to challenge under the Trade Practices Act 1974.
"However authorisation is not granted lightly", Professor Fels said. "Authorisation can only be granted where the ACCC is satisfied that the public benefit arising from the conduct outweighs any public detriment".
A key element of the ACCC's assessment of authorisation applications is public consultation. As part of the process the ACCC places authorisation applications on a public register and seeks the views of interested parties on the applications.
"The ACCC will be directly approaching parties it has identified as having an interest in the Qantas/Air New Zealand application. However it is open to any person to make a submission in relation to the application. Submissions need to be lodged with the ACCC by early February 2003".
Professor Fels said that a final decision on the Qantas/Air New Zealand application was expected to be made toward the middle of 2003.
"The Trade Practices Act is quite specific on the steps the ACCC must follow in considering authorisation applications. Apart for consultation with interested parties the ACCC is required to issue a draft determination on which the applicants and interested parties have the opportunity to comment. The ACCC will also be liaising closely with the New Zealand Commerce Commission which is conducting a parallel assessment of the Qantas/Air New Zealand proposal under New Zealand competition law".
Submissions may be lodged in writing addressed to: The General Manager, Adjudication Branch, Australian Competition & Consumer Commission, PO Box 1199, Dickson, ACT 2602. Submissions can also be lodged by email to adjudication@accc.gov.au, or by facsimile on 02 6243 1211.